PIKEDALE PROJECT

The Pikedale Project is located in southern Queensland, some 30km west of the town of Stanthorpe (see map, Figure 1). It comprises an Exploration Permit for Minerals (EPM18166) of 100 sub-blocks, oriented along a major regional structure that appears to host silver-base metal mineralisation at the old Pikedale mine (which is situated on a small mining lease, ML6968, not held by Malachite). Mineralisation in the region is thought to relate to plutons of the Ruby Creek Granite, an active mineralising intrusive analogous to the Gilgai Granite at Conrad.

Malachite’s exploration is focussed on discovery of silver-rich base metal mineralisation, like that at Conrad and at the old Pikedale mine. The most promising result to date is the discovery, in a prospect area known as ‘Lickhole’, of a large area of ironstone outcrops that are geochemically anomalous, locally very much so. The highest assays reported so far (in separate samples) are: copper up to 7.9% Cu, zinc up to 6.3% Zn and silver up to 71g/t Ag. Encouraged by these geochemical results, Malachite conducted a geophysical survey at Lickhole (induced polarisation method) that identified strong chargeability anomalies underlying the surface ironstones (see map, Figure 2). The chargeability anomalies are thought to indicate the presence at depth of well developed sulphide mineral systems that make Lickhole an attractive drill target. Malachite has applied for funding from the Queensland Government under its Collaborative Drilling Initiative of the Greenfields 2020 Program to assist with initial drill testing of the Lickhole anomalies.

That drilling is expected to take place in the second half of 2011.