President’s Letter to Shareholders


Dear Shareholders:

Our Compass exploration team has been very busy over the past six months, as evidenced by the many excellent drill results and multiple new targets we’ve been able to report from their work at our Sikasso Property in Southern Mali. In our most recent press release just last week, we announced the discovery of another large high-grade anomaly, this one on our Kourou permit area. With that, we have reported the results from all of the exploration work completed prior to the beginning of the rainy season in late July, which brought an end to field work and drilling.

Already this year, our team has done an outstanding job generating impressive results across large target areas such as Farabakoura. Using a careful drilling plan totaling less than 8,000 metres, we have discovered several broad mineralized zones, such as reverse circulation (RC) hole 11 (OURC011) with 60 metres of 1.42 grams per tonne gold and RC hole 24 with 32 metres at 3.02 grams per tonne gold.

Our diamond drilling (DD), consisting of only eight holes, contributed remarkably high-grade results, such as DD hole 4 with 6.1 metres at 65.58 grams per tonne gold and DD hole 6 with 13.5 metres at 9.25 grams per tonne gold.

While these are just a few of the key results that make the mineralized zone at Farabakoura such an exciting target, it is important to note that virtually all of our drill holes discovered gold mineralization. In fact, our 93% ‘hit rate’ is almost unheard of for a first-ever drill program in grass-roots exploration.

It is also worth noting that the drilling was concentrated within 100 metres of surface. Such shallow gold mineralization is ideal for a simple open pit extraction, which in Mali, typically requires grades of less than 1.5 grams per tonne gold to be economic.

Beyond the gold mineralization, all of our drilling and other exploration work is providing essential answers about the rock types, structures, size, and orientation of the large Farabakoura target. The high-grade intercepts are exciting, but what is equally important is refining our understanding of structures and trends so we can determine where the drilling should go next. We are now focused on how far this Farabakoura zone extends, to the north, to the east and even at depth. This is all in support of our clear objective of progressing Farabakoura to a defined mineral resource in the coming year.

President’s Letter to Shareholders