DRILLING will start next week at the Standon Tin Prospect at Delungra after recent sampling in the area.

Malachite Resources plan to drill a total of about 1500m in two lines of multiple holes stretched across the main part of the anomaly, testing the bedrock to a depth of 50 metres.

The drilling should take about two weeks and the results are expected to be available by late October.

Recent soil geochemical sampling has extended and considerably enhanced the tin-in-soil anomaly in the area.

Almost $1 million has been raised by Malachite Resources Limited to assist mining projects in the local area.

A share purchase plan, where 16,969,006 shares were allotted, raised $933,295.

“Malachite greatly appreciates the very pleasing level of support shown by its shareholders in the current economic climate,” said the company’s managing director Garry Lowder.

The funds raised will be used in the coming months to undertake reconnaissance drilling at the Standon tin discovery at Delungra; advance plans for mining tin at Elsmore; and continue the process of finding a joint venture partner for Conrad, the silver mine near Tingha.

“The success of this SPP (Share Purchase Plan) will allow the company to resume its growth path and position itself to benefit from the recovery in commodity prices that has taken place in recent months,” Dr Lowder said.

© 2009 Inverell Times

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