Nov 29, 2016

Malachite lays out Lorena production plans

Malachite lays out Lorena production plans

Malachite Resources aims to have its Lorena gold project, 15km east of Cloncurry, in production in September next year.

The timeline was outlined in a presentation at the company’s annual general meeting today.

The project is expected to produce 30,000 to 35,000 oz of gold over 18 months from an open-cut operation.

However the AGM heard there was potential to increase the mine life via an underground operation, subject to delineating resources beneath the open-cut.

A concentrate plant is about 60 per cent complete on site, however Malachite was unable to reach an agreement on the plant with former joint venture partner BCD Resources, which went into administration in 2015.

Malachite has a deal with Ore Processing Services (OPS) to fund and construct a modular plant for gold dore to be produced on site and OPS has reached an agreement with MKS (the secured creditor to BCD) to purchase the gold concentration plant already at Lorena.

The timeline unveiled today indicated that site preparatory works, construction of modules off site and completion of the concentrator on site would be carried out in April-July 2017.

Plant commissioning is due in August and production in September 2017.

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