ERL 146 The Embayment Annual report for the year ended 18 September 2009

Abstract

Compass Resources Limited was placed in voluntary administration in January 2009 and then placed under a deed of company arrangement from 1 May 2009 for a period of 12 months. This report for ERL 146 covers work on the tenement during the period 19 September 2008 to 18 September 2009. Under the terms of the JV agreement between Compass Resources Limited and HNC, a wholly owned subsidiary of HNC, named HNC (Australia) Resources Pty Ltd (HAR) will continue exploration activities in 2009/2010 on the tenement. ERL 146 surrounds the Browns Mining leases and covers the old Rum Jungle Mine Site. It is located approximately 7 kilometres north-northwest of the town of Batchelor. During the reporting period several drilling programs were undertaken utilising RC technique. A total of 37 RC holes for 1247 metres were drilled. These holes were primarily for the purposes of resource definition for the Browns Sulphide project and exploration for additional oxide mineralisation along strike from Browns Oxide pit.