Annual Technical Report EL 29690 for the year ending 3 December 2014

Abstract

EL 29690 is part of Barfuss Corporation's Harts Range Project. The bulk of the project area comprises ELs 29690, 25063 and 25430, plus more recent licences ELs 29950 and 29920. Existing Mineral Claims are also considered part of the project. The Harts Range Project licences cover about 600 square kilometres, of which EL 29690 covers nearly half, surrounding some smaller licences, and the Hart Range Ruby Mine (over which Barfuss Corporation has Mineral Claim coverage). The licence was granted on 04 December 2013 and covers the eastern part of former EL 24552 (surrendered). Underlying geology through most of the project 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 considered an optimal assessment tool for the Project area and selective drill testing with the company's own track-mounted diamond drill rig is being considered. 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. In and proximal to EL 29690 these include pegmatite dykes with very strong uranium-niobium-yttrium-tantalum(-REE) mineral enrichment (assays to over 10% uranium) ('Bobs', 'Cusp' and 'Malex' prospects). 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 extensive recent exploration for, and discovery of, copper-cobalt and nickel-copper mineralisation in the region, by Mithril Resources Limited. 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), and a separate prospective investor has travelled from Germany to inspect the project. A Chinese group has 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 with MMG Limited, which is interested in the project's nickel prospectivity. Activities during the reporting period included additional and on-going prospecting of pegmatite dykes for specific types of muscovite, of prospective interest to the Merck Group, plus prospecting for vermiculite occurrences and regional prospecting for gems and gem materials. Many indications were seen, but none of quality to date. No numerical results are available.