KINGS GAP PROJECT

The Kings Gap Project is located to the south and southeast of Conrad and just to the north of the small town of Bundarra. It comprises the southern block of EL7349 (83 units) and covers both outcropping Gilgai Granite (the host rock at the Conrad mine) and areas of older Sandon Beds, where the Gilgai Granite is interpreted to have intruded the Sandon Beds and be present at shallow depth. Malachite has begun to explore this area, seeking silver-base metal mineralisation like that exposed at Conrad. Work to date includes stream sediment geochemistry, ground magnetics, geological mapping and reconnaissance prospecting.

The focus has been on several aeromagnetic anomalies (magnetic high zones) located within the Kings Gap EL about 25km southeast of Conrad, that are thought to represent buried Gilgai Granite cupolas. Two of these aeromagnetic anomalies are expressed at surface by large areas of alteration, comprising silicification and iron oxide staining. The iron oxides are thought to be derived from oxidation of sulphide minerals and this interpretation is supported by anomalous geochemistry in the limited rock chip sampling carried out to date.

Follow up work is planned, once new land access agreements have been put in place.

RIVERTREE SILVER PROJECT

The Rivertree project comprises an exploration licence (EL 5714) of 6 units, covering about 18 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.

Sampling of dumps at Rivertree 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 but reconnaissance drilling to date has intersected mineralised veining and/or alteration in discrete lode structures up to 4 m wide, some with potentially economic grades of silver mineralisation.

The Rivertree project is now a joint venture between Malachite and Alcyone Resources Limited in which Alcyone is operator and hold a 75% interest. Further exploration drilling at Rivertree by Alcyone is anticipated, with a view to identifying resources that could possibly be treated at their Twin Hills silver mine near Texas in southern Queensland or at a possible future mine at Malachite’s Conrad project.