EL 24253 Neutral Junction Project Seventh Annual Report for the period 7 April 2011 to 6 April 2012

Abstract

The Neutral Junction Project consists of a single exploration licence (EL 24253), located 280 km north of Alice Springs. Exploration on EL 24253 is operated under a joint-venture agreement, between Bowgan Minerals Limited, Mega Hindmarsh Pty Limited and the original tenement manager Mithril Resources Limited. Bowgan Minerals Limited is the current operator of the Neutral Junction Project. Two exploration models are currently being investigated by Bowgan Minerals Limited on EL 24253. The first, aims to explore for unconformity-related uranium at the contact between the Early Proterozoic basement rocks and the overlying sedimentary rocks of the Late Proterozoic Georgina basin sequence and the second, aims to explore for gold and base-metals in association with fault re-activations (Alice Springs orogeny) within the prominent NNW-SSE trending magnetic/structural corridor that continues along the entire strike length of the tenement.Work completed during this reporting period included; completion of 41.6 line-kilometres of geophysical surveys (G-859) on-ground at the Tara and Railway targets, completion of two ground spectrometer surveys for a total of 673 point-readings, mapping of outcrop, regolith, flora and sampling of outcrop and soils at Adnera Hill targets. A total of 23 rock chip and 30 soil samples were submitted to ALS Chemex during the reporting period. Literature reviews were conducted for geology in the Neutral Junction-Adnera Hill area and a compilation of recent mapping and sampling data was completed, which included presentation of a summary report for spectrometer and mapping programs completed to date at the Adnera Hill prospect. At Adnera Hill, two surface radiometric anomalies were confirmed by surface surveying with anomalous uranium, thorium and potassium values being determined. Soil and rock chip sampling also determined anomalous gold, silver, base-metals, uranium and thorium values. At Tara, several potential exploration targets were also identified following interpretation of magnetic survey data however incremental weather caused cancellation of a surface radiometric survey aimed to confirm a surface radiometric anomaly in the same target area. Interpretation of data from the 2011-12 reporting period will continued into the next reporting period, with the aim of designing a first-pass program of drill testing of targets at the Adnera Hill and Railway (NJM008) prospects. Follow-up soil sampling and geological mapping is also proposed for a number of Adnera Hill targets. Further exploration work involving more detailed geophysical surveying, outcrop and soil sampling are also proposed at the Tara and Target Area 'B' prospects during the 2012-13 reporting period.