Malachite Resources has formed a strategic alliance with a private Chinese/Australian investment group, Nanyang Mining Resources Investment, which will help advance its portfolio of silver, tin, gold, copper and associated base metal projects in eastern Australia.
Nanyang will become Malachiteâ€™s largest shareholder through an Aus$1,282,500 equity injection in the short term, and, plans to become a joint venture partner at the Conrad Silver Project.
Subject to completion of formal legal documentation and mutual due diligence in coming weeks, a joint venture between Malachite and Nanyang should soon be established at Conrad.
Pursuant to the proposed new joint venture, resource drilling at Conrad is expected to resume by early 2010, fully funded by Nanyang and with the objective of taking the project through to feasibility.
Conrad is 25km south of Inverell in northern New South Wales. Malachite is evaluating the scope to reopen the old mine, which has had two previous periods of production but has not operated for more than 50 years.
Drilling 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 mineralization. The currently defined mineral resource contains about 10 million ounces of silver or 19 million ounces of silver equivalent. This resource remains open along strike and at depth.
Nanyang was first introduced to Malachite by the NSW Department of State and Regional Development and Malachite acknowledges the contribution of officers of that department. Nanyang is a private Australian company whose major shareholder is YK Wong, who was born in Guangdong, China, but migrated to Australia in 1995. He has extensive property development interests in Guangdong and other businesses in China, Hong Kong and Australia.
Malachite also has excellent exposure to tin, through its Elsmore Project, 20km east of Inverell, while encouraging tin results have also emerged from the Standon Tin Prospect at the Delungra Project, west of Inverell.
The Tooloom Gold Project, also in north-eastern NSW, is based on a forgotten goldfield rediscovered by Malachite. Drill-ready targets have been identified at four prospects within the project area and a new diamond drilling program will start shortly.