RIVERTREE

The Rivertree project comprises an exploration licence (EL 5714) of 13 units, covering about 40 km², located in north eastern NSW, 55 km northeast of Tenterfield and just to the west of Tooloom. The licence is held by Malachite and incorporates numerous old mines and prospects. Historic production took place prior to 1925 and ceased due to ore processing difficulties with the technology of the day and lack of interest at the time in zinc.

In November 2004 Malachite entered into a joint venture agreement with Macmin Silver Limited under which Macmin purchased an initial 60% interest in Rivertree. Under that joint venture, Macmin has now earned a further 15% interest in Rivertree by funding $500,000 of exploration expenditure on the two projects.

Sampling of dumps at Rivertree by Malachite has tended to confirm the high grade, polymetallic nature of mineralisation, with substantial values in silver (100-2500 g/t Ag), gold (0.5-8.5 g/t Au) and zinc (up to 20% Zn), and accessory to significant values in lead, copper and tin.

Very little modern exploration has been conducted at Rivertree. Reconnaissance drilling by Malachite intersected mineralised veining and/or alteration in discrete lode structures up to 4 m wide, some with potentially economic grades of silver mineralisation.

In 2006 Macmin completed nearly 3,000m of RC drilling in 38 holes at Silver King, Spring Gully and Big Block.

The best intercepts recorded by Macmin at each prospect are as follows:

• Spring Gully, 2m at 250.5 g/t silver, 0.35 g/t gold, 0.32% zinc and 0.45% lead in hole SGRC14 from 26m down-hole
• Silver King, 1m at 147 g/t silver in hole SKRC12 from 17m down-hole
• Big Block, 3m at 78 g/t silver, 0.56% zinc, 0.79% lead in hole BLRC2 from 192m down-hole

Future work at Rivertree will focus on some of the lodes that occur higher in the system, where they are hosted by sedimentary rocks and appear to be wider and better mineralised than the lodes hosted by granite at lower levels.