Exploration Licences 24115 and 24195 Bowgan Project fourth annual report for the period 13 October 2007 to 12 October 2008

Abstract

The Bowgan Project, located 250 km northeast of Tennant Creek, consists of two contiguous exploration licences, EL 24115 and 24195. EL 24196 is located southwest of the other two licences and is reported separately. In April 2006, Hindmarsh Resources Limited (now Mega Hindmarsh Pty Ltd) and Marengo Mining Limited entered into a Joint Venture agreement, whereby Hindmarsh is entitled to earn a 51% interest in the Bowgan Project by spending $200,000 in three years. The primary mineralisation model considered was 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 cross-cutting dolerite or graphitic shale, was also used as a targeting criterion. A review of data identified nineteen targets, for initial ground follow-up, relying on geophysical data (AEM, ATMI) drill hole information and geological interpretation. These targets were thought to contain either the interpreted unconformity with linear magnetic (dolerite) and basement conductor (graphite) features. Exploration activities by the company during the 2008 reporting period consisted of rehabilitation work at 19 historical drilling sites (Marengo-era) and the completion of a biogeochemical (vegetation) sampling program in seven target prospect areas identified by previous geophysical survey.