1.0 SUMMARY & COMMENTS
Macmin Silver Ltd (Macmin) is a silver focused company whose primary projects are the Texas Silver Project, S.E. Queensland, Australia where the Twin Hills Silver Mine is nearing production and the Tally Ho Project near Mackay, Central Queensland. Macmin has exposure to gold by way of an 15% equity in New Guinea Gold Corporation (NGG) and a 1% NSR royalty on production by NGG. In addition, Macmin maintains equity investments in junior Australian explorers, Malachite Resources NL and Frontier Resources Ltd.

• Commissioning of the Electro-winning plant (EM-EW) has been ongoing during the Quarter. Stripping of part of the leachate solution through the EM-EW plant resulted in the production of 40kg of silver powder. Silver powder production is expected to gradually build up over the next quarter.
• Drilling at the Tally Ho Silver Project continues to highlight the resource potential of the silver and polymetallic mineralisation.
• New Guinea Gold commenced gold processing at the Sinivit Mine in May with the first gold pour carried out in July

2.0 TEXAS SILVER MINES PTY LTD
The Texas Project (EPMs 8854, 11455, and 12858; ML 5932 and ML 50161) is located 100km west of Stanthorpe. Texas Silver Mines Pty Ltd is a wholly owned subsidiary of Macmin Silver Ltd.

2.1 Twin Hills (ML 50161) 2.1.1 Development/Commissioning Activities Summary.
Commissioning and commercial production of silver has proceeded more slowly than anticipated at the Twin Hills Silver Mine. Fine-tuning of the leach silver recovery circuits is expected to take several more months with silver production gradually building up over this period.

Delays in commissioning were caused primarily by the following:

• A failure in the new jaw crusher, caused by a manufacturing flaw which resulted in this crusher being out of action for 8 weeks. A hire crusher was utilised for part of that time. This problem has been fixed and a claim has been made against the manufacturer.
• The need to recruit and train personnel in the tight supply situation for mining and processing personnel has so far prevented a second crushing shift being implemented. On site training is a priority.
• Problems were encountered with the conveyor - hopper units which slowed the crush, agglomerate and stacking of the heaps (known as the CAS operation). We are currently looking at ways to improve the stacking function.

In addition, the build up of material for processing and a time lag for recovery of metal is a typical feature of heap leach operations. As a result of the above delays silver powder production did not recommence until mid June 2007.

Silver has been building up in the solution pond, which is sized for anticipated production levels, from the irrigation of the lower grade (approx. 59g/t silver) material used to make the initial heaps. This material was processed during optimisation of the screening circuit so that any reduction in recovery of silver due to oversize product would only impact on the lower grade ore. Ore >80g/t silver is now being placed on the heaps, which will result in progressively higher silver leaching rates as further heaps come on line.

The manufacturers, Electrometals, are engaged with Macmin staff in commissioning and fine-tuning the electrowinning plant to efficiently produce a fine silver powder from the leachate solution. Approximately 40kg of silver has been produced during trials on several banks of cells in the plant and work is continuing to determine the optimum plant operating parameters for silver powder production.

The following mine information was announced as at 9th July:

A total of 385,000 tonnes has been mined as follows:

- Ore	116,000 tonnes
- Low grade stockpiles	54,000 tonnes
- Waste	215,000 tonnes

The mining fleet is performing well and is about to be expanded to ensure continuity of ore for processing as production ramps-up. The mining fleet is supplied by a contractor and operated by the Company.

Ore stockpile:

A stockpile of 43,000 tonnes is being maintained ready for crushing.

Processing:

• 73,000 tonnes of agglomerated and stacked ore is under irrigation with leach solution.
• At present there is approximately 3,800kg (122,000oz) of silver estimated as ultimately recoverable in the current heap and the leachate solution.

In late May the appointment of a new Process Manager with extensive heap leach experience provided further opportunities for system optimisation and assisted with the training of processing personnel.

The CAS operation is now operating at close to expected hourly throughput levels, albeit on a single shift per day basis. The Company is evaluating the relative merits of recruiting and training additional personnel to run a second shift as originally intended or increasing the capacity of the CAS circuit to achieve desired throughput using existing personnel.

3.0 EXPLORATION

3.1 Tally Ho Silver Project

The drilling programme (RC and Diamond) undertaken during the Quarter was very successful at providing additional information on the silver and base-metal mineralisation hosted by the Tally Ho breccia.

Two ASX Releases (June 7 and July 10) detail the assay results obtained from the drilling programme up until early July.

The results received to-date reinforce the success of the earlier drilling undertaken in 2006. The grade potential was enhanced for both silver (best result 1m(31-32m) at 2330g/t from GRRDD6) and zinc (best result 1m (64-65m) at 30.3% from GRDD7).

The current round of drilling was undertaken on a regular sectional plan with sections being 20m apart, over a strike length of 180m, in order to fill in the previous drilling data and to allow Macmin to determine, with a degree of confidence, the orientation of the breccia pipe/mineralizing system.

On receipt of all assays, Macmin hopes to be due to establish a three-dimensional ‘picture' of the breccia pipe and associated mineralisation, thereby allowing for the evaluation of the Tally Ho Project.

3.2 Mount Gunyan

Drilling on the Mt Gunyan Prospect is currently underway, but assay results have taken longer to obtain than anticipated. The aim of the programme is to add to the current resource base by testing for depth extensions and strike extensions to the known silver mineralized zones. Drilling will continue during the coming Quarter.

3.3 Macmin-Malachite Joint Venture: Boonoo Boonoo and Rivertree

Malachite Resources N.L. (Malachite) advised Macmin during the first Quarter that it would contribute to ongoing exploration in order to maintain its 25% interest in the Joint Venture.

Macmin formulated an exploration programme for the remainder of 2007, which was approved by Malachite during the Quarter.

There was no field activity carried out on the Joint Venture tenements during the Quarter.

All releases to the ASX can be viewed on the Macmin website, www.macmin.com.au. However, some of the more important releases this quarter are included in this report at Appendix A.

4.0 CORPORATE
The Company made presentations to fund managers, financial analysts, journalists, investors and shareholders in Stockholm, Paris, Brussels, Amsterdam, Monaco, London and Geneva in June. 5.0 INVESTMENTS
Macmin maintains equity investments in the following public companies with exposure to the precious and base metals sectors. Information and releases about these companies' activities can be found on each company's website.

Company	Shares	Options	Market Value 30 June 2007
New Guinea Gold Corporation (TSX) www.newguineagold.ca	17,847,020	-	$9,300,000
Malachite Resources NL www.malachite.com.au	1,500,000	-	$540,000
Frontier Resources Ltd www.frontierresources.com.au	5,425,000	5,164,343	$1,140,000

6.0 NEW GUINEA GOLD
New Guinea Gold Corporation (15% Macmin) continued with exploration and mine development during the quarter and press releases by NGG released during the quarter are available at www.newguineagold.ca.
The most significant press releases from NGG during the quarter are attached at Appendix B.

D.M. O'Neill
MANAGING DIRECTOR

The information in this report that relates to Exploration Results is based on information compiled by Denis O'Neill, who is a Member of The Australasian Institute of Mining and Metallurgy. Denis O'Neill is a full-time employee of the company.

Denis O'Neill has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Denis O'Neill consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

APPENDIX A
ASX RELEASES SINCE LAST QUARTERLY REPORT

2nd April 2007
SILVER PRODUCTION
Macmin Silver is pleased to announce that the first production of silver powder from the Twin Hills Silver Mine at Texas, Queensland was achieved on 30th March 2007.

This milestone completes the passage of mine ore through the entire mining and production circuit, including the Electrometals silver extraction electrowinning plant, to finished product. Production of silver powder will gradually increase over the next 3 to 6 months to an annualised rate of 2.5 million ounces of silver. If, at that time, market conditions are appropriate, Macmin will consider a further gradual increase in annualised production to approximately 4 million ounces of silver.

The strategy of producing a silver powder and seeking direct sale of the powder is aimed at lower production costs, elimination of refining costs and potentially obtaining a premium price for this unique form of silver. Silver powder is used in a number of industrial situations such as electronics and antibacterial applications and is usually obtained by breaking down silver ingots.

Supplying the powder as a mine gate product will be the subject of substantial marketing initiatives as production increases. Any silver powder production which does not find an immediate market can be readily refined and sold in solid form.

In respect to the Non-Standard Environmental Authority (EA) in our ASX release dated 5th March 2007 we note that we have now received the EA conditions from the Environmental Protection Agency (EPA) and have agreed in writing to those conditions. We await receipt of final documentation from the EPA. Mining, crushing, stacking, leaching and silver production is continuing.

Management will continue to optimise processes and equipment utilisation as the mine workforce gains experience and production levels are built up.

The Board would like to take this opportunity to thank staff, shareholders, suppliers and contractors for their support during the mine construction phase and into the future as the mine develops.

Yours faithfully,
MACMIN SILVER LTD

R.D. McNeil
Executive Chairman

4th May 2007
MACMIN GRANTED ‘ENVIRONMENTAL AUTHORITY'
FOR TWIN HILLS SILVER MINE
Macmin Silver Ltd has been granted an ‘Environmental Authority' (Level 1 non-code compliant mining project) by the Environmental Protection Agency for the Twin Hills Silver Mine at Texas in S.E. Queensland. The Environmental Authority takes effect from 23rd April 2007 with the anniversary date being 1 January each year. This Environmental Authority is granted under the Environmental Protection Act 1994 and includes conditions to minimise environmental harm caused, or likely to be caused, by authorised mining activities.

Macmin looks forward to working with the EPA to ensure all relevant environmental safeguards are fully implemented during the life of the operation at the Twin Hills Silver Mine and subsequent rehabilitation of the mining lease area.

Yours faithfully,
D.M. O'Neill
MANAGING DIRECTOR

18th June 2007
TALLY HO DRILLING INTERCEPTS SILVER TO 2330g/t, GOLD TO 23g/t,
AND ENHANCES RESOURCE POTENTIAL
Macmin Silver Ltd has received and assessed the assay results from the initial 10 holes of a 31 hole drilling campaign (5,742 metres) recently completed at the Tally Ho silver project near the town of Mackay in Central Queensland. The results are very encouraging and continue to highlight the near surface prospectivity of the Tally Ho breccia to host significant silver and polymetallic mineralisation.

Highlights of the drill holes are as follows:

GRDD5	-	24m (12-36) @ 132g/t Ag, 0.10g/t Au, 2.79% Zn, 0.25% Cu
	Including	4m (20-24m) @ 190g/t Ag, 0.05g/t Au, 8.11% Zn, 0.37% Cu
GRDD6	-	9m (28-37m) @ 662g/t Ag, 0.43g/t Au, 3.28% Zn, 0.67% Cu
	Including	4m (28-32m) @ 1349g/t Ag, 4.8% Zn, 1.25% Cu and 0.70g/t Au
		12m (39-51m) @ 67g/t Ag, 4.20% Zn, 0.22% Cu
		1m (161-162) @ 317g/t Ag, 23.0g/t Au
GRDD7	-	4m (63-67m) @ 293g/t Ag, 11.73% Zn, 0.69% Cu, 0.46% Pb
GRDD8	-	23m (23-46m) @ 230g/t Ag, 2.64% Zn, 0.43% Cu, 0.43% Pb
	Including	5m (30-35m) @ 704g/t Ag, 0.68g/t Au, 6.58% Zn, 1.19% Cu, 1.72% Pb
		7m (55-62m) @ 233g/t Ag, 0.42g/t Au, 4.26% Zn, 0.39% Cu
GRRC37	-	4m (34-38m) @ 84g/t Ag, 11.15% Zn
		2m (41-43m) @ 76g/t Ag, 12.65% Zn

Drilling
The drilling programme which commenced in April 2007, at the Tally Ho Project near Mackay, in Central Queensland, was completed at the end of May 2007. The programme consisted of 18 reverse circulation holes (2362mRC) and 13 reverse circulation pre-collared diamond holes (1780mRC & 1600mNQ). Results for the initial portion of the programme have recently been received, with the best intercepts shown in Table 1.

Results for the remainder of the drill holes (both reverse circulation and diamond drill holes) will be progressively received over the coming months, with processing of the diamond drill core being on going, and samples being dispatched for assay over the coming weeks.

The results received to date support that of the earlier drilling undertaken in 2006, and have again enhanced the grade potential of both Ag (best result 1m (31-32m) at 2330g/t from GRDD6) and Zn (best result 1m (64-65m) at 30.3% from GRDD7), and indicate greater down hole mineralized intervals at these elevated levels than previously encountered. The results received to date suggest that the upper central & northern areas of the breccia pipe / mineralized zone are the most strongly mineralized.

These results also demonstrate the continuity of the silver-zinc mineralization previously encountered and have enhanced the grade potential of the system in terms of both Ag & Zn and to a lesser extent Cu & Pb.

Although gold results are erratic, the potential to locate areas rich in gold-silver mineralization had been identified in the earlier drilling (previous ASX releases) :

GRRC3	-	4m (26-30m) @ 0.98g/t Au, 170g/t Ag, 1.68% Zn, 0.34% Cu, 2.04% Pb
GRRC11	-	6m (112-118m) @ 1.36g/t Au, 109g/t Ag, 2.18% Zn, 0.27% Cu
GRRC29	-	2m (76-78m) @ 1.07g/t Au, 507g/t Ag, 23.3% Zn, 0.72% Cu
GRDD1	-	1m (170-171m) @ 3.34g/t Au, 1010g/t Ag
GRDD2	-	1m (110-111m) @ 12.25g/t Au, 133g/t Ag

And the recent drilling has again supported this with one hole returning the following:

GRDD6

-

1m (161-162m) @ 23g/t Au, 317g/t Ag

The current round of drilling was undertaken on a regular sectional plan, with sections being 20m apart, over a strike length of 180m, in order to infill the previous drilling data and to allow Macmin to determine, with a degree of confidence, the orientation of the breccia pipe / mineralizing system.

On receipt of all assay results, these will be reviewed fully in light of the intersected geology and Macmin hopes to be able to establish the three dimensional ‘picture' of the breccia pipe and associated mineralization, allowing further evaluation of the Tally Ho project.

D.M. O'Neill
MANAGING DIRECTOR

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Denis O'Neill, who is a Member of The Australasian Institute of Mining and Metallurgy. Denis O'Neill is a full-time employee of the company.

Denis O'Neill has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Denis O'Neill consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Table 1.

				• Assays				*In ground Value
Hole No.	Interval From To (m)	Length (m)	Silver (g/t)	Gold (g/t)	Copper (%)	Lead (%)	Zinc (%)	Silver Equiv. (g/t)
GRDD5	12-36m incl 20-24m incl 28-34m	24m 4m 6m	132 190 288	0.10 0.05 0.29	0.25 0.37 0.37	0.13 0.35 0.07	2.79 8.11 2.2	450 1021 586
	66-74m	8m	37	0.07	0.07	0.02	0.44	95
	112-157m	45m	26	0.08	0.02	0.01	0.01	36
	161-166m	5m	37	0.18	0.13	0.09	0.01	77
GRDD6	26-66m	40m	184	0.23	0.26	0.01	2.50	483
	incl 28-37m	9m	662	0.43	0.67	0.13	3.28	1132
	incl 39-51m	12m	67	0.20	0.22	0.01	4.20	509
	68-87m	19m	36	0.04	0.13	0.00	0.45	108
	101-105m	4m	51	0.03	0.00	0.14	0.01	73
	161-165m	4m	94	5.84	0.17	0.07	0.01	445
	253-257m	4m	97	0.03	0.01	0.00	0.00	102
GRDD7	56-134m	78m	60	0.07	0.17	0.05	1.28	218
	incl 63-67m	4m	293	0.04	0.69	0.46	11.73	1526
GRDD8	23-46m	23m	230	0.19	0.43	0.43	2.64	586
	incl 30-35m	5m	704	0.68	1.19	1.72	6.58	1647
	52-94m	42m	68	0.15	0.17	0.05	1.80	278
	incl 55-62m	7m	233	0.42	0.39	0.06	4.26	728
	115-147m	32m	44	0.03	0.13	0.00	0.23	94
	incl 123-128m	5m	106	0.02	0.27	0.00	0.63	224
GRRC33	no significant mineralisation
GRRC34	108-112m	4m	40	-	-	-	0.5
GRRC35	no significant mineralisation
GRRC36	56-60	4m	90	-	-	-	0.39
GRRC37	28-52m	24m	40	0.10	0.15	0.19	5.51	585
	incl 34-38m	4m	84	0.14	0.21	0.54	11.15	1170
	incl 41-43m	2m	76	0.18	0.13	0.18	12.65	1274

• True widths of the intervals quoted are not listed, as the orientation of the mineralised zone is uncertain.

* Silver Equivalent

Macmin Silver Ltd is a silver exploration and mining company and as such reports silver equivalent values to provide shareholders and investors with a more easily quantifiable basis for comparison with other silver-bearing projects where the metal ratios are different from those at Tally Ho.

It is the Company's opinion that each of the elements included in the Silver equivalent calculation have a reasonable potential to be recovered if the project proceeds to mining.

The calculation process and metal prices used in the calculation of Silver equivalents are:

	Metal			Price in AUD		Factors		Value Calculation	Metal value in AUD
		A		B		C
1	Silver		g/t	$15.00	per oz	31.1035	gms per oz	1A x 1B/1C =	M
2	Gold		g/t	$800.00	per oz	31.1035	gms per oz	2A x 2B/2C =	N
3	Copper		%	$4.66	per lb	0.045359	% per lb	3A x 3B/3C =	O
4	Lead		%	$0.66	per lb	0.045359	% per lb	4A x 4B/4C =	P
5	Zinc		%	$2.00	per lb	0.045359	% per lb	5A x 5B/5C =	Q
Sum of metal values								S =	M+N+O+P+Q
Metal equivalent in Silver g/t								ME =	S / 1B x 1C (g/t)

The Silver equivalent values are tabulated as silver is the metal of major significance encountered in the drill intercepts since the start of Macmin's drilling programme. Silver equivalent values will change over time as any one or more metal prices change and are presented to give an indicative guide only. No metallurgical recovery studies have yet been undertaken on this mineralisation.

ASSAYING DETAILS As part of the Company's quality control programme, a duplicate sample is collected about every 20 samples and submitted under a different sample number providing a check on repeatability. Assaying is carried out by ALS Chemex in Brisbane using the ICP technique for silver, copper, lead, zinc, arsenic, antimony, bismuth and molybdenum. Gold is assayed by the ICPMS technique.

Table 2. Co-ordinates (Datum GDA94)

Hole No.	Easting MGA	Northing MGA	RL	DIP	AZI MAG	Depth (m)
GRDD005	688802.092	7632843.126	290.07	-60	106	215.8
GRDD006	688801.147	7632843.661	290.27	-80	106	400.4
GRDD007	688737.391	7632807.215	296.459	-60	106	248.6
GRDD008	688760.927	7632792.951	291.611	-80	106	400.2
GRDD009	688722.585	7632781.422	281.56	-60	106	200.7
GRRC033	688784.232	7632813.964	297.785	-65	90	120
GRRC034	688684.653	7632696.337	268.805	-50	336	120
GRRC035	688684.215	7632695.639	271.005	-70	336	153
GRRC036	688813.48	7632722.571	280.301	-50	286	148
GRRC037	688831.363	7632825.722	277.316	-50	286	100

Sampling Details Sampling of reverse circulation holes was undertaken over 1m and 2m intervals within the visual breccia pipe (ie mineralized zones) and over 4m intervals through the un-brecciated, unaltered zones (ie non mineralized zones). Diamond core has been sampled over 1m intervals (1/2 core) within the breccia zones, with the altered margins being sampled over 2m intervals (1/4 core) for 2-4 samples either side of the breccia zones. Most diamond core has only been sampled in the area of the brecciation and alteration. A few diamond holes have had more extensive sampling over the full length of the hole at 4m intervals out side of the brecciation and alteration zones.

9th July 2007
COMMISSIONING CONTINUES AT TWIN HILLS SILVER MINE, TEXAS PROJECT
Commissioning and commercial production of silver has proceeded more slowly than anticipated at the Twin Hills Silver Mine. Fine-tuning of the leach silver recovery circuits is expected to take several more months with silver production gradually building up over this period.

Delays in commissioning were caused primarily by the following:

• A failure in the new jaw crusher, caused by a manufacturing flaw which resulted in this crusher being out of action for 8 weeks. A hire crusher was utilised for part of that time. This problem has been fixed and a claim has been made against the manufacturer.
• The need to recruit and train personnel in the tight supply situation for mining and processing personnel has so far prevented a second crushing shift being implemented. On site training is a priority.
• Problems were encountered with the conveyor - hopper units which slowed the crush, agglomerate and stacking of the heaps (known as the CAS operation). We are currently looking at ways to improve the stacking function.

In addition, the build up of material for processing and a time lag for recovery of metal is a typical feature of heap leach operations. As a result of the above delays silver powder production did not recommence until mid June 2007.

Silver has been building up in the solution pond, which is sized for anticipated production levels, from the irrigation of the lower grade (approx. 59g/t silver) material used to make the initial heaps. This material was processed during optimisation of the screening circuit so that any reduction in recovery of silver due to oversize product would only impact on the lower grade ore. Ore >80g/t silver is now being placed on the heaps, which will result in progressively higher silver leaching rates as further heaps come on line.

The manufacturers, Electrometals, are engaged with Macmin staff in commissioning and fine-tuning the electrowinning plant to efficiently produce a fine silver powder from the leachate solution. Approximately 40kg of silver has been produced during trials on several banks of cells in the plant and work is continuing to determine the optimum plant operating parameters for silver powder production.

Mining to date is as follows:

A total of 385,000 tonnes has been mined as follows:

• Ore 116,000 tonnes
• Low grade stockpile 54,000 tonnes
• Waste 215,000 tonnes

The mining fleet is performing well and is about to be expanded to ensure continuity of ore for processing as production ramps-up. The mining fleet is supplied by a contractor and operated by the Company.

Ore stockpile:

A stockpile of 43,000 tonnes is being maintained ready for crushing.

Processing:

• 73,000 tonnes of agglomerated and stacked ore is under irrigation with leach solution.
• At present there is approximately 3,800kg (122,000oz) of silver estimated as ultimately recoverable in the current heap and the leachate solution.

In late May the appointment of a new Process Manager with extensive heap leach experience provided further opportunities for system optimisation and assisted with the training of processing personnel.

The CAS operation is now operating at close to expected hourly throughput levels, albeit on a single shift per day basis. The Company is evaluating the relative merits of recruiting and training additional personnel to run a second shift as originally intended or increasing the capacity of the CAS circuit to achieve desired throughput using existing personnel.

Yours faithfully
Garry Edwards
Company Secretary 10th July 2007
TALLY HO YIELDS FURTHER DRILL RESULTS TO 817g/t SILVER AND 12.2% ZINC
Macmin Silver Ltd has recently received the results of an additional 10 holes from the drilling campaign completed at the Tally Ho prospect in May 2007.

Highlights of the recent drill results are as follows:

GRRC38	2m (50-52m)	@	130g/t Silver, 4.1g/t Gold, 0.28% Copper, 0.12% Lead & 0.82% Zinc
	1m (75-76m)	@	132g/t Silver, 0.3g/t Gold, 0.37% Copper & 3.51% Zinc
GRRC40	2m (56-58m)	@	633g/t Silver, 0.3g/t Gold, 0.67% Copper & 9.74% Zinc
	4m (86-90m)	@	129g/t Silver, 0.37% Copper & 1.45% Zinc
	1m (99-100m)	@	74g/t Silver, 0.3g/t Gold, 0.47% Copper, 0.28% Lead & 12.2% Zinc
GRRC41	4m (31-35m)	@	61g/t Silver, 0.2g/t Gold, 0.39% Copper, 0.15% Lead & 4.91% Zinc
GRRC42	1m (50-51m)	@	817g/t Silver, 0.1g/t Gold, 1.42% Copper & 5.77% Zinc
	1m (90-91m)	@	131g/t Silver, 0.1g/t Gold & 0.12% Copper
GRRC49	2m (131-133m)	@	87g/t Silver, 0.25% Copper & 1.65% Zinc
GRRC51	1m (128-129m)	@	139g/t Silver, 0.38% Copper & 0.75% Zinc
GRDD15	1m (123-124m)	@	219g/t Silver

Of particular note above are the high zinc results, which, if a mining of section is developed, would contribute significantly to the total value of the mineralisation.

Results from the second batch of samples received and reviewed for the drilling programme completed in May 2007 at the Tally Ho prospect near Mackay in Central Queensland, support those previously discussed in the ASX release dated 7th June. The best intercepts are shown above and in Table 1 and hole locations in Table 2.

Results for the remaining 12 drill holes will be progressively received over the coming months, with processing of the diamond drill core being ongoing, and samples being despatched for assay on a regular basis over the coming weeks.

On receipt of the final results from the current drilling programme, these will be incorporated with all previous drilling data and a sectional review will be undertaken, with the aim of getting a better understanding of the ore genesis, geometry and size of the Tally Ho breccia pipe / mineralising system and an indication of the average grade of the mineralizing system.

The present objective is to produce a JORC compliant resource by early 2008.

Sampling of reverse circulation holes was undertaken over 1m and 2m intervals within the visual breccia pipe (i.e. mineralized zones) and over 4m intervals through the un-brecciated, unaltered zones (i.e. non mineralized zones).

Diamond core has been sampled over 1m intervals (1/2 core) within the breccia zones, with the altered margins being sampled over 2m intervals (1/4 core) for 2-4 samples either side of the breccia zones. Most diamond core has only been sampled in the area of the brecciation and alteration.

A few diamond holes have had more extensive sampling over the full length of the hole at 4m intervals out side of the brecciation and alteration zones.

As part of the Company's quality control programme, a duplicate sample is collected about every 20 samples and submitted under a different sample number providing a check on repeatability.

Assaying is carried out by ALS Chemex in Brisbane using the ICP technique for silver, copper, lead, zinc, arsenic, antimony, bismuth and molybdenum. Gold is assayed by the ICPMS technique.

Table 1

Hole No	Interval	Length	Silver	Gold	Copper	Lead	Zinc	Silver Equiv
	From To (m)	(m)	g/t	g/t	(%)	(%)	(%)	(g/t)
GRRC38	50 - 52	2	130	4.07	0.28	0.12	0.82	485
	59 - 60	1	22	0.03	0.18	0.01	5.58	573
	70 - 71	1	29	0.07	0.12	0.03	1.33	180
	75 - 76	1	132	0.31	0.37	0.10	3.51	550
GRRC40	56 - 58	2	633	0.27	0.67	0.05	9.74	1681
	80 - 100	20	48	0.07	0.20	0.07	1.51	235
	incl 80 - 81	1	61	0.09	0.14	0.04	5.28	578
	& 86 - 90	4	129	0.08	0.37	0.01	1.45	344
	& 92 - 93	1	72	0.16	0.43	0.37	0.06	189
	& 99 - 100	1	74	0.31	0.47	0.28	12.2	1314
GRRC41	31 - 35	4	61	0.18	0.39	0.15	4.91	609
	40 - 46	6	31	0.08	0.15	0.03	1.02	161
	58 - 60	2	41	0.04	0.16	0.01	0.57	129
	63 - 65	2	34	0.06	0.12	0.03	0.90	148
GRRC42	50 - 51	1	817	0.12	1.42	0.07	5.77	1654
	66 - 67	1	38	0.21	0.03	<0.01	0.12	66
	74 - 75	1	28	0.24	0.11	<0.01	0.19	82
	77 - 78	1	35	0.06	0.40	0.09	0.01	127
	90 - 91	1	131	0.11	0.12	0.09	0.06	170
	110 - 111	1	64	0.04	0.05	0.19	0.13	93

Table 1 Continued

Hole No	Interval	Length	Silver	Gold	Copper	Lead	Zinc	Silver Equiv
	From To (m)	(m)	g/t	g/t	(%)	(%)	(%)	(g/t)
GRRC43			no significant results
GRRC49	126 - 138	12	39	0.03	0.12	0.01	0.65	126
	incl 131 - 133	2	87	0.03	0.25	0.05	1.65	293
GRRC050	98 - 100	2	75	0.03	0.14	0.03	0.23	128
GRRC51	128 - 129	1	139	0.03	0.38	<0.01	0.75	290
	135 - 144	9	34	0.02	0.11	0.01	0.62	115
GRDD15	114 - 116	2	24	0.04	0.33	0.05	0.02	100
	118 - 119	1	29	0.07	0.32	0.05	<0.01	102
	123 - 124	1	219	0.01	0.01	<0.01	0.02