EL 24196 Bowgan Project Fifth annual report for the period 8 December 2008 to 7 December 2009

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) 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. 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 several target locations, resulting in an initial ground exploration program via geophysical methods. These were identified as having the interpreted unconformity surface, with co-incident dolerite and basement conductor (graphite) features, Exploration to date has been focussed towards further assessment of each of these target locations. Negotiations for a joint-venture agreement with Bowgan Minerals limited commenced during the reporting period. Field exploration work on EL 24253 by Mega Hindmarsh Pty Limited has been halted during the reporting period directly as a result of these negotiations.