EL 27638 Miles Road Annual Report for the period 28 May 2011 to 27 May 2012

Abstract

Exploration Licence 27638 is considered prospective for uranium, gold, and base metal sulphide mineralisation. 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 Deed was extended. On 15 November 2011 the Deed was terminated and Compass came out of Administration. During Year 1, EL 27638 was flown with detailed airborne magnetics and EM to help define potential drill targets. Due to significant difficulties encountered in processing the EM data from the flying carried out in late 2010, the data was not successfully processed until September 2011 with the data being supplied to DoR in October 2011. As the geophysical data was to form the basis of selecting new targets for further exploration within the licence and it was not available no field work was undertaken in 2011. A consultant geophysicist modelled the geophysical data in late 2011/early 2012 and has identified a series of EM anomalies requiring field evaluation. Given the success of the airborne geophysical surveys it has been decided to fly a falcon gravity survey over the Rum Jungle district during 2012. As EL 27638 is very small (3 sub-blocks/2.76sq.km) it is proposed to seek amalgamation with adjoining Compass licences. However this has been delayed due to issues with ownership of the licences.