Exploration Licence 24253 Neutral Junction Project Eleventh Annual Report for the period 7 April 2015 to 6 April 2016

Abstract

The Neutral Junction project consists of four exploration licences; EL's 24253, 28615, 29475 and 30797, all located in the Barrow Creek-Mount Skinner area 220-280km to the north of Alice Springs. EL 24253 (Neutral Junction), the subject of this report, 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. Bowgan Minerals Limited is currently exploring for economic occurrences of copper, gold, silver, copper and base-metal and other elements within an iron oxide-copper-gold ('Tennant Creek-style' IOCG) deposit setting and for uranium within an unconformity-related deposit setting. Exploration activity was conducted to explore existing targets that cross both EL's 29475 and 24253 during the current reporting period. This included; completion of 127.9 line-kilometres of ground magnetic surveying, completion of geological mapping and outcrop sampling, which included the collection of 55 rock chip samples across both EL's. Testing of each of the 170 rock chip samples collected at Neutral Junction project to date using a Niton XRF was also completed during the final two months of the reporting period. Preliminary review of the ground magnetic dataset, cutting and cataloguing of rock chips, submission of 24 samples to ALS Chemex for chemical analysis and interpretation of results was completed at the conclusion of the field program. A review of datasets commenced for development of a more detailed conceptual model for the immediate targets and their significance within the broader Adnera Hill area which identified a significant new vector trend between the TJ's Find target and Skarn targets. In consequence, ground magnetic surveying and geological mapping conducted during June-July 2015 discovered a significant new breccia occurrence at Breccia Hill and follow-up assaying of rock chips confirmed this unit to be highly anomalous for both precious and base-metals over a strike extent of more than 5kilometres. In summary, the discovery of Breccia Hill is considered to be the most significant exploration target identified at Adnera Hill to date. First-pass exploration conducted at the Buggy Camp target area has identified some exploration potential in the area, with detailed interpretation of the ground magnetic and geological mapping datasets currently on-going.