Annual Report for EL 25430 for the period ending 13 March 2008

Abstract

Barfuss Corporation's Harts Range Project is comprised of EL 24552, ELs 25063 and 25430, EL application 25764, and a number of Mineral Claims within the area of ELs 25063 and 25764. The total area under title or application is approximately 677 square kilometres, of which EL 24552 comprises the bulk, at 642 square kilometres. EL 25430 covers less than 32 square kilometres. The Harts Range Project lies in the southeast of the Northern Territory, roughly 100 to 140 kilometres northeast of Alice Springs (170 to 260 km by road, via the Plenty Highway). The project covers much of the central Harts Range, which is dominated by the Riddoch Amphibolite Member of the Proterozoic Arunta Block. The geology includes other high-grade metamorphics, predominantly gneisses, of Divisions 1 and 2 of the Arunta Block. Topography is frequently rugged. The Harts Range was a major area of pegmatite-related mica mining in the early-mid- 20th century. Other mining in the project area has generally been very small scale, targeting semi-precious gem minerals. High-grade copper-gold mineralisation was investigated by Tanami Gold NL at its Copper Queen group of prospects in 2001-2005, and Power Nuclear Corporation of Japan (PNC) explored the area for uranium in the 1990s. The Oonagalabi copper-lead-zinc deposit, just south of EL 24552, was extensively investigated in the 1970s. The Jervois copper mineralisation, more than 100 km to the northeast, occurs in similar or related rocks to those in some parts of the tenement area and was mined intermittently from the 1960s to 1980s. The Harts Range ruby deposit was found in the late 1970s and mined from then into the early 1980s by Hillrise Properties and Mistral Mines. Barfuss Corporation has mineral claim coverage of the ruby mine, which is surrounded by EL 25764, and has its site office and camp located there. Barfuss Corporation is in ongoing discussions with the Central Lands Council regarding the establishment of an ILUA covering all of the company's Harts Range Project leases. Pending the results of this, a substantial amount of non-invasive work has still been possible. Several areas have been subject to reconnaissance investigations, including mapping, rock-chip sampling and ground spectrometer surveys. Only the northern part of EL 25430 has been investigated to date. Follow-up of anomalies identified in open-file airborne geophysical data has located a trend of strong thorium and rare earth element anomalism, with some associated uranium anomalism. The company plans to fly a detailed geophysical survey (magnetic and radiometric) over much or all of the Harts Range 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 plans to purchase its own geophysical equipment for the surveying.