The Sikasso Property

(While the following information is extracted primarily from “NI 43-101 Technical Report on the Sikasso Property, Republic of Mali” prepared by EurGeol Dr. Sandy M. Archibald, PGeo Aurum Exploration Services, August 31, 2011, please refer to the original report for greater detail.)

The Sikasso Property consists of five prospecting permits covering an area of approximately 1,179 sq km and is located within the Sikasso Region of the Republic of Mali. The Property divided into the Yanfolila Block, consisting of the adjoining Ouassada and Sankarani permits in the north, and the adjoining Kourou and Tieoulena permits in the south. The Kalé permit is situated approximately 230 km east-southeast of the southern Yanfolila block permits, covering an area of approximately 250 sq km. All permits are owned by Compass's subsidiary Mali Gold Exploration Pty Ltd ("MGE").

Currently and historically, the Birimian greenstone belts of the West African Craton host significant accumulations of gold as exemplified by deposits such as Obuasi (Ghana), Morila, Loulu-Gounkoto, and Syama (Mali), and Essakane, Burkina Faso. The properties in the Sikasso Project are considered prospective for orogenic gold style mineralization based on their favourable Paleoproterozoic geology and structure, including their proximity to other mineralized systems in the area.

The Ouassada, Sankarani, and Kourou permits contain a number of historic surface showings and artisanal alluvial and eluvial mines. Modern exploration, using a variety of techniques such as soil geochemistry, lithogeochemical prospecting, and airborne geophysics resulted in the identification of additional mineralization, which has subsequently been worked by artisanal miners at several localities.

Bedrock mineralization has been identified on the Ouassada and Sankarani permits, and consists of decimetre wide quartz veins with pyrite. The average gold concentration of 342 samples collected from two prospects at Ouassada was 3.11 ppm, with a large standard deviation of 6.99 ppm Au. Independent sampling of bedrock and eluvial mineralization on the Property confirmed the previous measured gold concentrations.

Interpretation of high-resolution airborne magnetic and radiometric geophysical data has identified multiple exploration targets, particularly in areas with little or no outcrops, e.g. Kalé.

The Sikasso Property is comprised of two blocks of contiguous exploration permits (Ouassada and Sankarani, and Tieoulena and Kourou, termed the "Yanfolila Block") and an isolated permit at Kalé (Figure 4-1). The permits cover a total area of 1192.4 sq km and are situated in the Sikasso Region of the Republic of Mali. The Yanfolila Block is approximately 150 km south-southwest of the capital city of Bamako (pop. 1,809,106 in 2009), and Kalé is 340 km southeast of Bamako. The property location is illustrated in Figure 4-1.

Size and Location

The Republic of Mali comprises a total area of 1,240,192 km2 and is located between longitudes 130W to 50E and latitudes 100N to 260N. The country is bounded by Algeria to the north, Niger and Burkina Faso to the east, Ivory Coast and Guinea to the south, with Senegal and Mauritania to the west.

Figure 4-1: Property Location

Source: drafted by Archibald, 2017

Sikasso Property Tenure Rights

The property permits were acquired in 2011 and based on continuing work expenditures are in good standing.

Figure 4-2: Property Tenure Map

Note: International boundary indicated by light brown line, and Sikasso Region with a purple line. Source: Background map by Delorme, map drafted by Archibald, 2017

The exploration concession corners were established by GIS coordinate points, and have not been surveyed or marked on the ground.

On November 29, 2017, Compass Gold Corp. announced that it had acquired all of the issued and outstanding shares of Mali Gold Exploration Pty Ltd ("MGE") in exchange for the issuance of post-consolidation shares of Compass to the shareholders of MGE. This was part of a transaction through which Compass gained 100% control of MGE’s Sikasso Property. At the same time, Compass had raised $6 million which was earmarked to support a new exploration round to test the 35 near-surface gold targets that had been identified by Dr. Madani Diallo and his MGE team over the previous six years.

Accessibility

The northern two permits, Ouassada-Sankarani, of the Yanfolila Block can be accessed by the Route National 7 (RN 7) paved road from Bamako to Keleya (85 km), followed by 55 km of unpaved road to Selingue. Access within Ouassada and Sankarani is achieved using an extensive network of minor unpaved roads and drivable tracks and footpaths. Access from the north to the main part of the Sankarani permit is via a small motorized ferry at Faraba, or from the south by an unpaved secondary road from Yanfolila. The southern permits of the Yanfolila block (Tieoulena and Kourou) are accessed via the paved RN7 from Bamako to Bougouni, and the RN8 from Bougouni to Yanfolila. Within both permits access is by minor unpaved roads and drivable tracks and footpaths.

The Kalé permit can be accessed via the 375 km paved RN7 from Bamako to Sikasso, followed by a 155 km drive on unpaved roads and tracks from the Farakala turn-off (Fig. 4-1.)

Property Located in Known Gold Belts - Source: drafted by Archibald, 2017

The Kalé permit can be accessed via the 375 km paved RN7 from Bamako to Sikasso (pop. 225,753; 2009 census), followed by a 155 km drive on unpaved roads and tracks from the Farakala turn-off (Fig. 4-1.)

Climate

The Sikasso Property is located on the southern edge of the Sahel, or sub-Saharan belt, and is characterized by a subtropical to hot climate and has dry and wet seasons. The rainy season extends from May to October, with an average rainfall of 800-1000 mm per annum, and a hot dry season from October to April. Mean daily temperatures range from a high of 360C in April to a low of 190C in December. Most of the region is devoted to agriculture (subsistence farming), and is planted with maize and cotton with minor areas of brush and trees most commonly located along tributaries and main drainages. The climate graph below for Yanfolila (Figure 5-2) typifies weather at the property.

Exploration activity can be conducted year round, although extra caution must be exercised on the roads and while crossing streams in the wet season (May to October).

Figure 5-2: Climate Chart for Yanfolila, Sikasso Region {367 m)

Data from worldweatheronline.com.  Drafted by Archibald, 2017