Technical and Annual Report for Compass Creek Project EL 25399 and EL 25436 Pine Creek Goldfield 12 months ending 27th February 2023

Abstract

The Compass Creek Project is held by IsMins Pty Ltd (Ismins), a private Australian company. Ismins is a wholly owned subsidiary of KNX Resources Limited, an unlisted Australian public company (owned by Essex Resources Inc). The Compass Creek Project comprises two exploration licences (EL 25399 & EL 25436) located in the central-northern part of the Pine Creek Goldfield in the Northern Territory, Australia. The two tenements total 15 sub-blocks and cover an area of 48 km2. The Compass Creek Project is located about 130 km south-east of Darwin, 55 km NNW of Pine Creek, and about 15 km east of Ban Ban Springs Station. Ismins holds about 90% of EL 25399, and 100% of EL 25436. The exploration target at the Compass Creek Project is a gold and/or tin deposit along with possible credits of silver and base-metals. Exploration to date has not found ore grade mineralisation on the surface. However, there are large areas of strong and broad structurally controlled alteration, with quartz-sulphide veining and locally significant hydrothermal breccias. Extensive rock chip sampling shows very high pathfinder elements (As, Pb, Bi & Sb) and anomalous gold, silver and tin. The potential for a buried gold and/or tin system is supported by broad areas of sub-surface anomalism of airborne electro-magnetic and IP/resistivity that underlie the areas of alteration and geochemistry. The Compass Creek area has never had a consistent and targeted exploration effort by previous explorers; and it has never been drilled. Mining companies were prevented from exploring in the Compass Creek area during the modern era of gold exploration (~1975 to present). A government regulation known as the 'Mount Wells Policy Reserve' restricted exploration to small scale prospecting and mining only. The regulation was in effect from 1964 to June 1988. However, even after the regulation was lifted in 1988, the presence of many mineral claims maintained by multiple prospectors, had the effect of discouraging major explorers from entering the area. Hence, no significant work was done in the Compass Creek area until Ismins acquired EL 25399 in 2007. Apart from three small tin mines/diggings, there has been no physical exploration, such as trenching or drilling, conducted on the Compass Creek Project. Most early exploration around the Compass Creek area was focussed on trying to find gold and/or tin deposits, along with some base metal and uranium exploration. The closest significant mines are the Mount Wells tin mine (Cu Au), located about 8 km southeast, and the Woolwonga and Yam Creek Group of gold mines located about 7 km west and 10 km southwest of the Compass Creek tenement respectively. The Spring Hill and Union Reefs mines are located about 17 km and 30 km SSE (respectively); along the strike of the Pine Creek Shear Zone. The Union Reefs mine produced about 2 million ounces of gold, and is currently the site of processing the ore from the Cosmo Howley mine. The Union Reefs mine is could reopen in the near future. The Woolwonga, Yam Creek and Spring Hill mines have each produced in excess of 0.25 million ounces of gold, and are in various stages of exploration and consideration to re-open. Total gold production from the Pine Creek District is thought to exceed 5 million ounces, and an equal resource remains in current prospects.