Technical Report - Quarter Ended 30 September, 2007
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 entering 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.
  • Extensive trials of 60 of the 180 cells of the Electro-winning (EM-EW) plant has resulted in the production of approximately 280kg (9,000oz) of silver powder at Twin Hills.  The remaining 120 cells will be brought into use during the coming quarter resulting in a progressive build-up in silver production.
  • Continuing drilling success at Mt Gunyan and Tally Ho enhance potential viability of both Silver Projects.
  • Mr Garry Edwards was appointed CEO effective 1 October 2007.
  • New Guinea Gold divests copper projects.
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 Activities Summary
A Twin Hills Silver Mine update (ASX release 15 October 2007) recently provided information on the commissioning phase of the project.

Key points from the update are summarised as follows:

  • 60 of the 180 cells of the Electro-winning plant have been utilised in extensive trials with varying conductivity, voltage/current, flow-rates and temperature levels to improve extraction rates of silver powder in the electrowinning cells.  During the week ended 28th September the EM-EW plant ran 12 hours per day every day for the first time and produced the highest extraction rates per cell to date.  Extraction rates per cell are still 40% below design expectations but the plant was built with extra cell capacity and can be extended as required.  It may be necessary to install a small Merrill Crowe silver extraction plant to recover silver in lower grade leachate solutions which are not economical to treat through the EM-EW plant..
  • The ore characteristics have facilitated percolation of solution through the heaps and that part of the operation is working well but actual leaching recovery rates have yet to be determined.  It is estimated that 6,000kg (193,000oz) of silver will be leached from the heaps already in place.  Silver in solution inventory in the process ponds awaiting electrowinning amounts to 800kg (25,700oz).
  • The silver powder being produced is a unique product, is of good purity and its very fine texture; silver sizing analysis has confirmed the very fine nature of the powder with size range being 1 to 50 microns and 72% of the powder being less than 20 microns.  Two contractual arrangements for sale of small monthly quantities of silver in the powder form are being negotiated.  Any silver not sold as powder can be smelted and sold in conventional ingot form.

The mine production statistics for the quarter are as follows:

A total of 159,192 tonnes was mixed as follows:

  • Ore                                          83,160
  • Low grade stockpile            48,186
  • Waste                                     27,846
3.0 EXPLORATION
3.1 Mount Gunyan Project

Diamond drilling in the south-east of the Mt Gunyan project area has bolstered current mineralized zones and enhanced the depth potential in this area whilst a new mineralized structure has been located to the east of previously identified areas of mineralization.

Recent re-assaying of an interval in MGD I (152 -153m) has returned a 1 metre interval at 592g/t silver and 172g/t gold, indicating that there is potential to locate very strong silver – gold mineralization in the deeper sections of the central portion of the Mt Gunyan mineralizing system.  Ongoing drilling will now target these ‘higher potential’ structures at Mt Gunyan.

The attached ASX release of 25 September 2007 provides further detail on the Mt Gunyan drilling results.

3.2 Tally Ho Silver Project

Further encouraging assay results from drilling completed in May were obtained from Tally Ho.  The attached ASX release of 27 September 2007 provides details of the drilling results.

A programme of soil sampling was completed over an area of approximately 1.2km x 1.5km (entered on the Tally Ho prospect) with the aim of identifying further drill targets.  Assay results are expected in the next quarter.


4.0 CORPORATE
Mr Garry Edwards was appointed Chief Executive Officer (CEO) effective 1 October 2007.  From that date, Denis O’Neill, who stood down as Managing Director for personal and family reasons, remains a Director and will devote approximately 50% of his time to the Company. 

 

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 September 2007
New Guinea Gold Corporation (TSX)
www.newguineagold.ca
17,847,020
-
$11,753,709
Malachite Resources NL
www.malachite.com.au
1,500,000
-
$405,000
Frontier Resources Ltd
www.tasgold.com.au
5,425,000
3,780,343
$928,485


6.0 NEW GUINEA GOLD

New Guinea Gold Corporation (15% Macmin) continued with exploration, mine development and production during the quarter and press releases by NGG are available at www.newguineagold.ca

The most significant press releases from NGG since the last quarterly report 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
MACMIN SILVER LTD - ASX RELEASES

19th September 2007
"CONVERTIBLE NOTE"

Macmin is pleased to announce it has secured agreement for a Convertible Note Facility of US$9million from a US based investment group (“Subscriber”).  The arrangement is subject to final due diligence and the Closing Date will be in approximately 14 days.

These funds will be employed towards upgrading the crushing circuit at Twin Hills and to maintain a strong exploration impetus on existing projects and also to evaluate new silver project opportunities.

Commissioning of the Twin Hills silver mine over recent months has highlighted areas within the crushing circuit where improvements can now be made to ensure that long term expansion of production volumes could be achieved.  Macmin is currently evaluating a number of alternative additions and improvements to the crushing circuit and having funds ready to apply to the chosen alternative will speed up this strategy.  Commissioning of the Electro-winning Plant (EM-EW) has produced sufficient silver powder to provide commercial samples for end-users to evaluate and marketing initiatives are underway.  Optimisation tests on parameters such as flow rates, solution temperature and conductivity are advancing to increase the efficiency of silver powder production from the initial 60 EM-EW cells commissioned to date.

The exploration success at the Tally Ho silver project in Central Queensland has focused the Company exploration drive to this area which had no history of silver exploration.  Our results have indicated that the area is highly prospective for silver and consequently we have applied for a number of exploration permits in the area and are evaluating a number of silver prospects held by other parties.  Funds from the Convertible Note will be deployed in a very active programme to locate silver resources in 2008 in Central Queensland, whilst simultaneously maintaining our exploration activity at Twin Hills, Mt Gunyan and other areas within the Texas Silver Project.

The conditions of the Convertible Note are:-

  1. The Subscriber will make available US$9million as a Convertible Loan to Macmin in two tranches of US$4.5million three months apart.
  2. There will be six repayments of principal, commencing 6 months after the Closing Date. The Company may make repayments in cash, or in shares at 3% discount to the Volume Weighted Average Price (“VWAP”) in the pre-determined period prior to issue of the shares.
  3. The term of the Loan is 3 years with interest rate at 10% per annum payable quarterly in cash.
  4. Commencing 6 months after Closing Date the Subscriber has a Conversion Right and may require conversion of all or part of the outstanding loan to shares. The conversion right would be at a share price of 150% of the VWAP over the 20 trading days prior to the Closing Date. (For example if the Closing Date was today the Conversion Right would be set at a price of approximately 36 cents per share). If the Subscriber gives notice of a Conversion, the Company still has the right to elect to pay the Subscriber cash instead of shares, paying out the share price gain above the Conversion Price to the Subscriber.
  5. Macmin will have the right to prepay a portion or all of the Convertible Loan in cash and at par at any time.
  6. Macmin shall issue the Subscriber options to purchase 5,000,000 shares at $0.48 (the historical high of the shares).

Yours faithfully

 

D.M. O’Neill
MANAGING DIRECTOR

 


20th September 2007
"MACMIN SILVER APPOINTS NEW CEO"

Mr Denis O’Neill has decided to step down from the role of Managing Director as he is unable to continue in a full-time role for personal and family reasons.  He will remain an Executive Director and work in a part-time capacity for the Company.

Mr O’Neill’s long association with the Texas Silver Project from exploration to development has helped underpin the growth of Macmin.  I am pleased to say that he will remain a valuable member of the Macmin team.

Succession planning has been in progress since 2006 and Mr Garry Edwards, MBA, FAICD, who has been Company Secretary and Chief Financial Officer since 1995, will assume the role of Chief Executive Officer (CEO) effective 1 October 2007. Mr Edwards brings strong financial and management expertise to the CEO’s role which the Board considers appropriate as Macmin moves from an exploration company to a mining company.

As a part of the succession planning and, although Mr Edwards will retain his current statutory roles for now,  Mr Paul Schultz  and Mrs Lisa Hartin have been promoted to Financial Controller and Chief Accountant respectively and Ms Kim Carter will assume additional responsibility in her Assistant Company Secretary role. Mr Edwards’ financial background and long association with the Company ensures a smooth transition in the leadership of the Company at an exciting time when commercial production from the Company’s first silver mine at Twin Hills is getting underway.

Mr Edgar Newman, who has been with the Company since 1997, will, in the role of Executive Director – Technical, continue to be responsible for most technical aspects for the Company and will work closely with Mr Edwards to maximise shareholder value from existing and new projects. Mr Newman will be assisted in this role by Mr Mark Morrison who was recently appointed as Process Manager/Manager of Metallurgy for the Company.

The Texas site operations continue to be directed by Mr Bill Guthrie, General Manager, and Mr John Magnusson, Senior Site Executive, assisted by recently appointed Mr Vas Vanek as Process Manager.

Yours faithfully,

 

R.D. McNeil
CHAIRMAN

 


25th September 2007
"DRILLING AT MT GUNYAN INTERSECTS VERY PROMISING SILVER VALUES TO 524g/t"

Summary

Macmin Silver Ltd has recently received assay results for the first 12 drill holes of our ongoing drilling programme at Mt Gunyan, which commenced in the first half of the year.

Diamond drilling in the south east of the Mt Gunyan prospect has bolstered current mineralised zones and enhanced the depth potential in this area, while a new mineralised structure has been located to the east of previously identified areas of mineralisation.  Highlights of the drill holes are as follows:

                     MGD9                10m (42-52m) at 110g/t silver, 0.14% lead and 0.11% zinc
                                                Including 1m at 524g/t silver and 0.47% lead

                                                2m (126-128) at 80g/t silver and 0.08% zinc

                     MGD11              2m (12-14) at 72g/t silver and 0.13% zinc

Extension drilling along strike to the north of the known mineralisation at Mt Gunyan has intersected some encouraging results, and leaves the system open to the north-east.  Highlights of the drill holes are as follows:

                     MGP297                4m (12-16m) at 85g/t silver and 0.21% lead

                                                     4m (22-26m) at 70g/t silver and 0.14% lead

                     MGP298                 2m (32-34m) at 46g/t silver and 0.10% lead

Re-assaying of MGD1 (drilled in 2002) on a ½ core basis highlights the potential to find areas rich in silver-gold mineralisation below the central section of known mineralisation, with MGD1 returning the following result:

                     MGD1                1m (152-153) at 592g/t silver and 172g/t gold

Drilling

Initial assay results for the drilling programme commenced at the Mt Gunyan prospect in April 2007 (ASX Release: Exploration Update 15 March 2007) have recently been received and reviewed.  The Mt Gunyan prospect is situated within 3km of the Twin Hills Silver Mine, near Texas in South-East Queensland.

Results received from diamond drilling completed to date in the south-east portion of the mineralised system (MGD9 and MGD11) enhances earlier drill results with a best intercept of 10m at 110g/t silver, 0.14% lead and 0.11% zinc from 42m in hole MGD9.  Included in this interval is 1m at 524g/t silver, 0.47% lead and 0.14% zinc also from 42m.

A new mineralised structure to the east of previously identified mineralisation has been located with MGD9 returning an intercept of 2m at 80g/t silver and MGD11 returning an intercept of 4m at 55g/t silver.

Tables 1 and 2 show hole location data and best intercepts for all results received to date. 

Figure 1 shows the current drilling results on section 5600N in relation to earlier results.  The recent results have strengthened the previously identified lodes while increasing the prospectively of depth extensions within this area of the mineralising system.

Mt Gunyan Section 5600N

FIGURE 1: Mt Gunyan Section 5600N

Assay results from the first 10 percussion holes, (MGP293, 295, 297, 298, 300-305 with an average hole depth of 48m and a maximum depth of 60m), which where planned to extend the mineralising system along strike to the north have returned some encouraging results, with the best intercepts of 4m at 85g/t silver and 0.21% lead from 12m and 4m at 70g/t silver and 0.14% lead from 22m in hole MGP297.  While hole MGP298 returned a best intercept of 2m at 46g/t silver and 0.10% lead from 32m.

Holes MGP297 and MGP298 are on the north north-east edge of the known mineralisation and leave the system open to the north-east.  Best intercepts for all holes are located in Table 1, with Table 2 showing the associated hole location data.

TABLE 1 – Best Intercepts


Hole No

Interval

Length

Silver

Lead

Zinc

 

From To (m)

(m)

g/t

(%)

(%)

 

 

 

 

 

 

MGP293

8 - 28

20

16

0.19

0.08

 

 

 

 

 

 

MGP295

 

no significant mineralisation

 

 

 

 

 

 

 

 

 

MGP297

0 - 40

40

32

0.09

0.05

 

incl. 12 - 16

4

85

0.21

0.03

 

and 22 - 26

4

70

0.14

0.05

 

 

 

 

 

 

 

 

 

 

 

 

MGP298

28 - 42

14

21

0.05

0.09

 

incl. 32 - 34

2

46

0.10

0.09

 

 

 

 

 

 

MGP300

 

no significant mineralisation

 

 

 

MGP301

 

no significant mineralisation

 

 

 

MGP302

 

no significant mineralisation

 

 

 

 

 

 

 

 

 

MGP303

2 - 8

6

28

<0.01

0.06

 

 

 

 

 

 

MGP304

 

no significant mineralisation

 

 

 

MGP305

 

no significant mineralisation

 

 

 

 

 

 

 

 

 

MGD009

6 - 22.13

16.13

32

0.07

0.06

 

 

 

 

 

 

 

42 - 60

18

74

0.08

0.14

 

incl. 42 - 52

10

110

0.14

0.11

 

incl. 42 - 43

1

524

0.47

0.14

 

 

 

 

 

 

 

96.82 - 102.45

5.63

43

0.08

0.11

 

 

 

 

 

 

 

126 - 128

2

80

<0.01

0.08

 

 

 

 

 

 

 

 

 

 

 

 

MGD011

2 - 20

18

38

0.03

0.10

 

incl. 12 - 14

2

72

0.04

0.13

 

 

 

 

 

 

 

62.9 - 68.35

5.45

39

0.05

0.06

 

 

 

 

 

 

 

72-76

4

55

0.12

0.11

TABLE 2 – Hole locations for Table 1 data


Hole No

Northing

Easting

Easting

Northing

RL

Depth

DIP

AZI

AZI

 

Local Grid

Local Grid

MGA

MGA

 

(m)

 

MAG

Local Grid

MGP293

6009

5156

333008

6809817

518.1

57

-90

0

0

MGP295

6057

5278

333126

6809876

514

60

-90

0

0

MGP297

6092

5304

333148

6809913

514.2

60

-90

0

0

MGP298

6100

5333

333177

6809923

516.8

60

-90

0

0

MGP300

6146

5133

332973

6809952

505.7

36

-90

0

0

MGP301

6170

5149

332987

6809977

498.8

40

-90

0

0

MGP302

6200

5167

333003

6810008

500.7

37

-90

0

0

MGP303

6208

5242

333077

6810023

510.3

41

-90

0

0

MGP304

6214

5306

333140

6810034

506.8

36

-90

0

0

MGP305

6200

5351

333186

6810024

511.7

39

-90

0

0

MGD009

5603

5200

333087

6809416

585.6

150

-60

78

93

MGD011

5612

5229

333116

6809428

583

91.5

-60

75

90

Ongoing drilling is currently targeting depth extensions within the central portion (around 5700N) of the known mineralisation, utilising a combination of percussion and diamond drilling techniques.  This central area has previously returned some strong silver-gold results (ASX release 17th January 2003), with a best intercept from MGD1 of 1m at 300g/t silver and 43.2g/t gold from 152m.  A number of the better intercepts are shown in Table 3, with the associated hole location data in Table 4.

TABLE 3 – Some better intercepts from historical drilling


Hole No

Interval

Length

Silver

Gold

 

From To (m)

(m)

g/t

g/t

 

 

 

 

 

MGP1

130 - 160

30

20

2.8

 

incl. 130 - 132

2

55

22.6

 

and 156 - 158

2

90

12.3

 

 

 

 

 

MGD1

149 - 154

5

65

8.8

 

incl. 152-153

1

300

43.2

 

 

 

 

 

MGRC13

124 - 134

10

69

<0.01

 

incl. 126 - 128

2

172

<0.01

 

TABLE 4 – Hole locations for Table 3 data


Hole No

Northing

Easting

Northing

Easting

RL

Depth

DIP

AZI

AZI

 

Local Grid

Local Grid

MGA

MGA

 

(m)

 

MAG

Local Grid

MGD1

5713.5

5212.2

6809528

333089

610

178.2

-60

255

270

MGP1

5710

5211.7

6809524

333089

610

200

-60

255

270

MGRC13

5710

5158

6809519

333036

598

162

-90

0

0


Recent re-assaying (as discussed further below) of the 152-153m zone from MGD1 has returned 1m at 592g/t silver and 172g/t gold, indicating that there is potential to locate very strong silver-gold mineralisation in the deeper sections of this central portion of the Mt Gunyan mineralising system.

Current drilling targeting this central mineralised zone has intercepted 38cm of semi massive sphalerite, galena, pyrite ± silver sulphosalts within a board zone of strong siliceous, carbonate and chlorite alteration.  Drill core is currently being processed and will be sent for assay as soon as possible.

This style of mineralisation has not previously been intercepted at Mt Gunyan and opens the potential for more high-grade massive sulphide mineralisation, while the relationship between the massive sulphide mineralisation and the very strong silver-gold mineralisation is yet to be established.

Re-assaying

As a large proportion of the current drilling programme is planned as diamond drilling a review of the ¼ core sampling used for the previously drilled diamond holes (3 holes in total) was undertaken by re-sampling and assaying a section of MGD1 using ½ core.  It was anticipated that by assaying a larger sample one would get a more representative result and accommodate any ‘nugget effect’ that might be present in areas where higher gold values are located.

Results of the original ¼ core samples and the ½ core samples recently sent for assay, around the 152-153m zone of MGD1 are shown in Table 5.  In the area of elevated gold and silver results the ½ core seems to account more fully for all the gold and silver present.

As a result all sampling of diamond core carried out during the current drilling programme will be undertaken on a ½ core basis.

TABLE 5 – Re-assay results for MGD1


Hole MGD1

 

1/4 Core Samples

 

1/2 Core Samples

From

To

 

Silver (g/t)

Gold (g/t)

 

Silver (g/t)

Gold (g/t)

150

151

 

9.4

0.25

 

8

0.13

151

152

 

4.4

0.12

 

3.1

0.03

152

153

 

300

43.2

 

592

172

153

154

 

8

0.46

 

10

0.25

154

155

 

4.2

0.03

 

5.4

0.08

Sampling and Assaying Details

Sampling of percussion holes was undertaken over the full length of each hole on a 2 metre interval basis.  Sampling of Diamond Core was undertaken over mineralised and altered zones, sample intervals were determined from geological intervals.  In broad zones of alteration 2 metre intervals were selected.

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 and antimony.  Gold is assayed by the ICPMS technique.

Assaying Details of the Re-Sampling

Assaying of the ½ core material from MGD1 was carried out by ALS Chemex in Brisbane using the ICP technique for silver, copper, lead, zinc, arsenic and antimony.  Gold is assayed by the ICPMS technique, with values greater than 100g/t being fire assayed.

 

D.M. O’Neill
MANAGING DIRECTOR

 


27th September 2007
"MORE HIGH SILVER (711g/t) AND GOLD (10.15g/t) VALUES FROM DRILLING COMPLETED AT TALLY HO"

Summary

Macmin Silver Ltd has recently received assay results for the final 12 drill holes from the drilling programme completed at our Tally Ho prospect in May 2007.  Highlights of the drill holes are as follows:

            GRRC44          15m (21-36m)                at 230g/t Silver, 0.06g/t Gold and 0.05% Zinc 
                                     Incl. 2m (22-24m)          at 676g/t Silver, 0.17g/t Gold and 0.03% Zinc 

                                   10m (49-59m)                 at 272g/t Silver, 0.49g/t Gold and 3.90% Zinc 
                                    Incl. 2m (57-59m)          at 711g/t Silver, 2.11g/t Gold and 7.64% Zinc 

 

            GRDD9             1m (126-127m)              at 384g/t Silver, 10.15g/t Gold and 0.35% Zinc 

 

            GRDD10           1m (135-136m)              at 512g/t Silver, 1.05g/t Gold and 0.34% Zinc 

 

            GRDD14           1m (224-225m)              at 283g/t Silver and 3.18g/t Gold 

 

            GRDD19           2m (144-146m)              at 177g/t Silver and 1.65g/t Gold 

 

Drilling

Final assay results for the drilling programme completed in May 2007 at the Tally Ho prospect have recently been received.  The best intercepts from the final 12 drill holes are presented in Table 1, with hole location data shown in Table 2.  The Tally Ho prospect is part of the Central Queensland Project and is situated approximately 45km southwest of Mackay in Central Queensland.

Holes GRRC44, 45 and 47 are from the northern section of the mineralised breccia with a best intercept of  2m at 711g/t Silver, 2.11g/t Gold and 7.67% Zinc in GRRC44 from 57m located within a mineralised zone which extended from surface to 81m downhole assaying 109g/t Silver, 0.12g/t Gold, 1.03% Zinc, 0.16% Lead and 0.19% Copper.

Holes GRDD9, 10, 14 and 19 have all intersected zones of strong silver/gold mineralisation, with a best intercept of 1m at 384g/t Silver and 10.15g/t Gold in GRDD9 from 126m.  All of these intercepts are deeper (downhole) than the extensive silver/zinc (+/-gold, lead and copper) mineralisation.  Earlier drilling results (see previous ASX releases dated 7th June 2007 and 10th July 2007) also support the existence of a deeper (downhole) silver/gold rich zone of mineralisation.

The exact nature and relationship of the ‘deeper’ silver/gold mineralisation and the more extensive silver/ zinc (+/-gold, lead and copper) mineralisation is uncertain at present, but will be reviewed as part of a comprehensive evaluation of all drilling data completed on the Tally Ho prospect.  The ‘deeper’ silver/gold   mineralisation may represent a separate mineralising event, which has over printed or been over printed by the silver/zinc (+/-gold, lead and copper) mineralisation.  A better understanding of this relationship will assist with targeting future drilling both on the Tally Ho prospect and exploration on the surrounding tenements.

Production of drill sections spaced 20m apart (on a recently established local grid) over the strike length of the prospect is underway, which will allow a full sectional review of all drilling data with the aim of gaining a greater understanding of the mineralising system (ie breccia pipe) and producing a JORC compliant resource.  Two drill sections [5040N and 4980N] show the silver equivalent* mineralisation and its relationship to the breccia granite from the drilling carried out to date.

The breccia mineralising system (ie breccia pipe), which trends north north-east has been drill tested over a strike length of 180-200m.  There is potential to locate further mineralisation of this nature either along strike (both to the north north-east and the south south-west) and/or as a parallel system.  It is planned to undertake a programme of reconnaissance drilling in the coming months, utilising one of the Company’s privately owned drilling rigs, to test for further mineralisation along strike.

A programme of soil sampling and prospecting is currently in progress, over an area of approximately 1.2 x 1.5km (centred on the Tally Ho prospect), with the aim of identifying further drill targets.

Drill Hole Numbers
Hole numbers GRRC39 and GRDD11, 12 and 13 have not been used.

Sampling and Assaying Details
Sampling of reverse circulation holes was undertaken over 1m and 2m intervals within the visual breccia zones (ie mineralised zones) and over 4m intervals through the un-brecciated, unaltered zones (ie non-mineralised 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.  Samples are subjected to an Aqua Regia digest followed by analysis for Silver (Ag), Copper (Cu), Lead (Pb), Zinc (Zn), Arsenic (As), Antimony (Sb), Bismuth (Bi) and Molybdenum (Mo) by the ICP-AES technique and Gold (Au) by the ICP‑MS technique.

TABLE 1 – Best Intercepts

 

 

 

 

 

+Assays

 

 

 

*In ground value

Hole No

Interval (m)

Length

Silver (Ag)

Gold (Au)

Zinc (Zn)

Lead (Pb)

Copper (Cu)

Silver Equiv.

 

From

To

(m)

(g/t)

(g/t)

(%)

(%)

(%)

(g/t)

 

 

 

 

 

 

 

 

 

 

GRRC044

0

81

81

109

0.12

1.03

0.16

0.19

255

 

Including

 

 

 

 

 

 

 

 

2

5

3

191

0.11

0.03

0.35

0.06

223

 

21

36

15

230

0.06

0.05

0.12

0.21

287

 

incl. 22

24

2

676

0.17

0.03

0.23

0.04

702

 

42

43

1

29

0.09

3.54

0.05

0.05

369

 

49

59

10

272

0.49

3.90

0.48

0.49

772

 

incl. 57

59

2

711

2.11

7.64

0.19

1.20

1781

 

64

70

6

80

0.10

3.91

0.16

0.32

515

 

77

81

4

113

0.49

2.66

0.15

0.28

445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GRRC045

0

53

53

63

0.06

0.54

<0.01

0.09

138

 

Including

 

 

 

 

 

 

 

 

3

7

4

116

0.10

0.01

0.26

0.04

138

 

38

45

7

129

0.04

1.71

0.03

0.18

329

 

47

53

6

193

0.37

2.61

0.13

0.28

514

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GRRC046

67

75

8

273

0.19

3.30

0.04

0.31

651

                   
                   

GRRC047

33

40

7

144

0.15

0.84

0.07

0.14

261

 

incl. 35

38

3

294

0.29

1.26

0.03

0.20

467

 

56

64

8

19

0.03

0.98

0.05

0.08

129

 

67

68

1

51

0.53

1.99

0.07

0.16

296

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GRRC048

88

95

7

27

0.05

0.48

0.03

0.11

98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GRDD009

126

127

1

384

10.15

0.35

0.03

0.27

1015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GRDD010

135

136

1

512

1.05

0.34

0.35

0.66

749

 

143

144

1

349

0.46

<0.01

<0.01

0.02

378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GRDD014

224

225

1

283

3.18

<0.01

<0.01

0.03

459

 

235

236

1

107

0.56

<0.01

<0.01

0.01

140

 

 

 

 

 

 

 

 

 

 

GRDD016

no significant mineralisation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GRDD017

140

141

1

89

0.07

0.56

0.18

0.12

191

 

172

178

6

43

0.06

0.03

0.04

0.12

76

 

incl. 177

178

1

107

0.17

0.03

0.08

0.29

183

 

193

194

1

119

0.91

0.03

0.02

0.17

208