Malachite Resources NL (?MAR?) is pleased to announce that it has successfully raised $312,140 through a Placement of 5,202,335 ordinary fully paid shares at an issue price of 6 cents.
The funds raised provide additional working capital for ongoing work at each of the Company?s key assets.
ABOUT MALACHITE ? Malachite Resources is a Sydney-based resources company that listed on the ASX in November 2002 and is an active explorer for silver, tin, gold, copper and associated base metals in eastern Australia. The Company?s key assets are:
The CONRAD SILVER PROJECT, which is located 25km south of Inverell, in northern NSW, where the Company is evaluating the scope to reopen the old Conrad Silver Mine near Inverell. Conrad has had two previous periods of production but has not operated for over 50 years. Drilling at Conrad by Malachite has intersected narrow high grade, massive sulphide, silver-rich base metal veins, like those mined in the past, and wide zones of lower grade, disseminated and stockwork veined, polymetallic mineralisation. At current prices, silver represents 50% of total recoverable metal value in the Conrad ore and tin accounts for about 25% of the value. The currently defined mineral resource at Conrad contains approximately 10Moz of silver, or 19Moz of silver equivalent. This resource remains open along strike and at depth. The Company is now seeking a joint venture partner to fund the project through to feasibility and a development decision.
Malachite also has excellent exposure to tin, through its ELSMORE Project, located 20km east of Inverell, where the Company is considering the possible development of a paleo-alluvial tin deposit, known as the Karaula Lead, at the Newstead Prospect. The Karaula Lead appears to have the potential to support a small surface mining operation, which could be developed with low capital and operating costs and generate useful cash flow for the Company. Work is now underway to better quantify the Karaula Lead deposit and assess its economics.
Encouraging tin results have also recently emerged from the Company?s DELUNGRA Project, located west of Inverell.
The TOOLOOM GOLD PROJECT also in northeast NSW. Tooloom is a forgotten goldfield rediscovered by Malachite where numerous prospects have been identified, including a significant green fields discovery called Phoenix. The company is systematically exploring Phoenix and the other prospects at Tooloom, which are intrusion-related and have major ore potential and is also seeking a joint venture partner in respect of this project.
Andrew J. Cooke
Malachite Resources Limited
Tel: +61 2 9411 6033
Fax: +61 2 9411 6066
Mob: 0412 090 826