Harts Range Project Annual Technical Report for Exploration Licence 29950 for the year ending 22 April 2017

Abstract

Exploration Licence 29950 is part of Barfuss Corporations Harts Range Project. The bulk of the project comprises of EL's 29690, 25063, 25764 and 25430, plus more recent licence EL 29950. Existing Mineral Claims are also considered part of the project. The Harts Range Project Licences cover an area of about 600 square kilometres. Underlying geology throughout 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 geological mapping, extensive rock-chip sampling and detailed ground spectrometer surveying in a number of areas. Detailed air-borne geophysical surveying is considered an optimal assessment tool and is being considered for use in the project area as well as selective diamond core drilling with the company's own track-mounted drilling rig. More recent work has focused to some extent on specialised prospecting for muscovite mica deposits, bases on interest expressed by the Merck Group in Germany. A large number of prospects have been identified. In and around EL 29690 these include pegmatite dykes with a very strong uranium-niobium-yttrium-tantalum (-REE) mineral enrichment with assays of over 10% Uranium ('Bobs', 'Cusp' and 'Malex' prospects). Merck Group (Germany) is still showing a significant interest in the muscovite deposits in the licence areas. Merck Group representatives have visited the project site and taken several samples for analysis from several areas, with a number of follow-up bulk samples sent to them on request. This was also done for a nearby vermiculite prospect (Surrounded by EL 25764 and 25063). An extensive exploration by Mithril Resources Limited has also been conducted on this area with the discovery of copper-cobalt and nickel-copper mineralisation as well. Barfuss Corp. has been in on-going negotiations with a number of companies regarding possible investment in the project. Including Merck Group, Mithril Resources Ltd, as well as private investors from Germany who have travelled to the project site. A Chinese group has also considered 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 projects Nickel prospects. Activities during the reporting period include on-going prospecting of pegmatite dykes for specific types of muscovite, which is of interest to Merck Group. Plus further prospecting for vermiculite deposits and regional prospecting for various gem deposits. Many indications have been found however none of an economical quality at this stage.