Relinquishment report on the 5 blocks relinquished August 2007

Abstract

This document is the Second Relinquishment Report for Exploration Licence 23722. The document reports on field activities during the period 18th September 2003 through to 17th September 2007. Compass have taken over full responsibility for management of exploration activities on the tenement. The past exploration has been primarily targeting uranium and, to a lesser extent, base metal mineralisation. Some regional sampling of stream sediments and rock chip for gold has been recorded. The main target for EL 23722 is gold mineralisation within the folded Burrell Creek Formation and to a lesser extent base metal mineralisation at the Coomalie Dolomite/Whites Formation interface. Known gold mineralisation has been reported from the south and east of the tenement. Compass's main target is base metals and uranium mineralisation associated with the lower stratigraphy in the east of the tenement. The only exploration carried out within the area being relinquished is two auger soil sample traverses testing previously recorded elevated gold /arsenic anomalism. A diesel powered wheeled DINGO auger rig was used to drill holes to 100cm producing B and in some cases C horizon material. Holes were drilled at 25m centres. Samples were assayed for Arsenic and only for gold if As >100ppm. Other known gold mineralisation nearby showed a strong correlation with As. Assays returned no samples with >100ppm As, thus no assaying for gold was carried out. No significant As pathfinder mineralisation nor gold mineralisation was detected from samples collected within the area relinquished.