Harts Range Project Annual Technical Report for Exploration Licence Group GR132/09 EL 25063 and EL 25430 for the year ending 21 February 2016

Abstract

Exploration Licences 25063 and 25430 are part of Barfuss Corporation's Harts Range Project. The project also includes ELs 29690 and 25764, 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 ELs 25063 and 25430 cover little more than 10%. EL 25063 encloses or surrounds the Mineral Claims and the Hart Range Ruby Mine (over which Barfuss Corporation has Mineral Claim coverage). Licences 25063 and 25430 were granted, respectively, on 20 November 2006 and 13 March 2007. 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 general prospecting, and detailed ground spectrometer surveying in a number of areas of interest. Detailed airborne 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. 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 EL 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 and 25063), and the extensive recent exploration for, and discovery of, copper-cobalt and nickelcopper 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 focussed primarily on fieldwork exploration for extensions or repetitions of the known mineralisation (e.g. vermiculite, REE/thorium, as discussed above), and extensive prospecting for gems and gem materials, with in-house assessment of the quality of materials found. No samples were submitted for outside analysis and no numerical results were generated. The company regards the project as highly prospective and is keen to conduct significant exploration activity on it.