EL 24472 West Finniss Annual report from 10 November 2009 to 9 November 2010

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 EL 24472 covers work on the tenement during the period 10 November 2009 to 9 November 2010. 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 2010/2011 on the tenement. EL 24472 is strategically located adjacent to current operations (Browns Oxide) and a number of ongoing feasibility studies at Area 55, Mt Fitch Cu and Browns Sulphide. HAR is currently reviewing all polymetallic potential of the district and EL 24472 forms part of the exploration program for future mine development. Up until 30 April 2009, work carried out by Compass Resources comprised the continuation of field mapping and the update of the GIS database. Since 1 May 2009, HAR has been reviewing the work carried out by Compass on this EL (and others) so that work programs could be put in place during subsequent field seasons. Geophysical surveys were partially completed during the 2009/2010 year. As at the time of this Report the receipt of the data is awaited. As this will be a quite large data set containing EL 24472 and surrounding contiguous tenements of the holder, one complete large data set will be submitted once the final data is received. This is expected to be early in 2011. Part modelling of some preliminary data is already underway and will be part of next years' annual report.