Harts Range Project Annual report for MCS 235 to MCS 244 period ending 20 June 2006

Abstract

The Harts Range Ruby Mine workings lie in the southeast of the Northern Territory, roughly 130 kilometres northeast of Alice Springs (260 km by road, via the Plenty Highway). Mining Claims MCS 238-MCS 244 cover the main area of the workings (the Ruby Mine Prospect) and MCS 235-MCS 237 extend further northwest over the same sequence of rocks and additional exploratory workings (the Vermiculite Prospect). Barfuss Corporation holds all ten adjoining Mining Claims. The Project is in the northern Harts Range and topography is frequently rugged. Access is from the north via station tracks running south from the Plenty Highway, past the Entire Bore. Vehicle access within the leases is largely restricted to established tracks. The lease area is underlain by gneisses and amphibolites of the Riddock Amphibolite (or 'Harts Range Meta-igneous Complex') part of the Early Proterozoic Harts Range Group (or 'Irindina Supracrustal Assemblage') in the eastern Arunta Block. The ruby-corundum and vermiculite occurrences are associated with discrete meta-ultramafic bodies within the 'Entire Anorthosite' unit. Previous mining at the Harts Range Ruby Mine was conducted by Mistral Mines in the late 1970s to early 1980s and was restricted to surficial shallow open excavations. The ruby-bearing rocks have not been fully excavated and are known to still contain rubies. The ruby-bearing rocks are interpreted to be within metamorphosed boudinaged ultramafic rocks. The ultramafic bodies outcrop as discrete 'pods' which are interpreted to be the surface expression of boudins which may be elongate, with significant sub-surface extent and/or repetitions. Barfuss Corporation considers that there is potential for further economic ruby occurrences in these ultramafic bodies, which might be accessed by deeper excavations and/or underground mining. The 'Vermiculite Prospect' - MCS 235 and MCS 236 - lies 800-1,000 metres northwest of the northernmost Ruby Mine workings. In the early 1980s, Mistral Mines explored for further ruby occurrences in this area. No ruby occurrences appear to have been found, but a significant amount of vermiculite was found associated with a large meta-ultramafic body. Barfuss Corporation considers this occurrence to represent a resource which may be minable once its dimensions, extent and grade have been better assessed. Barfuss Corporation intends to conduct detailed shallow drilling at both the Ruby Mine and Vermiculite Prospects to better locate and define potentially minable resources. Compilation and review of previous data - particularly geological mapping - was conducted as a prelude to this work. This produced a detailed digital GIS dataset. Shallow test drilling has commenced at both the Ruby Mine and the Vermiculite Prospect. The company has purchased a track-mounted Boart-Longyear DB520 drill rig, capable of percussion and core (diamond) drilling to depths of the order of 300-400 metres. Barfuss Corporation has also established a base camp / site office at the site of the old Mistral Mines camp, at the north end of the Ruby Mine workings. Access tracks to, and within, the Ruby Mine and Vermiculite Prospect have been established and maintained.