Malachite Resources NL ABN 86 075 613 268 Suite 1502, Tower B, 799 Pacific Highway, Chatswood NSW 2067 P O Box 5218, West Chatswood NSW 1515 Tel. (02) 9411 6033 Fax (02) 9411 6066 ASX Announcement Code: MAR 30 January 2007 MORE HIGH GRADE COPPER AT MT LIDSTER • Drilling at Mt Lidster in December 2006 has intersected further high grade copper mineralisation; • Best result was in MLRC09: 18m @ 2.4% Cu, including 2m @ 9.8% Cu. • Highest single assay result: 1m @ 15.05% Cu and 1.04g/t Au; • True widths of mineralisation up to 12m. Malachite Resources NL (ASX: MAR) advises that assay results have now been received for samples from December 2006 drilling at the Mt Lidster Copper Project, near Mt Isa in northwest Queensland, where Malachite has an option to acquire a 100% interest. The best intersection in the recent drilling was in hole MLRC09, which cut an 18m massive sulphide zone from 76m to 94m (11.6m true width), with an average grade of 2.4% Cu, including 2m of 9.8% Cu. Several holes intersected massive to semi-massive sulphide mineralisation, with good copper values, mainly expressed as primary chalcopyrite. Other holes intersected the structure where it is dominated by quartz rather than sulphide. Copper grades correlate well with sulphide content and it is apparent from both drilling to date and inspection of the outcrop that mineralisation is concentrated into pods or shoots within the Mt Lidster structure, at least near surface. Copper mineralisation was also intersected in what appear to be parallel or splay structures, some examples of which can be seen at the surface. Significant amounts of gold and cobalt are present as accessory metals. Twelve shallow, reverse circulation percussion holes were drilled in the latest program, for a total of 959m. Drill hole details are set out in Table 1 and assays of the mineralised intersections are listed in Table 2. The map below shows the Mt Lidster structure and the location of all holes drilled at the project to date. Malachite is strongly encouraged by these results, for while the drill sample assays to date are mixed, it is clear that this is due to the poddy distribution of mineralisation within the structure. Where good mineralisation is intersected the grades can be spectacular – the best single assay from the recent program was 1m @ 15.05% Cu and 1.04g/t Au. Much of the structure remains to be drill tested and as yet there has been no deep drilling at Mt Lidster at all. It is too soon to draw any conclusions about average grades within the Mt Lidster structure overall, but it is possible that, in a future mining context, the high grade massive sulphide pods may be sufficiently abundant to carry the interspersed lower grade quartz-rich zones. It is also possible that the massive sulphide zones will expand or coalesce at depth, where drilling is yet to occur. Following the current tropical wet season the Company plans to conduct a geophysical survey, utilising an electromagnetic (“EM”) technique, at Mt Lidster, with the aim of identifying electrical conductors that could represent the best concentrations of massive sulphide mineralisation at depth. These will then be targeted by drilling, including diamond drilling if warranted, during the 2007 field season. Mt Lidster Copper Project location map
Malachite Resources NL – Conrad Drilling Results – January 2007 Table 1: Drill Hole Details for holes drilled at Mt Lidster in December 2006 Hole No. Collar Details Northing GDA94 Easting GDA94 Magnetic Azimuth Inclination Final Hole Depth MLRC06 7709959 393653 1360 -530 83m MLRC07 7709946 393662 1850 -500 22m MLRC08 7709949 393669 960 -500 58m MLRC09 7710009 393849 3050 -500 106m MLRC10 7710007 393849 2800 -500 136m MLRC11 7710010 393851 3460 -500 166m MLRC12 7709773 393532 200 -520 76m MLRC13 7709775 393527 3150 -650 40m MLRC14 7709647 393442 3090 -500 64m MLRC15 7709664 393449 3050 -600 58m MLRC16 7709658 393462 3050 -600 82m MLRC17 7709951 393662 950 -610 68m Table 2: Assay Results for holes drilled at Mt Lidster in December 2006 HOLE NO. FROM (m) TO (m) APPROX TRUE WIDTH (m) COPPER % Cu Au g/t Co % COMMENTS MLRC06 61 62 0.6 0.25 <0.1 0.04 6m @ 4.2% Cu intersected vertically above in MLRC02 MLRC07 No significant assays. Hole abandoned due to caving ground before reaching target depth. MLRC08 24 29 3 0.21 <0.1 0.02 Oblique intersection in oxide zone only MLRC09 Including Including Also 76 76 76 89 94 78 77 94 11.6 1.3 0.6 3.2 2.4 9.81 15.05 3.81 0.21 0.75 1.04 0.37 0.02 0.06 0.02 0.03 Massive sulphide intersection MLRC10 And 122 54 123 63 0.5 5 1.14 0.02 0.17 0.34 0.03 <0.01 Oblique intersection south of MLRC09 MLRC11 129 137 4.5 0.25 <0.1 0.01 Oblique intersection to north of MLRC09 MLRC12 43 48 ? 0.45 <0.1 0.09 Very oblique intersection MLRC13 18 21 1.3 0.29 <0.1 <0.01 Intersection in oxide zone only MLRC14 Including And Also 18 18 18 55 42 28 21 56 15.4 6.4 1.9 0.6 0.28 0.43 0.86 5.96 <0.1 <0.1 <0.1 0.64 <0.01 <0.01 <0.01 0.01 This intersection is NW of main structure MLRC15 Including Including 30 34 34 43 41 37 6.5 3.5 1.5 2.13 3.73 6.12 0.12 0.17 0.22 0.03 0.05 0.06 Includes 1m @ 0.12% Co (36-37m) MLRC16 67 71 2 0.47 <0.1 0.05 Deeper cut to MLRC15 MLRC17 51 54 1.5 0.22 <0.1 <0.01 Deeper cut to MLRC08
MAR Price at posting:
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