Annual report Exploration Retention License 148 Batchelor November 2007

Abstract

ERL 148 was originally applied for by Compass Resources NL and Guardian Resources Pty. Ltd on 16 April, 1996 as 14 blocks to replace EL 6640. The tenement was granted effective 26 November, 2001 covering an area of 2005 hectares. The Exploration Retention Licence was granted to Compass Resources (100%) with joint venture agreements giving equity as Compass 90% and Guardian Resources Pty. Ltd. 10%. Compass now effectively owns 100% equity in the Tenement following the acquisition of Guardian Resources. The major portion of the Area 55 base metal resource is located in the north western portion of the tenement, extending northward into ERL125. A major programme of RC percussion drilling and diamond drilling was undertaken during the period under review. This work consisted of an extensive resource definition program on the tenement plus a more limited deposit extensional drilling program. This drilling will be completed during the next field season. The following drilling was undertaken: Sixty eight RC holes for 2,381 metres; Three HQ diamond holes (328 metres) for resource definition; and Six HQ diamond holes (572.3 metres) for metallurgical purposes Compilation of all data into a GIS database continued.