Malachite Resources Limited ABN

Transcription

1 Malachite Resources Limited ABN Suite 1502, Tower B, 799 Pacific Highway, Chatswood NSW 2067 P O Box 5218, West Chatswood NSW 1515 Tel. (02) Fax (02) ASX Announcement Code: MAR 6 July 2009 MALACHITE S TIN MINING PLANS BOOSTED BY RESULTS OF DRY PROCESSING TEST WORK SUMMARY Malachite s plans for generating cash flow by mining of alluvial tin at Elsmore, near Inverell in northern NSW, have been given a major boost by the results of metallurgical test work recently undertaken for the Company in Germany. Malachite Resources Limited (ASX: MAR) advises that it has received encouraging results from new metallurgical test work, involving dry processing, conducted on a bulk sample of the Karaula Lead alluvial tin deposit 1 at the University of Aachen in Germany. Managing Director, Garry Lowder, summed up the new results by saying: This is a very promising step forward for our Elsmore Project and it has been well worth waiting for. The biggest problems in wet processing alluvial deposits generally are getting hold of enough water in the first place and then disposing of the slimes generated in washing the alluvium afterwards. By removing the fine dusty material that creates the slime problem and drastically reducing the amount of material to be washed into final product, the dry processing step virtually eliminates the sliming issue. This should translate into substantially reduced capital and operating costs and greatly facilitate the Government approvals process. Why Test Dry Processing? The conventional means of recovering tin from an unconsolidated host, such as alluvium, is to use the high density contrast between the tin mineral, cassiterite, and the enclosing material (specific gravities of 7 versus 2.7), and the force of gravity, to separate the tin in a wet medium. This commonly involves devices such as jigs, spirals and shaking tables and as a rule of thumb, it takes about 1 tonne of water to process 1 tonne of alluvium. Most of the tin produced historically in the Inverell region was recovered in this way. The problem for a modern miner is this: there is much more competition for water resources today than there was in the past and, perhaps more critically, washing the alluvium in water generates large volumes of muddy water which requires dams for storage and settling out the fine waste ( slimes ). Environmentally acceptable disposal of those slimes after settling is an attendant issue. 1 For more information about Malachite s tin project at Elsmore please see the Company s ASX Announcement dated 5 November 2008.

2 Malachite Resources Limited Elsmore Tin Project 6 July Malachite became aware of leading edge technology being developed at the University of Aachen in Germany that was having significant success producing concentrates of heavy minerals from beach sands in an air rather than water (i.e. dry rather than wet) medium. This innovative technique had not been tried on tin bearing materials but conceptually there seemed to be a good chance it would also work in the Karaula Lead case, especially given the greater density contrast involved (i.e. compared with rutile, zircon and ilmenite in beach sands) and the generally dry nature of the top few metres of the Karaula material in its natural state. The results for Malachite s first bulk sample provide strong encouragement that the water supply and slime disposal issues can be avoided in the case of the Company s Karaula Lead deposit. Test Results The initial sample, consisting of 260kg of 2mm cassiterite bearing alluvium from the Karaula Lead, was processed with an AKA Flow Dry Density Separator that successfully recovered over 90% of the contained tin into a concentrate that comprised just 7% of the original sample weight. A tin recovery of over 99% was achieved for a reduction of bulk to 37% of the original sample weight. Importantly, the processing removed fine waste material as a collectable dust, leaving clean sandsized grains (see photographs below) that could easily be upgraded to a high grade, saleable cassiterite concentrate by small volume conventional wet gravity processing, such as spirals and tables. Second Bulk Sample It is known that some of the tin grains in the Karaula Lead are significantly larger than 2mm (grains up to 10mm have been seen). Accordingly, a second, 280kg bulk sample of Karaula Lead alluvium has now been prepared and sent to Germany. The sample comprises material in the size range from 2mm to 20mm. This grain size is too large for the AKA Flow Separator and will be tested for recovery of its contained coarse grained cassiterite by air jigging. On Site AKA Flow Testing Plans are also now being drawn up to bring the AKA Flow Separator to Australia for on site pilot scale testing. If those results are as positive as the initial test, the Company will assess the feasibility of starting a small surface tin mining operation on the Karaula Lead at Elsmore using this technology. Potential Production It is envisaged that a clean, dry cassiterite bearing pre concentrate would be produced on site, containing 90 95% of the contained tin in 10 15% of the original bulk. That material would be upgraded to a saleable concentrate by small volume wet processing, which could possibly be conducted on the Company s land at the nearby Conrad Silver Project (Fig. 1). Malachite owns 340ha of freehold land (known as Jadree ) at Conrad and proposes to site new mine facilities for a reopened Conrad Mine on this land. There is plenty of space at Jadree to also carry out the tin concentrate upgrade activity with minimal impact on, but perhaps some benefit to, the potential Conrad operations. In fact, the residue from the upgrading process would be clean sand, suitable for construction or other use at Conrad and elsewhere. Some zircon is also present in the Karaula alluvium and reports to the dry concentrate, from which it may be recoverable as a by product using electrostatic separation. New EL Granted The Company s application for a new exploration licence in the Inverell region has recently been granted, boosting the area of tenements held by Malachite in the district to over 1,000km 2. The new licence (EL7349: Kings Gap ) is in two sections, one partly adjoining Conrad and the other partly adjoining Elsmore (Fig. 1). Recorded alluvial, eluvial and deep lead tin occurrences within the northern part of EL7349 are very numerous (Fig. 2) so it could well provide additional feedstock if a dry processing plant is established in the district. Field work to investigate this potential, focussing on dry surface materials, has begun.

3 Malachitte Resources Limited Elsmore Tin Project 6 July PHO OTOGRAPH HS OF KAR RAULA LEAD DRY CONCENTR C RATE A AFTER PRO OCESSING WITH THE AKA FLO OW DRY DENSITY D SSEPARATO OR In these pho otographs the ossy black and reddish glo graains comp prise cassitterite. The lighter ccoloured grains g quartz. aree mostly q Maaximum grainsize iss 2mm. No ote how th he grains are a clean and dust freee. t right The photogrraphs on the her magniffication aree at a high thaan those o on the leftt.

4 THUNDERBOLTS WAY 29º30'S N GWYDIR HWY 29º45'S ELSMORE GUYRA RD 30º00'S STANNIFER BARRABA RD 30º15'S INVERELL REGION Sydney TINGHA N 150º45'E 151º00'E THUNDERBOLTS WAY 151º15'E LEGEND Prospect Gilgai and Delungra Granites kilometres Town or village Other granites MALACHITE RESOURCES LIMITED Highway Main road Other road EL 7349 Volcaniclastic sediments Felsic and basaltic volcanics Serpentinites INVERELL REGION Location Plan showing Simplified Regional Geology and Malachite Tenements EL boundary Sediments Scale: 1: Date: July 2009 Reference #: INV-0002 Figure 1

5 Middle Creek 29 54'S Inverell Guyra ELSMORE 29 56'S N Copes Creek Conrad 29 58'S 'E STANNIFER LEGEND 'E 'E 0 kilometres 1 2 MALACHITE RESOURCES LIMITED Town or village Main road Other road Creek Sn occurrence Gilgai Granite Other granites Volcaniclastic sediments KINGS GAP PROJECT Kings Gap North Location Plan showing Simplified Regional Geology and Sn Occurrences Scale: 1:70000 Date: July 2009 Reference #: INV-0002 Figure 2

6 Malachite Resources Limited Elsmore Tin Project 6 July For further information please visit the Company s website: or contact: Garry Lowder, Managing Director at (02) or by at: glowder@malachite.com.au G. G. LOWDER Managing Director 6 July 2009 ABOUT MALACHITE Malachite Resources is a Sydney-based resources company that listed on the ASX in November 2002 and is an active explorer for silver, tin, gold, copper and associated base metals in eastern Australia. At the end of June, 2009 the Company had approximately $1 million in cash and no debt. The Company s key assets are: The CONRAD SILVER PROJECT, which is located 25km south of Inverell, in northern NSW, where the Company is evaluating the scope to reopen the old Conrad Silver Mine near Inverell. Conrad has had two previous periods of production but has not operated for over 50 years. Drilling at Conrad by Malachite has intersected narrow high grade, massive sulphide, silver-rich base metal veins, like those mined in the past, and wide zones of lower grade, disseminated and stockwork veined, polymetallic mineralisation. At current prices, silver represents 50% of total recoverable metal value in the Conrad ore and tin, copper, lead and zinc make up the balance. The currently defined mineral resource at Conrad contains approximately 10Moz of silver, or 19Moz of silver equivalent. This resource remains open along strike and at depth. Malachite also has excellent exposure to tin, through its ELSMORE Project, located 20km east of Inverell, where the Company is considering the possible development of a paleo-alluvial tin deposit, known as the Karaula Lead, at the Newstead Prospect. The Karaula Lead appears to have the potential to support a small surface mining operation, which could be developed with low capital and operating costs and generate useful cash flow for the Company. Work is now underway to better quantify the Karaula Lead deposit, determine an appropriate processing route and assess the economic viability of mining. Encouraging tin results have also recently emerged from the Standon Tin Prospect at the Company s DELUNGRA Project, located west of Inverell. The TOOLOOM GOLD PROJECT also in northeast NSW, is based on a forgotten goldfield rediscovered by Malachite. Numerous prospects have been identified, including a significant green fields discovery called Phoenix. The company is systematically exploring Phoenix and the other prospects at Tooloom, which are intrusion-related and have major ore potential. Drill-ready targets have been identified at four prospects within the Tooloom project area. The information in this report that relates to Exploration Results is based on information compiled by Dr Garry Lowder, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Dr Lowder is a full time employee of Malachite Resources and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Lowder consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.