Harts Range Project Annual report for EL 24552 for the period ending 25 August 2009

Abstract

EL 24552, plus licences 25063 and 25430, comprise Barfuss Corporation's Harts Range Project, covering more than 700 square kilometres. The licence was granted on 26 August 2005. Underlying geology through most of the area consists of high-grade metamorphic rocks of the Arunta Block, including the Harts Range Group (part of the Late Proterozoic to Cambrian Irindina Province) , with older Aileron Province rocks in the east ('Entia Dome') and west (Strangways Metamorphic Complex, including younger deformation in the Gough Dam Schist Zone). Field activity to date has included reconnaissance mapping, extensive rock-chip sampling and detailed ground spectrometer surveying in a number of areas of interest. Detailed air-borne geophysical surveying is planned. A significant number of prospects have been identified. These include:- rare earth element ('REE') prospects (+thorium, +/-uranium), principally the 'Spinifex Gully' group of prospects in EL 25430, extending into EL 24552 (assays up to 11.9 % REE, 1140 ppm uranium, 4.72 % thorium); the extensive 'Copper Queen' group of copper-gold prospects, investigated previously by Tanami Gold NL, mostly in EL 24552 but extending into EL 25430; two meta-ultramafic bodies ('Plug 1' and 'Plug 2') in the west of EL 24552, with indications of nickel-chrome (+/- platinum-palladium) anomalism (reconnaissance assays 0.2-0.27 % nickel over 125 metres); and several pegmatite dykes in the east of EL 24552 and EL 25063 with very strong uranium-niobium-yttrium-tantalum(-REE) mineral enrichment ('Bobs', 'Cusp', 'Malex', 'Pearly Gates' prospects) (assays over 7 % uranium). Prospectivity for other minerals is indicated by, for example, the Harts Range Ruby Mine and a near-by vermiculite prospect (surrounded by EL 25764) and the Oonagalabi copper-zinc prospect, a couple of kilometres south of EL 24552. During the current reporting period, field work - and therefore 'numerical' results (sampling, drilling, surveying) - was largely prevented due to a protracted legal dispute with the company's principal former financial backer resulting in all funds earmarked for on-ground activity being 'frozen'. This dispute was concluded after the reporting period, when Barfuss Corporation was finally able to bring the matter to court, whereupon the parties rapidly settled out of court, largely in Barfuss' favour. Barfuss Corporation is now free to spend its own funds on its projects and/or seek other funding or partners. The company regards the project as highly prospective and is keen to resume significant exploration activity on it. Discussions with a number of prospective joint venture partners had begun even before the legal dispute was settled.