Harts Range Project annual report for exploration licence EL 25063 for the period ending 19 November 2008

Abstract

Barfuss Corporation has conducted a substantial amount of non-invasive work on EL 25063, pending the results of discussions with the Central Lands Council regarding the establishment of an ILUA covering all of the company's Harts Range Project leases. Several areas have been subject to reconnaissance investigations, including mapping, rock-chip sampling and ground spectrometer surveys. The area of EL 25063 was investigated previously by Barfuss Corporation and several specific prospects are now covered by some of the company's Mineral Claims. Much of the work on the licence has been adjacent to these prospects and this work has identified some anomalies needing further investigation. Bobs Prospect is of particular interest. It was originally identified by PNC in the 1990s but received minimal investigation, as it lay outside PNC's licences. High-grade radioactive mineralisation has been identified here and is 1.6 kilometres along strike from similar mineralisation found in the adjoining Barfuss Corporation Exploration Licence. Rock-chip assays include some highly anomalous results. This work is documented in detail in previous Annual Reports. Very little work was conducted in the current reporting period. Since late in the prior period (circa September 2007), the company has been in a protracted legal dispute with its principal financial backer, who is based the USA. All funds intended for the current year's expenditure were legally frozen at the start of this dispute, which effectively halted all proposed field operations and other exploration-targeted work until the dispute was resolved. Legal and contractual details have prevented Barfuss Corporation spending its own funds on the project or seeking other funding or partners. Despite the legal dispute discussed above, the company has continued with a certain amount of field and other exploration activity. Expenditure attributable to EL 25063 includes costs involved in several site visits during the period, plus project maintenance, plus a proportion of $170,000 paid for the spectrometer and stinger ordered previously for the proposed in-house helicopter-borne geophysical surveying of the whole project area. Proposed work for the coming reporting period is as it was for the current one. The company plans to fly a detailed geophysical survey (magnetic and radiometric) over much or all of the project area. This will help identify areas warranting more detailed investigation, and will aid in the geological interpretation of areas already of interest. A low-level, helicopter borne, 50-metre-line-spaced magnetic and radiometric survey is planned. To save time and reduce costs - thereby allowing for surveying of a larger area - Barfuss Corporation is purchasing its own geophysical equipment for the surveying.