Future Browns Sulphide Project

Compass has reviewed its original feasibility study into the development of the underlying sulphide resources. This $350 million project is extremely robust at long term metal prices. The Company’s strategy is therefore to rapidly progress final engineering and environmental approval for this long life project.

As well as establishing Compass as a major cobalt producer for the long term, development of the sulphide deposit transforms the company into an important long term supplier of lead, a moderate sized copper supplier and a niche supplier of nickel.

Future Uranium Producer from the Rum Jungle Mineral Field

Exploration continues to define what the company believes will be significant uranium resources in the Rum Jungle Mineral Field. As these resources are defined, work will proceed on engineering and environmental approvals for Compass to become a uranium producer in a relatively short time frame. This will be aided by the presence of an already experienced mining team and all the local support facilities being developed for the Browns Oxide Project.

Above: Electrowinning plant purchased from Cawse

Market for Browns Metals

The Browns oxide/sulphide deposit will become an important base and specialty metals mine. Initial production of 10,000 tpa copper, 1,000 tpa cobalt and 750 tpa nickel will be readily marketable. Interest in securing off–take of metals is intense. The Company intends to use this competition for its products to maximum advantage in assuring funding leverage for both the oxide and sulphide projects.

Copper and Nickel

Much has been reported on the huge and growing metals consumption of China. India is forecast to follow closely along the same path. Both copper and nickel have very favourable demand outlooks and production of both metals from Browns will be readily absorbed into the market. As sulphide ores are developed the production of lead, copper and cobalt from Browns will increase.

Cobalt

At an initial production rate of 1,000 tpa cobalt, Browns will immediately become a major player in the world cobalt market. The Browns Oxide Project will produce some 2.5% of the world’s primary cobalt supply. With increasing aerospace activity and the expanding use of cobalt in batteries, we believe the cobalt market will continue to remain strong.

Lead

Lead will be produced from the Browns sulphide ores. Batteries drive demand for lead both in the automotive industry and as a back up electrical storage source, especially from renewable energy sources. Primary lead continues to be in short supply as the lead market continues to expand and new lead mines are not available to meet this demand.