ASX Code: MAR
Issued Shares: 1,298,041,044
ABN: 86 075 613 268
Directors
Terry Cuthbertson James Dean Andrew McMillan
Top Shareholders Mr Lindsay Jones Olhoc Pty Ltd
Morrison Charity Trustee Ltd
Head Office
Malachite Resources Limited Suite 2, Level 10
8-10 Loftus St
SYDNEY NSW 2000
T: +61 (0)2 9251 0032
F: +61 (0)2 9475 0439
E: info@malachite.com.au W: www.malachite.com.au
OVERVIEWLorena Gold Project:
Malachite and Ore Processing Services Pty Ltd ("OPS") advanced the development of the Lorena Gold Project on the basis of the heads of agreement which the parties previously entered into. Pursuant to that agreement OPS will supply, commission and operate a modular mineral processing plant to produce gold doré on site.
The Company entered into a financing terms sheet with ResCap Investments Pty Ltd ("ResCap") in respect of a $5m facility for the purpose of funding its obligations to bring the Lorena Gold Project into production.
OPS is in the process of finalising its own financing.
Rescap and OPS financier completing final due diligence.
Optimisation metallurgical test work ongoing.
OPS commenced engineering of CIL plant.
Application for amendment to Environmental Authority lodged.
Development is on track for production to commence around September 2017.
Corporate:
The Company obtained shareholder approval at its Annual General Meeting to extend the maturity date on existing Convertible Notes to 1 July 2017 and to be able to capitalise interest for those notes.
The Company successfully completed a Share Purchase Plan ("SPP") which raised $384,000 as additional working capital while it progresses the ResCap financing facility.
31 January 2017
Lorena Gold ProjectMLs 7147, 90192 - 90196
The Company is proceeding with the development of the Lorena Gold Project, which is located about 15km east of Cloncurry in northwest Queensland, on the basis of a non-binding heads of agreement previously entered into with Ore Processing Services Pty Ltd ("OPS") (the "Malachite Heads of Agreement") to establish and operate a mineral processing plant to produce gold on site at the Lorena.
OPS will take responsibility for the supply, commissioning and operation of the whole mineral processing plant to produce gold doré on site.
OPS has entered into a binding agreement to acquire plant and equipment from MKS Precious Metals (Australia) Pty Ltd that had previously been constructed on the Lorena Gold Project site ("Lorena Concentrator Plant"). This is expected to facilitate a speedier and more cost effective development of the project. When OPS finalises this acquisition it will then be required to both complete the Lorena Concentrator Plant and to supply a modular CIL circuit to provide an end to end mineral processing plant capable of producing gold dore on site. The acquisition of the Lorena Concentrator Plant does not have any material impact on the terms of the Malachite Heads of Agreement. OPS have advised that their efforts to procure their financing of the Lorena Gold Project were well advanced.
The total cost of the whole mineral processing plant and the time frame within which it will become available are both expected to be reduced by the acquisition of the Lorena Concentrator Plant. This will benefit the Company by reduced equipment lease fees and by achieving earlier gold production.
Lorena Concentrator Plant
During the quarter both Malachite and OPS advanced finance facilities to fund their respective project commitments to develop the Lorena Gold Project.
OPS commenced engineering on the CIL plant and optimisation of the metallurgical flowsheet continued as part of that work.
Malachite held discussions with the Queensland Department of Environment and Heritage Protection during the quarter regarding the revised project development strategy and has now lodged an Environmental Authority Amendment Application with the Department to permit development of the proposed end to end mineral processing plant capable of producing gold dore on site.
Both companies are aiming to bring Lorena into production around September 2017.
About the Lorena Gold Project
It is expected that the Lorena Gold Project will produce around 30,000 to 35,000 ozs of recovered gold in the eighteen months of production from an open cut operation.
Malachite believes that the Lorena Gold Project has potential for resource extensions at depth. Proving up these additional resources will require confirmation by drilling which Malachite proposes to undertake at the earliest opportunity subject to sufficient funding being available. The Company also believes that there are considerable regional opportunities which it will be able to pursue once the plant is operating to enhance the commercial return from project.
CorporateShare Purchase Plan
During the quarter the Company successfully completed a Share Purchase Plan ("SPP") which raised
$384,000 as additional working capital while it progresses the ResCap finance facility.
Existing Convertible Notes
Shareholder approval was obtained at the Company's Annual General Meeting to extend the maturity date on existing Convertible Notes to 1 July 2017 and to be able to capitalise interest on these notes.
TenementsProject Tenement Number
QUEENSLAND
Lorena
NEW SOUTH WALES
Conrad (subject to sale to Silver Mines Limited)
NEW SOUTH WALES
Tooloom
ML 7147, ML 90192 , ML90193, ML 90194, ML 90195, ML 90196
EPM 18189, EPM 18908
ML 5992, ML 6040, ML 6041
EPL 1050
EL 5977
EL 6263
Exploration/Mining Tenements Acquired/Disposed of during the Quarter
Project Location Tenement MAR
Interest
NIL
Beneficial Interest in Farm-In or Farm-Out Acquired/Disposed of during the Quarter
Project Location Tenements MAR
Interest
NIL
Further InformationFor further information, please contact the Company on (02) 9251 0032 or by email at info@malachite.com.au or visit the Company's website at www.malachite.com.au
Malachite Resources Limited
Appendix 5B 31 December 2016
Appendix 5B
Malachite Resources LimitedSuite 2, Level 10, 8-10 Loftus Street Sydney NSW 2000
Tel. (02)9251 0032 Fax (02) 9475 0439 www.malachite.com.au
Rule 5.5
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity
Malachite Resources Limited
ACN or ARBN
Quarter ended ("current quarter")
075 613 268
31 December 2016
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (6 months) $A'000 |
| (36) | (74) |
(126) | (126) | |
(3) | (31) | |
(98) | (169) | |
- | 1 | |
3 | ||
(263) | (396) |
| - | 50 |
- | 50 |
+See chapter 19 for defined terms 1 September 2016
1
Malachite Resources Ltd. published this content on 31 January 2017 and is solely responsible for the information contained herein.
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