Thanks MiningNet.newsMalachite follows up PhoenixRebecca...

Thanks MiningNet.news

Malachite follows up Phoenix

Rebecca Keenan


Wednesday, June 02, 2004
JUNIOR explorer Malachite Resources is conducting a follow up program at its Tooloom gold project in New South Wales to test the main Phoenix target.

Part of the program to test other prospects including Joes Gully, Cullens and Watsons, has been completed and the company is expecting results over the coming weeks.

Drilling has been behind schedule partly due to a slow drilling rate.

Malachite managing director Garry Lowder said it was too early to draw any new conclusions about the nature of the Phoenix mineralisation, formerly known as the Phelps prospect. He said the company wanted to discern whether Tooloom was a large low grade orebody, or if it hosted high grade veins of mineralisation.

The company currently has just under $1 million cash.

In April the company broadened its horizons to include a tin prospect at Elsmore also in NSW. Malachite has already been drilling at the project which it has an option to purchase for $4 million over four years.

Lowder said the company could have a resource estimate for Elsmore by the end of the year and move into production in 2005 in order to take advantage of current high tin prices. He said the project could generate revenue in the order of a 'few million dollars' from 500 tonnes of tin per year, and it would cost less than half a million dollars to bring into production.

Lowder told MiningNews.net there was a strong connection between silver, Malachite's primary focus, and tin and that the company was hopeful of finding silver at Elsmore.

Malachite was today trading unchanged at 22.5c on the ASX.