EL 24115 and EL 24195 Bowgan Project Fifth annual report for the period 13 October 2008 to 12 October 2009

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 on 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. Proposed exploration of both tenement areas were subject to negotiations between the current operator, Mega Hindmarsh Pty Limited and future joint-venture partner Bowgan Minerals Limited. This discussion lead to the formalisation of a Heads of agreement, but no field work was carried out. A formal meeting was held between Mega Hindmarsh Pty Limited and officers of the Titles Office, Minerals and Energy Group of the Northern Territory Department of Regional Development, Primary Industry, Fisheries and Resources on Tuesday, 9th June 2009, with exploration proposals, tenement and covenant variation issues being discussed for the future operation of EL 24115 and 24195.