EL 23677 Fourth annual report to 29 July 2007

Abstract

The fourth anniversary of this tenement occurred on 31 July 2007 and three of the remaining blocks were relinquished, as organised by McColl Exploration and Mining Title Services. Thus leaving four blocks retained The Heads of Agreement for a joint venture between Compass Resources NL and the tenement holders was signed on 24 July 2006 and remains current. The tenement is located west of Batchelor and straddles Litchfield Park Road allowing reasonably easy access via local tracks. These are only usable during the dry season. Initially the original tenement holders applied for the EL targeting base metals and gold. Compass Resources NL recognises the potential for both of these; gold at the Ford Grid and base metal in the vicinity of the Hoppy Anomaly in the southeast corner. The Hoppy anomaly was rediscovered by Uranerz in the 1980s having been initially tested by TEP in the 1960s. In the 1990s two drill holes were put down by Nicron Resources/Woodcutters in the same vicinity. Compass Resources are compiling all drill hole data, soil sampling results and geophysics from previous work at Hoppy. These were used to select drill targets drilled during the reporting period. The drill target at the Ford Grid gold prospect has been well defined by soil and shallow auger drilling during exploration in years 2003 and 2004, as described in earlier Annual Reports for this tenement. Two holes were drilled at the Hoppy Prospect for a total of 162 metres with both holes angled at 60 degrees to drill through the target Whites Formation/Coomalie Dolomite contact. . Some anomalous uranium mineralisation was reported in both holes mainly within dolomite and just beneath the contact with shales. Two scissor holes for a total of 144 metres were drilled at the Ford prospect targeting gold mineralisation associated with quartz veining. Drilling was within the Burrell Creek Formation drilling through mainly shales with quartz veining but in hole 06FG02 finishing in greywackes and tuffs. No anomalous gold mineralisation was returned. This initial drilling has not been too encouraging for gold mineralisation at Ford but the anomalous uranium at the Hoppy Prospect will need follow up work as will its potential for base metal mineralisation.