Harts Range Project Annual Technical Report for Mineral Claim Group GR131/09 for the year ending 21 August 2012

Abstract

Mineral Claims MCS 235-244, MC 24748-24761 and MC 25308-25310 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, much work has focussed on discussions and planning with a prospective Chinese investment group interested primarily in the Vermiculite prospect. Barfuss has visited China and highpurity vermiculite concentrates have been sent there for assessment and testing. Work at the Ruby Mine has included very small-scale selective test mining, and extensive research and assessment of value-adding techniques including on-site cutting and polishing and heat-treatment options for lower-quality ruby corundum product. Significant interest has been shown by the Merck Group (Germany) in the muscovite deposits in the Barfuss Harts Range Project and Merck representatives have visited the project and sampled several areas for analysis, with a number of follow-up samples sent to them, on request, for further analysis, though no numerical results have yet been forthcoming.