EL 25399 Compass Creek Annual report period 10 April 2009 to 9 April 2010

Abstract

Hapsburg Exploration Pty Ltd was granted EL 25399 in April 2007. The tenement, known as Compass Creek, consists of 16 sub-blocks and is about 53.4 km2 in area. The tenement is located about 130 km south-east of Darwin, 55 km NNW of Pine Creek and about 15 km east of Ban Ban Springs. The Compass Creek tenement is within the old Mt. Wells Policy Reserve which existed from 1964 to June 1988. This Policy Reserve restricted exploration in the area to small scale prospecting only. Hence no significant work was done by major exploration companies during this period. Hapsburg's EL 25399 has significant exploration potential for gold, silver and base metal mineralisation associated with hydrothermal breccias and structurally controlled quartz-sulphide veins. Also there is potential for stockwork or greisen style tin deposits (+/- basemetals and gold). The significant airborne electro-magnetic (AEM) anomaly at the Mavis Prospect and the smaller central anomaly should be tested by deep drilling (>250m). The magnetic anomaly just south-west of the Mavis tin mine should be drilled to test for a magnetite or pyrrhotite skarn (or greisen) with possible Sn and Au mineralisation. The potential for uranium is unknown, but it should be tested where uranium could have been released with magmatic volatiles, and may have been enriched in structures and/or sediments where a reducing environment (graphitic schist or mafic dyke) is cut by the structure and hydrothermal system. The AEM anomaly at the Mavis Prospect could also be a uranium target if the conductor is caused by graphitic schist.