Exploration licence 24196 (Cresswell) Bowgan Project third annual report for the period 07 December 2006 to 06 December 2007

Abstract

The Bowgan Project, located 250 km northeast of Tennant Creek, consists of two contiguous exploration licences, EL 24115 (Bowgan) and 24195 (Benmara), and EL 24196 (Creswell), which is located southwest of the other two licences. In April 2006 Hindmarsh Resources Limited (now Mega Hindmarsh Pty Limited) and Marengo Mining Limited entered into a Joint Venture agreement, whereby Hindmarsh is entitled to earn a 51% interest in the Bowgan Project by expending $200,000 in three years. Exploration activities completed by the company during the reporting period consisted of the review of ground radiometric and magnetometer surveys and ongoing review and interpretation of geological data by Hindmarsh geologists and by Hawke Geophysics Pty Ltd. The primary mineralisation model considered was for unconformity related uranium and gold at the contact between the crystalline basement rocks (in particular the Murphy Metamorphics) and the overlying sedimentary rocks of the south Nicholson Basin. Identification of a potential chemical trap, such as a cross cutting dolerite or graphitic shale, was also used as a targeting criterion. Exploration activities to date, have concentrated on the identification and delineation of potential chemical trap sites within the tenement area. A preliminary review of data identified nineteen target locations for initial ground follow-up. These were identified as having the interpreted unconformity surface, with co-incident dolerite and basement conductor (graphite) features. Exploration during the reporting period was focussed towards assessment of each of these target locations. Drilling was planned for three target areas within EL 24196 during this period, but mechanical breakdown and the subsequent unavailability of the drilling rig has caused this program to be postponed.