I think we will see some exciting drill intersections during...

I think we will see some exciting drill intersections during 2006 that should fire up the market! Add NGG making the transition to producer and you have the recipe for a big market re-evaluation. If MMN can maintain its current market cap between now and June, it should also be admitted to the ASX300.

Malachite’s New Silver Exploration Program

Malachite Resources’ silver exploration program in eastern Australia is being revitalised, following the recent strong run in the price of silver to 22 year highs of more than $US10 per ounce.

The company’s exposure to silver exploration is concentrated in the New England region of northern NSW, an area important historically for the production of silver from a variety of geological settings. Malachite’s key silver project in New England is centred on the old Conrad mine, about 20km south of Inverell.

Conrad was the biggest producer of silver in New England historically, with over 4 million ounces of silver produced in conjunction with lead, zinc, copper and tin.

Some of the richest grades historically at Conrad came from the King Conrad end of the lode and that is where Malachite will commence drilling in mid March.

Elsewhere in New England Malachite has significant exposure to silver discovery at Rivertree, northeast of Tenterfield, where Macmin Silver Ltd has farmed in (earning up to 75%) and is to conduct a drilling program later this month.

Previous drilling by Malachite at Rivertree produced encouraging results, including 755 grams per tonne (g/t) silver plus 3g/t gold over 15cm at the Wongabah mine and 291g/t silver and 0.17g/t gold over 1m at the old Silver King mine.

More drilling is also planned for the company’s Boonoo Boonoo gold-silver property, located between Tenterfield and Rivertree. Late last year Macmin completed a percussion drilling programme at Boonoo Boonoo with encouraging results, including 5.3g/t gold and 212 g/t silver over 3m at the Star of Hope mine.

Malachite’s other silver property in the vicinity of Conrad is the Elsmore Project, located about 16km east of Inverell. Elsmore is famous amongst mineral collectors for its specimen quality cassiterite1 occurrences and the area has been a major producer of tin in the past.

Less well known is the fact that significant silver occurs in association with the tin and Malachite is investigating the possibility of polymetallic resources at Elsmore, involving payable values in tin, tungsten, molybdenum, copper and silver.

At present the most attractive target at Elsmore is the Sheep Station Hill prospect, where previous shallow drilling by Malachite intersected encouraging Sn-W-Mo-Cu-Ag values2 in multiple greisen veins up to 5m wide.

A new program of drilling at Sheep Station Hill commenced yesterday.

- 08 Mar 2006