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re: 2mill oz peru 98g per t 7http://sa.iguana2.com/cache/c6435a0b768c864e0a6b908a692e4aae/ASX-CMR-336767.pdf
AMERICA'S PROGRAMME
Peru Projects
The Compass Board considered that the Company's programme in North America comprising at the
time a part interest in the World Beater Project was too small a critical mass to deliver value to
shareholders.
It was decided to examine whether to reduce to a small non-contributing interest in this project or to
increase the critical mass through the acquisition of a high quality project in the America's region with
a view to funding acquisition and exploration of all these projects from a Canadian capital raising.
Emphasis was placed on Peru due to the excellent gold exploration and development success in that
country over the past ten years (Figure 2). It resulted in the following agreements:
Compass Resources and AKD Limited agreed to pool their respective landholdings at World Beater
California and Chinguela, North Peru. The ownership ratio of the pooled properties was agreed as
70% Compass and 30% AKD reflecting an established resource and an attractive gold exploration
target.
Compass on behalf of Compass/AKD then negotiated the acquisition from Newmont Peru of the high
potential Nangali Project which is adjacent to Chinguela in the same 70:30 ratio as for the pooled
projects.
Nangali is a low sulphidation high level epithermal gold vein system with potential for 500,000 to plus
2 million ounce gold at a high grade. The project has vein textures typical of high level epithermal
gold emplacement and has a number of established drill targets with strong anomalous surface vein
rock chip values up to 98 g/t gold. Although these high quality drill targets were identified by
Newmont they fall below Newmont Peru's target size.
The acquisition terms cover an initial payment of US$30,000 (already met) largely to cover land title
fees. This is to be followed when the title is formally registered to Compass/AKD by Peru
Government decree of US$200,000. There will also be an over riding royalty of 2% from production.
These gold projects fall within a strongly mineralised trend running from Central to Northern Peru that
host major new gold mine developments and impressive new discoveries.