EL 24464 Mt Mabel second annual report for year ended 10 April 2008

Abstract

This tenement is considered prospective for uranium, gold and base metal sulphide mineralisation. During the first year of tenure, two reverse circulation drill hole were completed at the Kylie Prospect. A large proportion of time and expenditure was devoted to compilation of all locatable exploration data into a GIS format. An application for 21 blocks (60 square kilometres) was made on 17 November, 2004. This area was granted as EL 24464, effective 2nd April 2006. Ownership was originally Compass Resources NL 90% and Guardian Resources Pty. Ltd. 10%. Compass now owns Guardian Resources Pty Ltd, so has effective 100% ownership of the tenement. The tenement is located on the Pine Creek 1:250,000 map sheet (5270), Batchelor 1:50,000 and Rum Jungle 1:50,000 topographic maps (5171-4 and 5071-1respectively). Compass Resources drilled a total of 740 metres in 10 RC holes at the SE Kylie prospect. The majority of holes intersected weakly anomalous uranium mineralisation associated with disseminated pyrite close to the shale -dolomite boundary.