MMN macmin silver ltd

progress (the goanna)

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    MACMIN SILVER LTD 2003-06-25 ASX-SIGNAL-G

    HOMEX - Brisbane

    +++++++++++++++++++++++++
    * MAJOR NEW TARGET - GOANNA ZONE - DEFINED AT THE TEXAS SILVER
    PROJECT, SE QUEENSLAND

    * MT GUNYAN DRILLING UPDATE

    * DRILLING PLANNED AT SILVER SPUR MINE


    GOANNA ZONE

    A major, new, silver and base metal target zone, known as the "Goanna
    Zone". Has been defined at the Texas Silver Project, less than one
    kilometre east of the Twin Hills silver system.

    The "Goanna Zone", which coincides with a previously identified
    northerly trending structural corridor, extends three kilometres
    northwards from the historic Silver Spur Mine. It was defined by a
    recently concluded Induced Polarisation (IP) survey and is an
    exciting new development for the Texas Project. The Goanna Zone opens
    up new target possibilities, such as high grade polymetallic
    sulphides, in addition to Twin Hills style silver/gold
    mineralisation, and thus has significant implications for ongoing
    exploration and development.

    Macmin's technical director, Denis O'Neill, believes that the
    mineralising solutions that have given rise to the Twin Hills and Mt
    Gunyan silver systems and the Silver Spur silver plus polymetallic
    massive sulphide system, were sourced by mineralising solutions
    ascending along this structural corridor before being deposited in
    specific structural and lithological sites.

    In the Texas district, ninety five (95%) percent of all identified
    precious and base metal mineral occurrences, old mines and prospects
    are within 1.5 kms of this structural corridor. If the above
    interpretation is correct, the structural corridor itself should be a
    highly prospective zone likely to host further silver and/or
    silver-base metal deposits.

    The IP survey was originally intended to explore for bedrock drill
    targets south of, and along strike, from the Twin Hills silver
    system. No anomalies were located although the known Twin Hills
    system is readily identifiable with a pronounced anomaly. The IP
    survey was then extended to cover the eastern part of the Twin Hills
    mining lease and the area north of the historic Silver Spur Mine.
    This extended survey located the "Goanna Zone", which extends
    northwards from the Silver Spur Mine and through the eastern part of
    the Twin Hills mining lease. It averages 500m in width.

    IP surveys most commonly define zones of disseminated pyrite. In the
    Texas district, Macmin has noted that a build up in pyrite content
    can be used as an indicator of proximity to precious and base metal
    occurrences.

    The location of the "Goanna Zone", its significance and geographic
    relationship to Twin Hills, Mt Gunyan and Silver Spur, is shown on
    the accompanying figure.

    The main points which support Macmin's conclusion that the "Goanna
    Zone" is a particularly exciting target at Texas can be summarised as
    follows:

    * the large size of the anomaly suggests it has the potential to host
    larger bodies of mineralisation than have previously been located.

    * the Twin Hills silver system is defined by a similar intensity, but
    much smaller, IP anomaly (see figure).

    * the historic Silver Spur mine occurs at the southern end of the IP
    anomaly. Silver Spur's historical production was of very high grades
    - 100,000t at 800g/t silver, 1.7g/t gold, 16.8% zinc, 5.0% lead and
    1.3% copper.

    * the anomaly is still open ended to the north.

    * the anomaly is within a major structural corridor defined
    previously from airborne geophysical surveys.

    Preliminary testing of the Goanna Zone has commenced and four diamond
    core holes are planned. These holes are intended to assess the cause
    of the IP anomaly and hopefully locate specific mineralised zones
    which can be followed up by later, more intensive drill programs. The
    initial hole located 5 to 8% disseminated pyrite with quartz calcite
    veinlets.

    MT GUNYAN DRILLING UPDATE

    The Mt Gunyan silver/gold prospect has been the focus of recent
    drilling activity in the Texas Silver Project. Previous drill
    intersections at Mt Gunyan include results such as those quoted
    below:

    DRILL HOLE ASSAY INTERVAL INTERCEPT Ag g/t Au g/t AgE* g/t

    MGD 1 152-153m 1m 300 43.2 3,324
    MGD 2 18-20m 2m 104 - 104
    66-70m 4m 225 - 225
    MGD 3 12-14m 2m 190 3.4 428
    26-36m 10m 119 0.24 136
    MGP 1 130-134m 4m 34 11.6 846
    156-160m 4m 55 7.4 552
    MGP 10 14-18m 4m 108 4.3 409
    26-30m 4m 190 0.46 222
    54-56m 2m 180 0.04 183
    94-100m 6m 298 0.01 299
    MGP 11 78-86m 8m 344 0.59 385
    94-96m 2m 50 2.4 218

    * gold converted at 1 gram gold equals 70 grams silver

    The Mt Gunyan mineralised system is defined by a large silver in soil
    geochemical anomaly covering approximately 2 square kilometres within
    a broader lead/zinc anomalous zone of over 3 square kilometres.
    Maximum silver and gold values in soil are 68g/t and 0.22g/t
    respectively.

    The present program has focussed on a more detailed (than previous
    drilling) evaluation of near surface mineralisation - ie between
    surface and 60 metres depth. Of the 83 holes completed, results have
    been obtained for 56 holes. Although drilling has encountered the
    best near surface intercepts to date, results have been somewhat
    variable with many holes encountering low-grade silver between 30 and
    60g/t. Some of the better near surface intersections included: Hole
    MGP59 which intersected 12 metres at 108g/t silver and 1.8g/t gold
    (234g/t silver equivalent) between 8 and 20 metres down-hole and hole
    MGP38 which intersected 165g/t silver and 0.4g/t gold (193g/t silver
    equivalent) also between 8 and 20m down-hole. Other holes, such as
    hole MGP65 have encountered difficult drilling conditions and have
    terminated prematurely in high grades. The last sample in hole MPG65
    between 8 and 9 metres intersected 217g/t silver and 1.29g/t gold
    (307g/t silver equivalent).

    Much of the soil anomaly at Mt Gunyan still remains to be tested. It
    has also proved more difficult than expected to confirm continuity of
    higher-grade zones in drilled areas. Further drilling, including
    diamond core drilling in deeper zones and areas of difficult drilling
    conditions, will be required before resource estimates can be
    revised.

    DRILLING COMMENCES AT SILVER SPUR MINE

    The recently completed geophysical survey highlighted an IP
    chargeability anomaly extending north-west from the historic Silver
    Spur Mine (see earlier in release for Silver Spur historic
    production). This feature has prompted a re-assessment of the host
    sequence to the high-grade massive sulphides, historically mined at
    the turn of the century. A two hole diamond drilling program was
    carried out by the Department of Mines in 1973 to test for extensions
    to the historic orebodies. The drill logs showed that there was a
    significant build up in pyrite.

    Geological mapping on a recently cleared area on the adjacent road
    reserve, has identified a zone of shale, quartz veining, and sericite
    alteration trending west-north-west from the historic workings and
    coinciding with the trend of the IP chargeability anomaly. Drilling
    has commenced to test this zone for precious metal and polymetallics
    content.


    R D McNeil
    MANAGING DIRECTOR

    This report is based on & accurately reflects information compiled by
    a competent person as defined in Appendix 5A of the ASX Listing Rules
 
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