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.

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

 

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

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
GRDD018		no significant mineralisation
GRDD019	144	146	2	177	1.65	0.01	0.03	0.01	268

Note:                 

1. True widths of the intervals quoted are not listed, as the orientation of the mineralisation is uncertain.
2. Macmin Silver Ltd is primarily 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, however no metallurgical testing to determine recoveries has been undertaken to date.

*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)

TABLE 2 – Hole locations for Table 1

Hole No	Easting_MGA	Northing_MGA	RL	DIP	AZI_MAG	AZI_GRID_MGA	DEPTH
GRRC044	688811	7632846	289.4	-50	60	69	148
GRRC045	688810	7632847	289.3	-50	30	39	148
GRRC046	688809	7632772	291.2	-50	286	295	148
GRRC047	688836	7632825	277.2	-50	340	349	148
GRRC048	688810	7632772	291.3	-70	286	295	149
GRDD009	688723	7632781	281.6	-60	106	115	200.77
GRDD010	688815	7632722	280.2	-70	286	295	211.5
GRDD014	688842	7632731	279.6	-70	286	295	351.66
GRDD016	688909	7632817	252.3	-50	286	295	199
GRDD017	688895	7632723	265.0	-50	286	295	281.44
GRDD018	688921	7632795	248.6	-50	286	295	221.7
GRDD019	688938	7632740	255.7	-50	286	295	300.5

 

Yours faithfully

 

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.

 

 

 

15th October 2007
"MACMIN PLAN FOR 2008 TWIN HILLS SILVER MINE UPDATE"

Macmin’s objective is to consolidate its unique position as the premier silver focused company in Australia. This objective is based on our belief that rising silver prices herald a recognition that silver in the 21st Century will be a fundamental metal in technological advances and an important investment asset.

To progress that objective the Board’s plan for 2008 is to:

• Continue to acquire new silver and or silver/zinc/lead projects throughout Queensland to provide the future advancement and expansion for the Company.  The success at the Tally Ho Project (see ASX release dated 27th September 2007) is an example of this future potential.  Former Managing Director, Denis O’Neill, continues as a Director of the Company and has assumed responsibility for planning and directing this part of the strategy.

• Continue to drill other prospects within the Texas Silver Project such as Mt Gunyan and Mt Gunyan South-East.  At Mt Gunyan, Macmin has identified, at least in the upper, near-surface parts, a lower grade silver system than Twin Hills.  However, as noted in the last ASX release, dated 27 September 2007 some very high grades to 592g/t silver and 192g/t gold have been noted, hinting at steeply dipping structures hosting ‘bonanza type’ silver-gold mineralisation.  Drilling is expected to continue throughout 2008 and potentially will lead to a decision regarding a mining lease application by the end of 2008. The current Resource figures quoted in the Annual Report are expected to be revised in mid 2008.

• Continue to improve the mining and processing of silver ore at the Twin Hills mine to achieve, initially a monthly production rate of 180,000ozs of silver. This target is based on leaching 60,000 tonnes per month of medium and high grade ore, crushed to <4mm. Low grade ore treatment is not included in this target, as detailed later in this announcement.  

Bob McNeil, Chairman of Macmin Silver noted “Commissioning at the Twin Hills Silver Mine over the past six months has not led to full scale production as quickly as anticipated.  This is not unusual with new mines, but we believe we have identified all the problems and are moving to overcome them.  We expect silver production to gradually increase over the coming months to a monthly rate of 180,000ozs.  This target may not be achieved until well into 2008.  We will continue to investigate the possibility of further increasing production rates.

The silver powder produced at the Twin Hills Mine is a unique product which is eventually expected to sell at a premium to the spot silver price.  An initial sale of approximately 250kg (8,000oz) of silver powder is expected to be made this week and will be reported once concluded.

Our exploration program to identify additional silver or silver/lead/zinc resources in Queensland is expected to provide a considerable further upside to the Company in later 2008, particularly as we focus on identifying additional resources at the Texas tenements and in projects such as Tally Ho.  Production of silver is very important to the Company but identification of new projects for future expansion is equally important.”

TWIN HILLS MINE UPDATE

The Twin Hills mine is an open cut mine which, when producing at the rate of 180,000ozs of silver per month, will mine approximately 80,000 tonnes of ore (both higher grade heap leach ore and lower grade dump leach ore) per month. Mining, processing, commissioning of the plant and the move to higher production rates has been much slower than expected.

The process from identification of silver resources to production of silver powder can be summarised as follows:

Resources

Resources are identified by early drilling and later confirmed by detailed “grade control” drilling.  Grade control drilling has been completed to an approximate depth of 30m over much of the proposed pit surface and has confirmed the earlier estimates of grade and tonnages – the silver is present in the rock.

Previously announced Resources for Twin Hills only are shown below (see also 2007 Annual Report):

Measured Resource
Resource Type	Cut off Grade	Tonnes (m)	Silver g/t	Gold g/t
Heap Leach	60g/t silver	1.30	95	0.2
Dump Leach	20g/t silver	1.60	35	0.07

 

Indicated Resource
Resource Type	Cut off Grade	Tonnes (m)	Silver g/t	Gold g/t
Heap Leach	60g/t silver	1.49	95	0.2
Dump Leach	20g/t silver	7.12	32	0.07

 

Inferred Resource
Resource Type	Cut off Grade	Tonnes (m)	Silver g/t	Gold g/t
Heap Leach	60g/t silver	1.26	98	0.2
Dump Leach	20g/t silver	5.69	32	0.07

 

Total Resources are as follows:-

Measured Resource -                2.9Mt at 72g/t silver and 0.1g/t gold
                                                       for contained silver and gold of 6.7Mozs silver and 9,300 ozs gold

Indicated Resource -                 8.6Mt at 43g/t silver and 0.1g/t gold
                                                       for contained silver and gold of 11.9Mozs silver and 28,000 ozs gold

Inferred Resource -                    6.95Mt at 44g/t  silver and 0.1g/t gold
                                                       for contained silver and gold of 9.8Mozs silver and 22,000 ozs gold

A limited number of deep drill holes indicate the current mineralisation at Twin Hills extends at depth and along strike beyond the present Resource.  This mineralisation has not yet been drilled out.

A complete Resource Statement for the Texas Project is stated in the 2007 Annual Report.

Mining
Mining is carried out by drill and blast followed by transport to the crushing facility.  At present two excavators, two bulldozers and four 50t trucks are on site for use in this operation.  High grade ore goes straight to the crushing circuit, low grade ore is presently stockpiled for later silver extraction, and waste is taken to the waste rock dump.

In view of current higher silver prices the pit design is being continually evaluated to allow lower grade ore to be mined and processed.

Mining is progressing satisfactorily and an increase in the mining rate to match increased crushing capacity is achievable. To date 199,000 tonnes of medium-high grade ore, 102,000 tonnes of low grade ore and 242,000 tonnes of waste have been mined.

Crushing, Agglomerating and Stacking
The higher grade ores are crushed to <4mm in size, agglomerated with cement and lime to achieve the required pH, and stacked onto heaps for leaching.

Reliability and availability constraints (particularly the lengthy repair of the jaw crusher failure) within the mobile section of the crushing circuit has reduced crusher throughput. A trained workforce has been difficult to recruit and the Company has followed a program of local recruitment and on-the-job training which has slowed production.  Such workforce training requirements and crusher availability have so far prevented the introduction of a second shift.

Additional employees from outside the local area are presently being recruited to allow implementation of a two shift, 7 day/week operation.  In addition quotations and contracts are being evaluated for a contract crushing arrangement but the installation of any contract crushing equipment is estimated to take 20 to 24 weeks from date of commitment.

Stacker design and operation initially delayed stacking of the crushed ore, however the characteristics of the ore have proved favourable for leaching and that has allowed for increased use of conventional stacking machinery.

Heap Leaching
After being placed on heaps up to 8m high the ore is saturated with a leaching solution which dissolves the silver.  The solution (pregnant solution) with the dissolved silver is collected by pipes at the base of the heap and stored in specially constructed and covered ponds.

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.

Leaching has not been continuous due to a revamp of the irrigation system and a major clean out of the leaching circuit to remove fine material accumulated during construction.

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).

Silver Powder Production
The silver is extracted from the pregnant solutions by an electrowinning process.  This electrowinning plant (EM-EW) contains 180 cells, is modular and can be relatively easily increased in capacity and produces a silver powder containing about 98% silver.  This silver powder is dried, stored in drums and sold “as is” or can be refined into silver ingots. Approximately 280kg (9,000oz) of silver has been produced to date.  Production of 4,000kg (128,600oz) of silver is forecast for the fourth quarter of 2007.

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.

It is apparent that the temperature of the leach solution has more effect on silver recovery by electrowinning than previously thought and the initial trials completed on-site in low winter temperatures were adversely affected.  Summer temperatures heating the solution will deliver more efficient recoveries and investigations will be undertaken into heating the solution for winter processing in future.

Continued extraction of silver powder from the cells has now provided data and operating parameters for the finalising of an effective powder filtering, drying and packaging system.

Marketing
The silver powder being produced is a unique product, is of good purity and its very fine texture is providing marketing opportunities which may attract a premium to the spot price for silver.  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.

Low Grade Ore Treatment
The plan for Twin Hills includes processing of lower grade ores without the cost of crushing to the fine size used for the higher grade ore. This component of the production plan relies on stacking the coarse lower grade material on top of fine material which has been fully leached. This eliminates the need for additional leach pad construction costs for the lower grade ore. At this stage the lower grade material is being stockpiled pending availability of re-usable leaching areas.

ENVIRONMENTAL PROTECTION AGENCY APPROVALS (“EPA”)

As per the conditions set out in the Environmental Authority, an independent Site Water Management and Monitoring Plan has been completed and sent to the EPA in draft form.  A consultant group specialising in site rehabilitation has been engaged to prepare the engineering documentation required for the capping of the waste rock dump, stockpiles and heap leach area. Progressive capping and re-vegetation of these areas is an ongoing EPA requirement. 

SILVER SPUR ZINC MINERALISATION

Zinc mineralisation is known to occur adjacent to Twin Hills at the historic Silver Spur silver/zinc mine.

Previously announced Resources at Silver Spur include:

• In ground Inferred Resource – 808,000t at 70g/t silver, 3.56% zinc, 1.25% lead, 0.17% copper.

• Slag dump Inferred Resource – 90,000t at 0.5g/t gold, 0.35% copper, 3.17% lead, 15.8% zinc and 158g/t silver.

We have not yet determined how best to proceed with the Silver Spur Resources, mainly due to other management priorities.  The Resource could, however, add to the Company’s cash flow in the future.

Yours faithfully,

 

Garry Edwards  
CHIEF EXECUTIVE OFFICER

 

APPENDIX B
NEW GUINEA GOLD CORPORATION - TSX RELEASES

 

26th October 2007
"NEW GUINEA GOLD TRANSFERS TWO COPPER PROJECTS TO COPPERMOLY LTD"

New Guinea Gold Corporation (the “Company”) is pleased to report that, in keeping with its stated objectives to focus on gold production and exploration, specifically Sinivit in East New Britain, and the Normanby and Sehulea properties on Normanby Island, that the Company has transferred two copper properties (Simuku and Mt Nakru) to a newly formed Australian Company known as Coppermoly Ltd,  (“Coppermoly”). Coppermoly is undertaking an Initial Public Offering in Australia and has lodged a prospectus with ASIC, the Australian regulatory authority, and is expected to list on the Australian Stock Exchange (see www.asx.com.au)  at the end of this year.

The IPO for Coppermoly Ltd is sponsored by Australian Brokers, Novus Capital and South Pacific Securities and London broker VSA Capital.  This prospectus has been issued for the purposes of offering up to 80,000,000 shares at AUD$0.25 each and to raise up to AUD $20 million before costs.

Company Chairman and CEO Robert McNeil who has joined the Coppermoly Board as non-executive Chairman commented: “this is a step in the Company’s ongoing strategy to develop its extensive inventory of mining properties in PNG without the necessity of shareholder dilution to the Company while, at the same time, maintaining the Company’s primary focus on its gold production and gold assets, and securing shareholder and Company exposure to potential upside value as a result of further exploration efforts on these properties”.

The Company has been issued 29,473,683 shares in Coppermoly and has a further indirect interest in 10,526,316 shares issued to Pacific Kanon Gold Corporation, giving it an effective, approximate, 27% interest in Coppermoly after the IPO.

As stated above, the Simuku and Mt Nakru copper/molybdenum properties have been divested to Coppermoly (www.coppermoly.com.au) to allow the Company to focus on development of its gold assets.  The divested properties have merit as copper/molybdenum prospects and are ultimately expected to contribute to the Company’s balance sheet through its shareholding in Coppermoly.

For further information contact Forbes West toll free at 888 655 5532, email forbes@sherbournegroup.ca or Judith O’Quinn at 604 662 3598, email ngg@telus.net

The technical data in this release was prepared by or under the supervision of Robert D. McNeil, CEO of New Guinea Gold Corporation.  Mr McNeil has an MSc in Geology, 47 years mining industry experience, is a Fellow of the Australian Institute of Mining and Metallurgy, and meets the requirements of NI 43-101 for a qualified person.

ON BEHALF OF THE BOARD

 

“R.D.McNeil”
CHAIRMAN & CEO

The TSX Venture Exchange has not reviewed and does not accept the responsibility of the adequacy of this release.  The statements made in this News Release may contain certain forward-looking statements.  Actual events or results may differ from the Company’s expectations.  Certain risk factors may also affect the actual results achieved by the Company.