Third annual report on EL 24115 and EL 24195, Bowgan Project, 13 October 2006 to 12 October 2007

Abstract

The Bowgan Project, located 250 km northeast of Tennant Creek, consists of two contiguous exploration licences, EL 24115 and 24195, and EL 24196, which is located southwest of the other two licences. In April 2006 Mega Hindmarsh Resources Pty Ltd (formerly Hindmarsh Resources 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: - Ground radiometric and magnetometer surveys - Drilling of 2 RC drill holes (holes 06RCBG01-02) - Completion of preliminary (orientation) geochemical sampling in two target areas via soil (auger holes) and foliar (vegetation) sampling methods - Ongoing review and interpretation of 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 containing both the interpreted unconformity surface and 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 completed in two of these target areas during this period.