summary - kitco · joes gully back creek pine gully phoenix ± legend e k hardrock workings...

MALACHITE RESOURCES LIMITED

QUARTERLY REPORTDECEMBER 2009

SUMMARYDuring the Quarter Malachite announced the establishment of a strategic alliance with NANYANG MINING RESOURCES INVESTMENT PTY LIMITED, beginning with a significant equity investment in the Company, making Nanyang Malachite’s largest shareholder, with 8.6% of issued shares. The alliance was established with the expectation that it would lead on to further new business through joint ven-tures, both on existing Malachite projects and on possible new acquisitions. The first joint venture for the Nanyang alliance is intended to be at the CONRAD SILVER PROJECT and negotiation of a joint venture agreement to this end was in progress at Quarter end.

A diamond drilling program at the TOOLOOM GOLD PROJECT commenced during the Quarter, aimed at a preliminary test of three prospects, namely Pine Gully, Back Creek and Joes Gully. Assay results have been received for holes drilled at the first two of these prospects, with results that are encour-aging geologically but disappointing in terms of gold grades encountered. The drilling program was interrupted in December when a major bushfire swept through the area, forcing evacuation of per-sonnel for safety reasons. The drilling program resumed in early January.

At the ELSMORE TIN PROJECT work continued to focus on bulk sampling of alluvial deposits for evaluation of recoverable tin content using the Company’s own cone concentrator. The program was suspended in December due to a shortage of process water following a prolonged dry spell. Rain in recent weeks has replenished the water supply on the Company’s property near Conrad (i.e. Jadree), which is where the cone concentrator is located and has been put to work. Processing of the remaining samples will resume by the end of January.

A preliminary reverse circulation percussion drilling program took place in October at the DELUNGRA TIN PROJECT. The drilling targeted near surface tin in hard rock, beneath a strong tin-in-soil anomaly at the Standon prospect. Some significant tin values were intersected locally, but the large, bulk tonnage model was not supported by the results achieved.

The Company made placements during the Quarter which raised $1,582,000 in new working capital. Exploration expenditure during the December Quarter was approximately $622,000.

ABN 86 075 613 268

Malachite project locatioN Map

www.malachite.com.au

Quarterly Report DECEMBER 2009


coNrad


The principal activity relating to CONRAD during the December Quarter has been the negotiation and documenting of a joint venture with NANYANG MINING RESOURCES INVESTMENT PTY LIMITED. At the end of December that process was still underway.

Establishing a joint venture with Nanyang at Conrad has necessarily been a slow process, as there are significant cultural, language and business invest-ment barriers that need to be overcome. While these delays are undoubtedly frustrating to Malachite and its shareholders, it is obviously very important that a relationship that is intended to have a long term future be set up on a very sound basis. Both sides need to have a clear understanding of their rights and obligations under the proposed structure and it is essential that Nanyang, as a new player in the Austra-lian mining industry, fully comprehends the business it is getting into. It should be noted, for example, that an unincorporated joint venture structure, which is the usual form of joint venture in the Australian mining sector, is a new business concept to many Chinese investors. Considerable effort has gone into explaining how such a structure works, how it differs

from a more conventional, incorporated structure and the reasons for entering into this form of agreement in the first place.

Malachite has presented Nanyang with an unincorpo-rated joint venture document which was drafted along the lines of the AMPLA1 model. The core commercial clauses of this document have been translated into Chinese (by Nanyang’s Sydney representative) and forwarded to the Nanyang principals. Comments from Nanyang’s Chinese solicitors have now been received and are being considered by Malachite and its legal advisers.

Field work at Conrad during the Nanyang negotiation period has been limited largely to environmental maintenance.

toolooM

After effectively being on care and maintenance for the past year, the TOOLOOM GOLD PROJECT was reactivated in the December Quarter. The prime objective of the new program at Tooloom was to drill at least two holes into each of three prospects where encouraging surface gold values have been encountered previously by the Company (Fig. 1). Details of the drill holes at Tooloom are summarised in Table 1 below.

The first prospect to be tested was PINE GULLY (Fig. 2), where old workings are scattered along a well defined, northwest-oriented fault structure that is exposed for about 1km, before disappearing under younger rock cover at both ends. Strong shearing, brecciation and gold-rich quartz veins have been mapped and sampled at surface, especially inside one of the old adits. The two drill holes at Pine Gully were designed to test this structure at depth.

Both holes clearly intersected the fault structure where it was expected and the second hole in particular (beneath No. 2 adit) encountered a broad zone of alteration, brecciation and veining, over 30m wide and centred on the actual fault itself, which is expressed by very strong brecciation over an interval of about 1m, and reminiscent of the features seen inside No. 2 adit . Some sulphide mineralisation is associated with the alteration, brecciation and veining, with arsenic

NSW

NEW

EN

GLAND H

WY

PACI

FIC

HW

Y

SYDNEY

INVERELL

NEWCASTLE

COFFS HARBOUR

LISMORE

TOOLOOM GOLD PROJECT

1 AMPLA is the Australian Mining and Petroleum Law Association

SYDNEY

INVERELL

NEWCASTLE

COFFS HARBOUR

CONRAD SILVER PROJECT



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KKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK

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152°

20'E

152°

25'E

28°40'S

28°35'S

EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263EL 6263

Paddys Flat

4

kilometres20

EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714EL 5714

Undifferentiated fluvial depositsQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternaryQuaternary

VolcanicsTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiaryTertiary

Clarence-Moreton Basin sequenceLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - JurassicLate Triassic - Jurassic

Moonbi Supersuite: Cullens Ck & RivertreeGranite, Morgans Ck & Stanthorpe Monzogranite, undiff. diorite intrusions

Early TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly TriassicEarly Triassic

Tooloom Diorite SuiteLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early TriassicLate Permian - Early Triassic

Wandsworth Volcanic Group: GilgurryMudstone, Drake Volcanics, RazorbackCk Mudstone

PermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermianPermian

Emu Creek FormationLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early PermianLate Carboniferous - Early Permian

GEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGY

Clarence River Supersuite: Jenny Lind Granite,Koreelah Ck Granodiorite, Bruxner Adamellite

JOES GULLY

BACK CREEK

PINE GULLY

PHOENIX

±

LEGENDEEEEKKKK

Hardrock workings

Alluvial workings

EL 5714 (Rivertree)

EL 6263 (Tooloom)

River or creek

Road

Figure 1. Geological map of the Tooloom Gold Project, showing prospect locations, includingPine Gully, Back Creek and Joes Gully, which are targets for the current phase of drilling, andPhoenix, which has been drilled previously

2km0





((((

6 826 000 mN

6 826 500 mN

444

500

mE

445

000

mE

6 825 500 mN

444

500

mE

445

000

mE

6 826 000 mN

6 826 500 mN

444

000

mE

No Window

Jurassic Clarence-Moreton Basinsandstone and conglomerate

Permo-Triassic Emu Creek Formationsandstone and siltstone(locally carbonaceous)

GEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGYGEOLOGY

±

LEGEND

EEEE Adit and shaft

Creek

Track

Figure 2. Sketch map of the Pine Gully Prospect area, showing locations of the two main adits,the Pine Gully Shear Zone and the two holes drilled to date

200m0

Unconformity

Drillhole showing projected hole trace(

PGDD02

PGDD01No. 2 ADIT

No.1 ADIT

Interpreted position of Pine Gully Shear

DECEMBER 2009

Page - 6 -

Quarterly Report


values up to 3100ppm As and traces of lead and zinc (up to 885ppm Zn), but unfortunately very little gold was reported for the intersections in these two holes (anomalous gold values were of the order of 0.1g/t to 0.3g/t Au).

The results are geologically encouraging, in that the Pine Gully shear zone is clearly a major structure with strong ground preparation for the introduction of min-

eralisation (Fig. 3). The weakness of the gold encoun-tered in the first two drill holes was somewhat surpris-ing and is thought to reflect a likely concentration of gold mineralisation into defined shoots within the more extensive shear zone. Both drill holes would appear to have missed any ore shoots that may be present but the drill core and assays obtained will be interpreted further to assess whether a vector pointing to better grades can be detected in the results.

Figure 3: Brecciated Emu Creek Beds from within the Pine Gully Shear Zone

The second prospect to be tested by drilling was BACK CREEK, where the target was a stockwork quartz vein system that contains visible gold in outcrop at surface (Fig. 4). Two holes were drilled beneath the outcrop-ping stockwork. Some veining and alteration were intersected (Fig. 5), probably correlating with the veins observed at surface. These veins contain quartz, car-bonate and sulphide mineralisation (mainly arsenopy-rite). Very little gold was reported in the assays (maxi-

mum 0.3g/t Au) but this is perhaps not too surprising, given the coarse grain size of the gold seen at surface (Fig. 4) and the statistically low probability of actually capturing one of these “micro-nuggets” in drill core. At this stage it is thought that the density of veins (i.e. number per metre) in the two Back Creek drill holes is too low to result in economic grades for the rock as a whole, even though the veins themselves may carry very high gold values.

Figure 4: Coarse free gold enclosed in quartz veins outcropping at the Back Creek Prospect

Gold

Tooloom continued ....



Figure 5: Early quartz veins cut by later quartz-carbonate-sulphide veins in drill core at the Back Creek Prospect

For example, careful selective sampling of gold-bearing quartz veins in outcrop yielded gold values in excess of 100g/t Au but, because there is virtually no gold in the enclosing host rock, it would be nec-essary for such veins to represent 10% of the rock as a whole for a grade of 10g/t Au to be achieved. Such a vein density was not encountered in either drill hole at Back Creek.

The third prospect to be tested was JOES GULLY, which is characterised by the abundance of coarse gold, gold nug-gets and composite vein-quartz/gold nuggets (Fig. 6) that have been recovered in modern and historic alluvial min-ing below the target area. Drilling at Joes Gully comprises deepening of two reverse circulation percussion holes drilled for Malachite several years ago. The outcome of drilling at Joes Gully will be reported after drilling is com-pleted and assay results have been received.


Figure 6: Composite gold-vein quartz nuggets from Joes Gully

Drilling at Joes Gully was suspended in early Decem-ber when a serious bushfire, started by lightning, swept through the area. All personnel were evacuated safely but damage occurred to the drilling contractor’s ancillary drilling equipment and Malachite lost some poly-pipe and water tanks. The fire also threatened the field camp at Tooloom and Malachite personnel were active in fighting this fire, with the result that no

damage was suffered at the camp itself. Figure 7 (over page) illustrates the fire that threatened the Tooloom field camp and the “before and after” impact of the fire at the Joes Gully drill site.

Drilling resumed at Joes Gully in early January and will be completed with two holes to about 400m depth by the end of the month.



elSMore

Some additional trenching for bulk sampling purposes was carried out within the Karaula Lead at Newstead, within the Elsmore EL area, during the Quarter. Samples collected from those trenches, together with a backlog of samples from earlier trenching, were systematically treated with Malachite’s cone concentrator, located at the Company’s ‘Jadree’ property, near Conrad.

NSW PACI

FIC

HW

Y

NEW

EN

GLA

ND

HW

Y

SYDNEY

INVERELL

NEWCASTLE

COFFS HARBOUR ELSMORE TIN PROJECT

The cone concentrator produces a modest quan-tity (ca. 50-250g) of tin-rich concentrate which is subsequently assayed for total tin, allowing back-calculation of the recoverable tin in the original bulk sample.

This work had to be suspended in December due to a shortage of process water, following a long dry spell. Since then there has been sufficient rain to replenish the dams at Jadree and processing of the bulk samples will resume in late January.


Table 1: Details of Drilling at Tooloom: November 2009 to January 2010

PROSPECT HOLE No.COLLAR COORDINATES

TOTAL DEPTH (m)

AZIMUTH oM

INCLINATION (deg)

EASTING NORTHING AT COLLAR AT END OF HOLE

Pine GullyPGDD01 444523 6826113 332.6 026 -50 -44.5PGDD02 444523 6826113 419.0 001 -50 -44

Back CreekBCDD01 440908 6828593 302.3 191 -50 -43.5BCDD02 440908 6828593 365.5 240 -50 -42.5

Joes GullyJGRD01 441540 6832729 374.5 258 -50 -26.5JGRD02 441540 6832729 378.2 078 -50 -21.0


Quarterly Report

Figure 7: Scenes from the December bushfire at Tooloom

DECEMBER 2009

The Tooloom field camp under threat from the fire and after extinguishment, showing how close it came to the camp

The Joes Gully drill site before and after the December bushfire


Quarterly Report

The soil anomaly is underlain by poorly outcropping Dumboy-Gragin Granite, with evidence of quartz-tourmaline-cassiterite veining and greisen within the granite. The objective of the drilling was to ascertain whether the soil tin anomaly reflected a broad zone of stockwork veining, implying a low grade, bulk tonnage style of mineralisation, or was due to a more limited number of narrow, higher grade veins that are shed-

ding into the soil. The results indicate that the latter interpretation is more likely in this case.

Stream sediment geochemistry within EL7011 has identified a further two anomalies with signatures similar to that at Standon and these will be followed up in the field early in 2010.

Page - 10 - www.malachite.com.au Page 10

delUNGra

A program of reverse circulation percussion drilling, involving 26 holes and a total of 1,605metres, took place at the Standon Tin Prospect during the December Quarter. The drilling was targeted on a large, well defined tin-in-soil geochemical anomaly at Standon, one of several prospects identified to date within Malachite’s EL7011.

DECEMBER 2009

SYDNEY

INVERELL

NEWCASTLE

COFFS HARBOUR

DELUNGRAPROJECT

No work took place at the RIVERTREE Silver Project, where Alcyone Resources Limited (formerly Macmin Silver Limited) is Operator and holds a 75% interest.

During the Quarter the Company received and accepted the offer of a new Exploration Permit for Minerals (EPM18166) at PIKEDALE in southern Queensland, located some 30km west of Stanthorpe.

Grant of the tenement by the Queensland Government is expected in the next Quarter.

The Pikedale tenement covers a major northwest-trending structure that includes the old Pikedale silver mine. This feature is reminiscent of the structure that controls the Conrad deposit and the Pikedale mine appears to have similar mineral and metal assemblages to those at Conrad, although with some gold as well in the Pikedale case.

other projectS


Quarterly Report Quarterly Report

www.malachite.com.au Page 11

During the Quarter the Company made two share placements that together raised $1,582,000 in working capital.

Exploration expenditure during the period was approximately $622,000.

corporate

The March Quarter of 2010 is expected to see a resumption of drilling at Conrad, pursuant to the joint venture with Nanyang. Reconnaissance drilling will also be completed at Tooloom, with follow up detailed field work anticipated at Joes Gully, applying new knowledge acquired as a result of the drilling.

An initial field program is planned for Pikedale, utilising the VLF-EM technique that has been so effective at Conrad. At Delungra, field follow up is planned for the two Standon-type anomalies currently identified.

At Elsmore, the focus will be on completion of cone concentrator testing of bulk samples. Efforts will also be made to model the economics of mining and dry processing tin-bearing alluvials, with a view to estimating a possible cut-off grade and the potential resource that may exist above this grade in the Elsmore district.

ForWard plaNS

For further information please contact Managing Director, Garry Lowder, on (02) 9411 6033 or by email at [email protected], or visit the Company’s website at www.malachite.com.au.

G.G. LOWDERManaging Director28 January 2010

The information in this report that relates to Exploration Results is based on information compiled by Dr Garry Lowder and Mr Russell Meares, who are Fellows of the Australasian Institute of Mining and Metallurgy. Dr Lowder and Mr Meares have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Aus-tralasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Lowder and Mr Meares consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.

FUrther iNForMatioN

DECEMBER 2009

summary - kitco · joes gully back creek pine gully phoenix ± legend e k hardrock workings...

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