EL 27788 Miles Road East Annual report for the period 11 May 2010 to 10 May 2011

Abstract

In the last few years Compass Resources compiled all historical exploration data for the Rum Jungle Mineral Field into a true GIS system. Exploration drilling data was collated and entered into the Datashed database and evaluated using ARC GIS and Micromine. In addition all historical maps relevant to EL 27788 were geo-referenced in ARC. As mentioned above the database contains a single historical drill hole within the Miles Road East tenement. The detailed aeromagnetic and radiometric surveys flown in the 1990s were merged with the regional geophysical data sets and reprocessed. One of the prime benefits of compiling so much historical exploration data is that it generates a better understanding of both the regional geology as well detailed geology of individual prospects. At Rum Jungle this has resulted in a complete re-think of the timing and controls to mineralisation. Based on the review of the historical exploration data there are two distinct primary mineralisation events at Rum Jungle: (a) Lower Proterozoic stratiform base metal event (Browns, Area 55, possibly Mt Fitch sulphides); (b) Mid Proterozoic structurally controlled uranium-gold-platinoid-base metal event (all other prospects). The mid Proterozoic event is associated with a series of stacked, essentially bedding parallel thrust surfaces. These surfaces are characterised by extensive zones of brecciation and variable but often intense hydrothermal alteration. Alteration includes silicification, haematite dusting, specular haematite, apatite, chlorite and disseminated pyrite. Within the Miles Road East tenement these thrust surfaces separate the major lithological units. Extensive sills and non-concordant bodies of Zamu dolerite intrude along the thrust sheets and these are also variably altered and provide some age constraints on the structural and mineralising events. The extent of thrusting and brecciation has been confirmed through field checking and reviewing historical drill logs. Given the improved understanding of the prospectivity of EL 27788 it was decided to fly the area of the tenement (along with all other Compass tenements at Batchelor) with helicopter borne aeromagnetics and EM. The survey was completed by GPX Surveys in late 2010 with flight lines at 150m spacing, orientated east-west and with a terrain clearance of 30m. East-west tie lines were spaced at kilometre intervals. This generated approximately 24 line kilometres of data within EL 27788. Processing of the data commenced in early 2011 and unfortunately an error was detected in the helicopter altimeter readings used in the survey requiring correction and considerable reprocessing. At the time of writing this report the error in the data had finally been rectified and the data was at a consultant geophysicist being processed. Compass Resources was yet to receive the final, corrected data from this extensive survey.