The compass recipe only shows up when you've got magnetite with you. I find the easiest place to get that to be the nearest entrance to the Jelly Shroom Caves. Seamoth + good diving gear should get you plenty of time to grab a piece.
In the mountain region to the north of the map. If you look up the compass in the Subnautica Wiki it should have all the info you need (although it's based on the PC version so may have a few bits not in the Xbox version yet). I don't have a link as I'm on my phone, but if you look for the FAQ thread I started it's on there.
As a previous person stated, you need Magnetite for it to show up..
if you need directions to where the Mountain Island is, you can try and look up Gaius666th (my profile) on xbox, got a video showin with a beacon where the island is from Aurora to help out new people
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I think you need to have picked up the right materials before it'll appear in the fabricator build menu though. Have you found any magnetite?
You need Magnetite and a Computer Chip (Silver, 2x Table coral Sample, Quartz)
if you need directions to where the Mountain Island is, you can try and look up Gaius666th (my profile) on xbox, got a video showin with a beacon where the island is from Aurora to help out new people