MALACHITE Resources NL, the company that has been in discussions with landholders to mine a tin deposit at Swinton east of Inverell, is also considering reopening an old silver mine, 25km south of Inverell.

Last week Malachite announced that it had raised $312,140 through a placement of 5,202,335 ordinary fully paid shares at an issue price of six cents.

The company said the funds raised provide additional working capital for ongoing work at each of the Company’s key assets.

As well as the Elsmore Project, where Malachite is considering the possible development of a paleo-alluvial tin deposit, known as the Karaula Lead, at the Newstead Prospect, they announced they are considering reopening the Old Conrad Silver Mine, 25km south of Inverell.

Conrad has had two previous periods of production but has not operated for over 50 years.

A statement from Malachite said drilling at Conrad 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 per cent of total recoverable metal value in the Conrad ore and tin accounts for about 25 per cent of the value,” the statement said.

“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.

“The Company is now seeking a joint venture partner to fund the project through to feasibility and a development decision.”

Malachite also said encouraging tin results have recently emerged from the company’s Delungra Project.

© 2009 Inverell Times

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