The Kolosori Nickel Project is an advanced stage direct shipping ore nickel laterite project with excellent potential for development located on Isabel Island in the Solomon Islands. The project has a number of positive aspects including its close proximity to the coast, no processing requirements, low capital route to direct shipping ore production and local landowner support.

In October 2020 Malachite executed a Share Purchase Agreement to formalise the acquisition of an 80% interest in Kolosori Nickel (SI) Limited (“KNL”), a company incorporated in the Solomon Islands, with the remaining 20% of KNL held by traditional landowners. KNL holds PL 05/19, which holds the main part of the Kolosori Nickel Project located to the east of the Jejevo tenement on Isabel Island.

Mining One Pty Ltd (Mining One) has been engaged to undertake geological work on the Company’s nickel projects in the Solomon Islands. Mining One has completed an initial JORC (2012) mineral resource estimate for Prospecting Licence PL 05/19 (Kolosori tenement) on Isabel Island, Solomon Islands. The results are provided in Table 1. The Mineral Resource estimate is classified in accordance with the 2012 JORC guidelines.

KOLOSORI JORC MINERAL RESOURCES > 1.0 % Ni

LITHOLOGY	RESOURCE CATEGORY	Kt (‘000)	Ni %	Co %
TRANSITIONAL	MEASURED	107	1.77	0.08
	INDICATED	631	1.57	0.05
	INFERRED	1,504	1.49	0.06
	SUB TOTAL	2,242	1.53	0.06
SAPROLITE	MEASURED	575	1.69	0.03
	INDICATED	1,399	1.46	0.02
	INFERRED	3,061	1.37	0.02
	SUB TOTAL	5,035	1.43	0.02
TOTAL (M+I+I)		7,277	1.46	0.03

KOLOSORI JORC MINERAL RESOURCES > 1.2 % Ni

LITHOLOGY	RESOURCE CATEGORY	Kt (‘000)	Ni %	Co %
TRANSITIONAL	MEASURED	104	1.79	0.08
	INDICATED	559	1.63	0.05
	INFERRED	1,178	1.60	0.05
	SUB TOTAL	1,842	1.62	0.05
SAPROLITE	MEASURED	549	1.72	0.03
	INDICATED	1,136	1.54	0.02
	INFERRED	2,359	1.46	0.02
	SUB TOTAL	4,045	1.52	0.02
TOTAL (M+I+I)		5,887	1.55	0.03

The transitional and saprolite ores are saleable products for the direct ship ore (DSO) market, which will be the basis of the feasibility study.

Progressing to feasibility studies

This recently completed resource estimate will form the basis of a feasibility study at Kolosori which will commence immediately. An infill drilling program is currently being designed by Mining One to increase the confidence and test for extensions of the resource estimate.  The program will utilise a number of infill holes at a closer spacing to increase the measured and indicated resource estimates in these categories.