Annual Technical Report for exploration licence group GR132/09 EL 25063 and EL 25430 for the year ending 21 February 2013

Abstract

Recent EL application areas, plus existing Mineral Claims, are also considered part of the project. Former, EL 24552,, surrendered during the period, comprised the bulk of the project area previously. Licences 25063, and 25430 were granted, respectively, on 20 November 2006 and 13 March 2007. Underlying geology through most of the projet 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, as is selective drill testing with the company's own track-mounted diamond drill rig. More recent, work has focused to some extent on specialised prospecting for possible muscovite mica resources, based, on interest expressed by the Merck Group (Germany)., 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; possible, under-cover extension into EL 25430 from the extensive 'Copper Queen' group of copper-gold prospects, investigated previously by Tanami Gold NL; and pegmatite, dykes in EL 25063 (and adjacent application, 29690) with very strong uranium-niobium-yttrium-tantalum(-REE) mineral enrichment (assays to over 10 %, uranium). Significant interest has been shown by the Merck Group (Germany) in the muscovite deposits in, the licence areas. Merck representatives have visited the project and sampled several areas for analysis,with a number of follow-up bulk samples sent to them, on request, for further analysis. Prospectivity for other, minerals is indicated by, for example, the Harts Range Ruby Mine and a near-by vermiculite prospect, (surrounded by ELs 25764 & 25063) and the Oonagalabi copper-zinc prospect, a couple of kilometres south, of former EL 24552., Barfuss has been in on-going negotiations with a number of other companies regarding possible investment, and joint ventures, including the Merck Group (noted above), A private investor has committed to satisfy all, expenditure commitments for at least the next 12 months, and a separate prospective investor has travelled, from Germany to inspect the project. A Chinese group is also considering investing in parts of the project, (via DDM Capital, a Melbourne-based corporate advisory firm) and Barfuss has visited China for, discussions. A Confidentiality Agreement has been signed (after the current reporting period) with MMG, Limited, which is interested in the project's nickel prospectivity., Activities during the reporting period included additional selective sampling of muscovite from pegmatite, dykes and despatch of samples for testing to the Merck Group in Germany, and drilling of two shallow, reconnaissance diamond drill holes (for no significant results). Additional fieldwork by Barfuss Corporation, has primarily been reconnaissance mapping, prospecting and selective specimen sampling. No samples, were submitted for analysis, apart from those sent to Merck, and pending provision of results by Merck, no, numerical results can be provided., The company regards the project as highly prospective and is keen to resume significant exploration activity, on it.