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.

The Delungra tenement is also prospective for tin deposits, with both greisen-hosted and sheeted vein hard rock types possible, together with their alluvial derivatives.

Exploration involves regional stream sediment geochemistry and geological mapping. To date the most promising prospect is a tin occurrence known as Standon.

At Standon there is a large and quite intense tin-in-soil geochemical anomaly that covers an area of at least 250m x 450m (at 250ppm cut off, see Fig. 1). Within this area tin values in soil range up to 0.43% Sn. The soil anomaly is uphill from some minor old workings where tin is associated with quartz-tourmaline veins. Malachite believes that the Standon soil anomaly may overlie a substantial sheeted vein or stockwork vein tin deposit.