Annual report EL 25399 Compass Creek period 10 April 2010 to 9 April 2011

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. In 2010 the name of the tenement holder was officially transferred to IsMins Pty Ltd (IsMins). 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. In January 2010, IsMins signed an 'option to purchase agreement' with Spundaily Pty Ltd concerning an adjoining tenement known as EL 25436 (Mavis Project). This tenement consists of two sub-blocks that are located on the south boundary of EL 25399, just south of the old Mavis tin mine. Spundaily was originally granted EL 25436 (Mavis Project) in February 2007. The two sub-blocks total about 6.4 km2 and bring the combined project area to about 60 km2. The Compass Creek project is within the old 'Mount 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. Most early exploration around Compass Creek was focussed on trying to find gold and/or tin deposits. The closest significant mines are the Mount Wells tin mine, located about 8 km south-east, and the Woolwonga and Yam Creek Group of gold mines located about 7 km west and 10 km south-west of Compass Creek respectively. Exploration during the 2010 field season consisted of a detailed ground magnetic survey over the airborne magnetic anomaly in EL 25436 and the location of the airborne EM anomaly over the Mavis mine. This was followed by detailed mapping over the magnetic anomaly and the area of the airborne EM anomaly. Extensive rock chip sampling accompanied stream and soil sampling over the same area. This work provided encouraging results to follow-up in 2011. EL 25399 and EL 25436 have 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-tungsten-copper-gold deposits similar to Mount Wells. IsMins plans to drill between three and six angled holes on each of the four targets, to depths of between 100 and 350 metres. Total drilling is estimated at 3,600 metres of reverse circulation percussion drilling and 400 metres of diamond core drilling.