Deep bonanza silver hits open up NSW precious and base metals project
mineweb.com
The Conrad precious and base metals project near Inverell in northern New South Wales has a broadening picture following release today of some more high grade intersections at depth near old mine workings.
Author: Ross Louthean
Posted: Thursday , 08 May 2008
PERTH -
Two drilling rigs are now working on the Conrad project for Malachite Resources NL (ASX: MAR) following more high grade assays that included a 2.6m section in hole CMRD63 of 430 grams/tonne silver, 0.2% copper, 8.95% lead, 4.35% zinc and 0.1% tin. This was within a wider intercept of 7.49m @ 163 g/t Ag, 0.09% Cu, 3.71% Pb, 1.66% Zn and 0.1% Sn.
Four new drill holes were released and prompted managing director Garry Lowder to say it was positive to get high grade hits as deep as 350 metres.
"It's also nice to see well developed mineralised envelopes adjoining the high grade lode in holes 63 and 64, enhancing the potential for relatively low-cost, mechanised underground mining of this lode."
Hole 63 had 7.49m @ 163 g/t Ag, 0.09% Cu, 3.71% Pb, 1.66% Zn and 0.1% Sn, while 64 produced 7.4m @ 121 g/t Ag, 0.04% Cu, 2.76% Pb, 0.56% Zn and 0.08% Sn.
Results are awaited on drilling at the south eastern end of the Conrad Lode, near and beyond the old Davis shaft but assays are awaited.
"It is important to appreciate that most of the current drilling is in widely spaced holes, nominally 100m apart along strike and down dip. As the drilling programme proceeds the best intersections, which are interpreted to be within discrete ore shoots, are followed up with more closely spaced drilling."
"Allowing for the concentration of high grade ore into shoots, Malachite's current drilling is providing much encouragement, with a high rate of excellent intersections suggesting large and well developed ore shoots."
Malachite is evaluating re-opening the old Conrad mine which had two previous production periods, but has not operated for over 50 years.
Drilling 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.
The company said that at current prices silver represents 30-40% of total metal value in the Conrad ore. Preliminary economic modelling suggests a mineral resource containing 8-10 million oz silver plus base metals would be sufficient to support reopening the mine.
Drilling to establish that resource continues.
Malachite also has exposure to tin, through its Elsmore prospect near Inverell where it is considering possible development of an alluvial tin deposit on the Newstead zone.
Lowder said this new discovery could be developed at low capital cost and has the potential to generate cash flow while the much larger Conrad project is taken through bankable feasibility, mine planning and development. |
