DELUNGRA

Delungra is grass roots exploration project taken up by the Company in 2007. The tenement is located 40km west of Inverell and covers a granite body whose geochemical and radiometric signatures are quite similar to those of the Gilgai Granite, which hosts the Conrad Silver Mine, 20km south of Inverell. For much of its extent the granite at Delungra is covered by a thin veneer of Tertiary basalt. Several mineral occurrences are known in the exposed granite areas and Malachite believes that the Delungra area has potential to host a blind, polymetallic silver deposit, similar to Conrad, beneath the basalt areas.

Exploration will involve regional stream sediment geochemistry and geological mapping. Anomalous areas will be followed up with electrical geophysics (VLF-EM), which has proven to be an effective exploration technique at Conrad.

Several tin occurrences are also recorded in the Delungra area and the Company will pay attention to the possibility of greisen-hosted and alluvial tin deposits at Delungra, which may be comparable with those being investigated by Malachite at Elsmore, east of Inverell.