EL 23579 West Mount Fitch annual report on EL 23579 for the year ended 29 December 2007

Abstract

This tenement was applied for in early 2002 following the intersecting of major base metal mineralisation in drill holes near the Mt Fitch prospect located to the east. It is considered prospective for uranium, copper, lead, zinc, cobalt and nickel mineralisation, especially as the mineralisation intersected in the adjoining tenement (ERL125) dips westward toward this tenement. During the first two years of exploration, previous exploration and drill data was compiled and the prospectivity reviewed. Ownership is Compass Resources NL 90% and Guardian Resources Pty. Ltd. 10%, with Compass being the operator. Compilation of available exploration data into GIS format has been progressing, with new GIS software purchased. Further drill evaluation of the Mt Fitch South base metal prospect (on the northern boundary of the tenement) indicates it has potential to extend into this tenement at depth, however several of the recent drill holes failed to penetrate to target depth due to poor ground conditions requiring redrilling in the new year. The tenement was covered by new digital aerial photography.