On December 21, 2018, Malachite Resources Limited announced the operational performance of the Lorena Gold Mine during the October-November drilling campaign.
The Lorena project is a Joint Venture between Malachite, CGR (“Cloncurry Gold Recovery Management Pty Ltd”) and OPS (Ore Processing Services) and t is located about 15km east of Cloncurry (northwest Queensland). CGR is the manager of a joint venture between Chinova Resources Pty Ltd (70%) and BIM Gold Pty Ltd (30%).
Each party’s interest in the Open Cut operations at Lorena is as follows (ASX announcement dated 21st December 2018):
The report suggests that the head grade, metallurgical recoveries, and plant usage were all lower than forecast in the November month and into December, continuing the trend observed during the September Quarter and in October even though the operation has moved into the processing of the expected higher grade sulphide ore.
Mining: In November, Ore delivers from the pit was above 1 g/t totaled 15,634 tonnes at weighted average grade of 1.75 g/t consisting of Low and Medium ore blocks only. During November, the operations had shown some hindrances with variable distribution of grade inside the mineralized zone. As an outcome, the overall average grade of ore delivered for processing was lower than the guidance provided last time for the month.
Processing: During November, the site processed 11,145 tonnes of Ore at an average rate of 27t/hr. Plant utilization was well under the target at 64% due to the stop/start of the processing plant from working capital constraints regarding cyanide purchases.
The head grade processed through the plant averaged 3.31 g/t gold with an average recovery of 44%. This was well below forecast and a function of the stop/start of the processing plant.
The mining site poured 616 ounces of gold and sold 722 ounces of gold for the month.
The maintenance team has completed several projects during the month. It includes a ball loader for the mill and laying the groundwork to upgrade the cyclone feed pump to allow the plant to achieve throughput rates well above 30t/hr.
Quarterly Performance: During the Quarter, as at 30 September 2018, the company had available cash of $1.674 Million. During the quarter, the company processed 38,472 tonnes at a grade of 3.34 g/t gold. The average rate of recovery was calculated around 74% with a production of 3,048 ozs of gold, this was below the guidance.
FY18 Financial Performance: The company generated a net loss of $1.095 million in 2018, representing an improvement of 18.41% over the loss of $1.342 million recorded in the corresponding period in 2017. Management fees received, and the expenses incurred for the development of the Lorena project were reported at $0.55 million and $0.467 million respectively.
Cash flows from operating activities were -$0.706 million (in 2017 it was -$0.583 million). Cash on 30 June 2018 was $0.071 million (In 2017, it was $0.519 million).
Stock performance: In the last six months, the share price of the company has shown a negative return of 37.50 percent as on 19 December 2018 and 16.67 percent down over the past One months. The shares closed at $0.002 today with a market capitalization of $2.78 million.
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