MAR 0.00% 0.1¢ malachite resources limited

creation of a new silver/gold the wi

  1. 2,839 Posts.
    With MMN's Tasgold hitting the streets tomorrow and MAR seeing fit to take a $300k stake in it (1.5M shares), one can only dream of greater things to an allegiance....the creation of an empire, with silver as the common theme and gold thrown in just for good measure.

    "The Macmin alliance has thus effectively become the
    Macmin-Malachite-Tasgold alliance and Malachite Managing Director, Garry Lowder has been appointed to the board of Macmin, while Malachite Director Warren Staude has been appointed to the board of Tasgold.
    It is anticipated that a representative of Macmin may join the Malachite board in the near future."

    Coupled with all of the above we have Warren Staude on the boards of MCO and CWG to boot.

    What a team! Check out their just can't help getting excited about the whole "empirical" concept.

    Cheers all & good luck to fellow shareholders,


    HOMEX - Sydney



    * Initial drilling program completed at Rivertree targeting four
    historic mines:

    # High grade silver intercepted at Wongabah and Silver King
    (grades including 755 g/t silver, 291 g/t silver)

    # 4 metre wide lode intercepted at Dunlop

    # Attractive new drill targetidentified at Spring Gully

    * Encouraging results from initial field work at Boonoo Boonoo:

    # 30 samples collected from dumps and old workings
    including one assaying 51.8 g/t gold and 345 g/t silver

    # Priority drill targets identified at Specimen Gully and
    Browns lode

    * Drilling ready to commence at Conrad:

    # 3,000 metre drilling program to commence in April,
    following environmental approval during March Quarter


    * AGI Database project (BHP-Billiton alliance) identifies 14 priority
    target areas for follow up

    * Strategic stake acquired in new gold and silver IPO Tasgold Ltd
    (Macmin Silver Ltd alliance)

    * Exploration expenditure for the Quarter was $297,000


    An initial drilling program was completed at the Rivertree silver
    project, 55 km north east of Tenterfield, NSW. Rivertree is the
    second ranked of Malachite's silver projects (after Conrad) but was
    drilled first while site access was arranged for the Conrad area.

    The twelve hole (1346 m) program at Rivertree tested only four of the
    more than forty identified vein systems and lines of old workings.
    Most holes intersected mineralised veining and/or alteration in
    discrete lode structures up to 4 m wide and two holes intersected
    potentially economic grades of silver mineralisation. The drill hole
    location plan on p. 3 shows vein systems in part of the Rivertree
    area and identifies the specific localities described below.

    At Wongabah a high grade, massive base metal sulphide vein, assaying
    755 g/t silver (= 24.3 oz/t Ag) and 3.0 g/t gold, was intercepted in
    the first hole, although at this point the vein was only 15 cm wide,
    much narrower than in the near surface old workings; such variation
    in width was expected. The other three holes at Wongabah did not
    produce significant assays and it is thought that the Wongabah
    mineralisation occurs in discontinuous massive sulphide lenses, or
    may be displaced by faulting.

    Four holes were drilled at the Silver King mine, each of which
    intersected the main previously mined lode, up to 3 m in width. The
    most southerly hole produced a relatively high grade assay: SKRC02:
    1.0 m of 291 g/t silver (9.4 oz/t Ag) and 0.17 g/t gold. Two other
    holes intersected well developed lode but with low silver values.

    Given the extent of old workings, the size of the dumps and the fact
    that a smelter was constructed here in the early days, these
    intercepts are clearly not representative of the material that was
    mined historically, and more work is needed to enhance the Company's
    understanding of the Silver King system. It is possible that the lode
    structure itself is continuous but that high grade silver
    mineralisation occurs as a shoot plunging at a shallow angle to the

    Two holes were drilled beneath old workings at Dunlop, both
    penetrating a 4m wide zone of strong quartz-sericite alteration,
    pyritic mineralisation and quartz-carbonate veining, correlating well
    with the overlying workings. However, only minor base metal sulphide,
    principally sphalerite, was present in this part of the lode and
    silver and gold values were low. It appears that the Dunlop lode is
    well developed but that the silver mineralisation may be quite patchy
    within the lode structure. Neither of the two holes drilled at
    Boulder intersected significant mineralisation.

    Encouraging results were also obtained from surface mapping and
    sampling of the Spring Gully workings, not previously examined by
    Malachite. The Spring Gully prospect consists of three discrete
    parallel lodes, each of the order of 1 m in width, within a 30-50 m
    wide alteration zone that is at least 750 m long. Eleven samples of
    oxidized and sulphide-bearing dump material and oxidized surface
    outcrops along the Spring Gully structure averaged 302 g/t silver
    (range 7 to 1370 g/t Ag) and 1.44 g/t gold (range 0.05 to 3.98 g/t
    Au). The Spring Gully structure is thus an attractive target for
    follow up in the next program. It also shows the highly variable
    intensity of silver-gold mineralisation within discrete lode systems
    at Rivertree.

    While it is clear that not all of the old mines at Rivertree will
    have economic potential in a modern context, the results achieved so
    far are considered encouraging and do suggest that continued
    exploration in the area will be well rewarded. As Rivertree had never
    been drilled before, the Company had limited sub-surface information
    to target the drilling. Looking ahead, the Company will interpret the
    initial drill results, examine more closely the other lode structures
    (like Spring Gully) and apply geophysics to help define and
    discriminate between the many targets that Rivertree offers.


    A brief surface sampling program was carriedout at the Boonoo Boonoo
    gold-silver field, located about 20 km northeast of Tenterfield, on
    the way to Rivertree. Approximately 30 samples were collected from
    dumps and old workings and most were highly anomalous in both gold
    and silver, with gold values generally within the range of 0.5 to 9.4
    g/t Au, and silver values generally in the range of 10 to 185 g/t Ag,
    although one dump sample assayed 51.8 g/t gold (1.7 oz/t Au) and 345
    g/t silver (11 oz/t Ag).

    Of particular interest is the Specimen Gully prospect, which has the
    most extensive old workings and consists of several parallel quartz
    reefs and zones of sheeted quartz veining within a broad band 30-50 m
    wide and 700 m long. All but one of the samples from Specimen Gully
    were distinctly anomalous in gold (up to 2.23 g/t Au) and silver (up
    to 119 g/t Ag). Furthermore, the very rich sample referred to above
    came from a dump on Browns lode, which merges obliquely with Specimen
    Gully, and together these two systems form an attractive potential
    drill target.

    The company plans to apply geochemical and geophysical techniques to
    better define the targets at Boonoo Boonoo and to undertake
    reconnaissance drilling in conjunction with the next drilling program
    at Rivertree.


    Conrad is located 20 km south of Inverell in NSW and is Malachite's
    main silver project. The Company's Review of Environmental Factors
    was approved in February, 2003, allowing construction where necessary
    of access tracks and drill pads for Malachite's first drilling
    program at Conrad, to commence by mid April. Approximately 3,000 m of
    drilling will be undertaken, in ten pre-collared diamond holes.

    Mining at Conrad ceased in 1957, due to a collapse in the lead price
    at the time. Up till then the mine had produced at least 3.5 million
    ounces of silver at an average grade of around 620 g/t Ag (20 oz/t
    Ag), together with an average of 8% lead, 4% zinc, 1.5% copper and
    1.5% tin. Old mine data show that the mineralisation at Conrad was
    very continuous and consistent along strike (up to 1.4 km) and down
    dip (up to 267 m).

    Malachite's drill program will target extensions of the Conrad lode
    at depth immediately below the main old workings.


    Good progress has been made on the AGI Database project, which is an
    outcome of the Company's alliance with BHP Billiton Ltd. The work has
    involved analysis and interrogation of a large volume of geochemical
    information contained in a proprietary database made available
    exclusively to Malachite by BHP Billiton.

    Data for 170 high priority geochemically anomalous areas have been
    examined and from that total, 14 targets have been selected for more
    detailed follow up. A further 105 lower priority areas have been
    identified for future analysis. Emphasis is being given to large
    targets that may be of interest to BHP Billiton for joint venture, as
    well as to silver and gold targets that Malachite can pursue alone.


    The Tooloom gold project is located in northeastern NSW, immediately
    to the east of the Rivertree silver project. Progress has been made
    with seeking the Minister's approval for transfer to Malachite of the
    interest held at Tooloom by Tooloom Gold Pty Ltd, pursuant to a
    sale & purchase agreement signed in August, 2002. Thattransaction is
    expected to be completed in April, whereupon Malachite will hold a
    100% interest in the Tooloom property. At that time, Malachite will
    issue Tooloom Gold with 2 million vendor shares and 3 million vendor
    options and make a payment to them of $70,000 in cash. Field work at
    Tooloom is scheduled to start in May.


    No activity took place at East Moonmera, located 20 km south
    southwest of Rockhampton in Queensland, during the period under
    review. Field work to investigate the potential for porphyry
    copper-gold mineralisation will commence in May or June, after the
    northern wet season.


    Malachite has a strategic alliance with Macmin Silver Ltd, which
    owns a significant silver resource at Texas, in southern Queensland,
    not far from Malachite's own Rivertree and Conrad silver projects.
    Macmin also has a significant investment in Malachite, taken up when
    the Company floated late in 2002. More recently, Macmin has made a
    public offer of its subsidiary, Tasgold Ltd, a company with highly
    attractive gold and silver projects in Tasmania. Tasgold is expected
    to list on the Australian Stock Exchange on 9 April, 2003.

    Building on its alliance with Macmin, Malachite has invested $300,000
    for 1,500,000 shares and 1,500,000 options in Tasgold. This
    investment is seen as offering Malachite excellent exposure to
    further gold and silver opportunities within the same geographic
    region on which the Company has focussed since its inception.

    The Macmin alliance has thus effectively become the
    Macmin-Malachite-Tasgold alliance and Malachite Managing Director,
    Garry Lowder has been appointed to the board of Macmin, while
    Malachite Director Warren Staude has been appointed to the board of
    Tasgold. It is anticipated that a representative of Macmin may join
    the Malachite board in the near future.

    All three companies see substantial benefits in cooperating in this
    way, adding value through the sharing of logistics, information and
    expertise, especially silver expertise, and providing prospective
    partners for joint ventures or other forms of joint business activity
    where that is appropriate.


    Exploration expenditure during the period under review amounted to
    $297,000. A further $7,500 was expended in completion of the
    acquisition of ML 525 at Tooloom and $300,000 was invested in the
    Tasgold public offer.


    For further information please contact Garry Lowder on (02) 9415 6833
    or 0417 212 099, or by email at [email protected]

    G G Lowder

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