Compass Gold Corporation

Contact Us | Disclaimer

TSX-V:CVB     Volume : 46000     Change : +0.005     Last : 0.105     Day High : 0.105     Day Lo: 0.105     Date : 2/22/2012

• Newsletter Archive
• Monthly Archive
• February 2012
• December 2011
• November 2011
• October 2011
• September 2011
• August 2011
• July 2011
• May 2011
• April 2011
• March 2011
• February 2011
• January 2011
• December 2010
• September 2010
• July 2010
• June 2010
• April 2010
• February 2010
• December 2009
• November 2009
• October 2009
• September 2009
• April 2009

Shareholder Update

Dear Shareholder,

Thank you for your continued support of Compass Gold Corporation.

The past year we have made significant progress in pursuing our goal of discovering economically viable gold deposits in the existing gold belts of Southern and Western Mali.  It has been a period of intensive and consistent "in-field" and corporate activity.

Major milestones achieved over the past year include:

• The successful acquisition of the remaining 49% of Africa Mining, thereby taking our ownership of all Mali projects to 100%.  The acquisition gives us full control of Africa Mining's activities and properties.

• We raised a total of C$5.5m in two separate private placements, the latest of which was completed in November 2011 and amounted to C$3.5m.  In addition to providing adequate funding for current exploration programs, our capital raising efforts have served to bolster our institutional support which includes Regent Pacific Group Limited, Pinetree Capital Ltd and Windermere Capital Ltd.

• Evidence of broad gold mineralization based on the partial completion of a 3,000m scout drilling campaign at the 'Solona' anomaly of the Yanfolila project in Southern Mali.  The results further increase our confidence that we have located a strongly mineralised system, the limits of which are still to be defined.  Further drilling is required to build a better understanding of the geological characteristics.

• The completion of a high-resolution aeromagnetic survey over our four exploration licenses (Yanfolila, Dandoko, Kolondieba and Solabougouda).  The airborne magnetics have allowed a better definition of the known targets on the Yanfolila and Dandoko permits and generated new areas of interest on the Dandoko, Kolondieba and Solabougouda permits. Existing gold in soil anomalies at the Yanfolila West target have now been upgraded as valid exploration targets for follow up work. A report is under preparation to collate and summarize the findings of the survey and its interpretation

• Realising one of our strategies to acquire more landholdings in Southern and Western Mali, which we consider to be two of the most prospective and under-explored gold regions in West Africa. Strategic tenements were acquired at Moussala (authorization to explore 66km2 in Western Mali) and Solabougouda (exploration permit of 250km2 in Southern Mali).  These acquisitions increased our landholdings to a total of 888 km2, which is one of the largest in the country among junior gold exploration companies.

Moving forward

Having realized our 2011 goals of achieving full ownership of the Mali projects, confirming gold potential at our principal Yanfolila project, and raising sufficient capital, we are now ready to enter the next phase in building a successful gold company through our drilling program.  2012 promises to be an exciting exploration year as we move towards our objective of defining a gold resource in Mali.

Yanfolila and Dandoko Exploration

Shallow vertical diamond drilling has resumed at the Solona target in Yanfolila.  The aim is to complete the 7 remaining holes of a 30 holes scout program which commenced in May 2011.  The results at Solona have been noteworthy, with promising indications of gold anomalies in all of the main target areas.

Two drill rigs, an RC and a Diamond core, have been secured for an initial 8,600m drilling program. RC drilling is expected to start in late-December on the Dissé, Bembala, Diabarou and Gombaly targets at the Dandoko project in Western Mali.  Diamond drilling is scheduled to start by February 2012 on the 'Solona' and 'Yanfolila' East targets in the Yanfolila license. First drill results at Dandoko are expected to be released by February 2012 with drill results from the diamond drilling program to be provided progressively through to July 2012

Kolondieba – Solabougouda – Moussala Exploration

An early stage exploration program consisting of geochemical sampling, mapping and trenching has started on the Kolondieba and Solabougouda projects in Southern Mali.  The airborne magnetic survey flown over the Solabougouda project has generated new targets we will follow up from December 2011.

Africa Mining has applied to convert the Moussala permit from an "Authorization to explore", to a full "exploration research permit".  We are excited about Moussala's location in Mali's Western gold belt and its close proximity to targets we have identified at the Dandoko project.  Initial fieldwork is expected to begin in January 2012.

The addition of the Solabougouda and Moussala permits have added to our portfolio in 2011 represent a great opportunity and potential for new gold discoveries.

As we enter move into 2012, we remain confident in our ability to make your company the next West African gold success story.  We continue to rely on what we believe is the best in-country exploration management team in Mali, led by Dr Madani Diallo along with an excellent team of locally experienced geologists, field technicians and support staff.  Dr Diallo's track record and management of gold discoveries in Mali is unrivalled and represents one of our biggest assets.

Whilst Compass Gold has positioned itself for success in Mali, none of this would be possible without the support and on-going loyalty of you, our valued shareholders. For your important contribution to our success, I thank you sincerely and will stridently continue to seek to build shareholder value.

James Henderson
Chairman, President and CEO

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Compass Gold Corporation. Statements regarding expectations and interpretation of drilling results at Yanfolia’s Solona target being associated with gold mineralization are subject to all of the risks and uncertainties normally incident with undertaking mineral exploration in Africa, including technical, operational and environmental risks associated with gold exploration including but not limited to completion of final sampling results and the accuracy of the technical evaluation of such results which cannot be relied upon until final verified independent results are reviewed by Compass. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Compass Gold Corporation does not assume the obligation to update any forward-looking statement, except as required by applicable law.