Harts Range Project Annual technical report for exploration licence group GR131/09 for the period ending 21 August 2009

Abstract

Mineral Claims MCS235-244, MC24748-24761 and MC25308-25310 form part of Barfuss Corporation's Harts Range Project. The MCS claims were granted on 21 June 2001 and the MC claims were granted on 22 August 2007. The claims range in size from 16 to 40 hectares. The MCS claims are contiguous and cover the Harts Range Ruby Mine workings, about 140 km northeast of Alice Springs (260 km by road). The MC claims are in the surrounding area, all within about a 4 km radius. Underlying geology is dominated by high-grade metamorphic rocks of the Arunta Block, principally the Harts Range Group (part of the Late Proterozoic to Cambrian Irindina Province), including the Riddock Amphibolite. Some of the eastern claims are on PalaeoProterozoic Entia Gneiss Complex rocks (Aileron Province) on the flank of the Entia Dome. The 'Entire Anorthosite', within the Riddock Amphibolite, hosts the rocks containing the ruby occurrences which the ruby mine has targeted. The same stratigraphy also hosts a vermiculite deposit, covered by the northern MCS claims. Field activity to date has included detailed mapping, extensive rock-chip sampling and detailed ground spectrometer surveying in a number of areas of interest. Drill testing at the Ruby Mine and Vermiculite Prospect has commenced, using the company's own track-mounted drill-rig. Detailed air-borne geophysical surveying is planned. The prospectivity of some areas has been discounted by work to date but some remain significantly prospective. These include:- the Ruby Mine, where historic workings were rarely more than 2-3 metres deep, on ruby-bearing pods or boudins of meta-ultramafic within the anorthosite, and preliminary drilltesting by Barfuss Corporation has shown continuity of the host rocks to depth and has intersected rubycorundum; the Entire Creek Vermiculite Prospect where a variable vermiculite zone of the order of 200 metres by 5-10 metres is interpreted on the margin of a large meta-ultramafic body; the Entire Creek Garnet Sand Prospect, where detailed mapping and preliminary sampling suggests potential for an alluvial garnet sand deposit; an un-named prospect (MC 24752) where minor copper mineralisation, possibly associated with magnetite-rich rock, has been found proximal to metasediments, a calcsilicate unit and a linear magnetic feature more than 7 km long; and pegmatites with radioactive mineral potential. During the current reporting period, field work - and therefore 'numerical' results (sampling, drilling, surveying) - has been 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'. [Most of the work documented in this report pre-dates the reporting year of 22 August 2008 to 21 August 2009. This dispute was not concluded until late 2009 (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 its Harts Range leases as highly prospective and is keen to resume significant exploration activity.