Malachite Resources AGM. November For personal use only. Malachite Resources Limited

Transcription

1 Malachite Resources AGM November Malachite Resources Limited

2 Disclaimer and Competent Person Statement Disclaimer This presentation may contain forward looking statements that are subject to risk factors associated with exploration and mining. It is believed that the expectations reflected in these statements are reasonable but they may be affected by variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. All references to dollars, cents or $ in this presentation are to Australian currency unless otherwise stated. Competent Person Statement The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Michael Donnelly, who is a full time employee of the Company. Mr Donnelly is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activities 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. Mr Donnelly consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The information in this report that relates to the Lorena Gold Project resource is extracted from the report entitled Resource Update at Lorena created and released to the ASX on 27 January 2012 (which contained a separate Competent Person Statement by Geos Mining). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person s findings are presented have not been materially modified from the original market announcement. 2 Malachite Resources Limited

3 Malachite Resources Malachite s main focus is developing the Lorena Gold project, 15km east of Cloncurry and 135km east of Mt Isa, Qld Located in a highly prospective region Malachite entered into a 50/50 joint venture with BCD Resources NL (ASX code: BCD) in July 2013 to develop the Lorena project. BCD is required to fund the development of the project to earn its joint venture interest. BCD is to construct a flotation processing plant to treat at least 120,000 tpa of ore at Lorena. Subject to statutory approvals, project construction to be carried out between January 2014 and April Concentrate transported to BCD s plant at Beaconsfield, Tasmania to produce gold dore. 3 Malachite Resources Limited

4 Lorena Gold Project Mining Leases Located on 6 Mining Leases covering 2.2km2 Adequate room for an open cut mining operation and then underground mining 15km east of Cloncurry only 2km of dirt road Close to infrastructure Mine camp in Cloncurry Concrete batching plants in Cloncurry Hospital in Cloncurry Airport in Cloncurry flights to/from Brisbane/Townsville Plant and equipment available in Mt Isa 4 Malachite Resources Limited

5 Lorena Gold Project - JV with BCD Resources Initial 50/50 Joint Venture with ASX listed BCD Resources over MLs BCD is the Manager BCD to sole fund the development of the project Gold grade mined around 11g/t 90% gold recovery to concentrate grading 50g/t Au Gold-bearing concentrate transported to BCD s Beaconsfield gold plant in Tasmania 85% gold recovery forecast from concentrate to gold dore Gold recovered in the first year of operation around 30,000 ozs from an open cut operation Cash operating costs forecast of A$850/oz. MAR 50% share forecast to be around 15,000-18,000 oz of gold recovered over months from an initial open cut operation (depending on A$ gold price). At A$1450/oz gold price, forecast to generate around $9m of cash flow to MAR from the initial open cut. 5 Malachite Resources Limited

6 Lorena Project Project Timeline Engineering drawings of plant and site completed Preferred construction contractor selected Open cut planned Tailings dam and waste rock dump designed Discussions with mining contractors. Timing subject to statutory approvals. Amendment to existing Environmental Authority (EA) submitted to Qld Government (DEHP) expected mid December, subject to any conditions imposed Approvals for mining expected mid January 2014 following submission of plan of operations. Construction expected mid January to April 2014, subject to approvals First concentrate forecast May Malachite Resources Limited

7 Lorena Project Equipment Purchased Major equipment built including primary ball mill (in transit) and magnetic separators (on site already). Plate and frame filter purchased (to site in Dec) Plate and frame filter Primary Ball Mill manufactured in Turkey New magnetic separators being unloaded at Lorena 7 Malachite Resources Limited

8 Lorena Project Equipment from Beaconsfield Flotation cells, regrind ball mill, thickener tank, cyclones and pumps ready for transport to site from BCD s Beaconsfield plant. Regrind Ball Mill Various pumps Flotation cells Thickener being dismantled 8 Malachite Resources Limited

9 Lorena Project Project Activities Finalise cultural heritage clearance in December Prepare site and plant foundations in December Fabricate steel in December Construct water supply borefield in January Contractor to site in January to construct flotation plant and primary ball mill plant Mining contractor to site in March to begin tailings dams and pre-strip (after the wet) Commissioning in April with concentrate production in May for shipment to Beaconsfield 9 Malachite Resources Limited

10 Lorena Project Site Layout 10 Malachite Resources Limited

11 Lorena Project Plant Construction Area 11 Malachite Resources Limited

12 Lorena Project Plant Drawings Flotation Plant Primary Ball Mill 12 Malachite Resources Limited

13 Lorena Project Robust Mining 120,000 tonnes at 11g/t for 42,000 ounces Au Strip ratio of 20:1 Depth of pit approx. 70 metres High gold grade means robust project Pit shape does not change with recently observed A$ gold prices. Low grade material (grade between 2g/t and 3.5g/t Au) will be stockpiled for later processing provided stage 2 plant constructed (for an underground operation). 13 Malachite Resources Limited

14 Lorena Gold Project High Gold Grade Total resource of 203, g/t for 56,600 ozs Au at 2g/t gold cut-off High grade zones in a shear hosted structure structurally controlled Significant Drill Hole Results at less than 80m depth include: 18.8g/t Au 21.1g/t Au 20.0g/t Au 14 Malachite Resources Limited

15 Lorena Project Targeting Resources at Depth 3 holes drilled for down hole EM surveying in 2012 Drilling intersected 5.3m at 13g/t Au at a depth of 200m Survey highlighted 2 strong electromagnetic conductors that represent sulphide targets Each target is similar in size to the current resource Excellent potential for resource additions at depth Underground mining Planning to drill as soon as practicable once Lorena operating MAR retains upside at depth: Once production exceeds: 80,000 equiv. oz of saleable gold MAR 65% / BCD 35% 120,000 equiv. oz of saleable gold MAR 75% / BCD 25% 15 Malachite Resources Limited

16 Lorena Gold Project Underground (Stage 2) Planning for initial holes to test underground potential Portal to come off bottom of pit in competent ground Construct back end of the processing plant (cyanide leaching and elution) at Lorena Gold dore produced on site Reduce operating costs - no transport to Beaconsfield Also treat low grade material from open cut (2g/t to 3.5g/t Au) Conventional underground mining 5.3m at 13g/t Au at a depth of 200m is a mineable width for underground 16 Malachite Resources Limited

17 Lorena nearby EPMs 100% owned by Malachite 7km contact between the Toole Creek Volcanics and the Mt Norna Quartzite. Located 5 km south and west of Lorena High copper and gold assays from rock chip samples (72g/t Au and 19% Cu) In 2013, drill targets generated from soil geochemistry at both Lady Mary and Bloodwood prospects 450m strike length target at Lady Mary 300m strike length target at Bloodwood 17 Malachite Resources Limited

18 Malachite Strategy 2014 Develop Lorena by May 2014 subject to Statutory Approvals Malachite s share of cash flow from the initial pit is expected to be around $8-10 million assuming A$1,450 gold price Use JV cash flow to drill test Lorena at depth and on surrounding EPMs Prepare for a potential underground operation at Lorena. Review new project opportunities in the Cloncurry region to feed mill. Review new project opportunities. 18 Malachite Resources Limited

19 Appendix Lorena Resource Estimate Process flow sheet at Lorena Process flow sheet at Beaconsfield 19 Malachite Resources Limited

20 Lorena Resource Estimate Resource Estimations for A Lode Cut-off Measured Indicated Total Au g/t Tonnes Au g/t Au Oz Tonnes Au g/t Au Oz Tonnes Au g/t Au Oz , ,100 57, ,600 91, , , , , , , , , , , , , , , , , , , , , , , , , ,900 Resource Estimations for B Lode Cut-off Indicated Inferred Total Au g/t Tonnes Au g/t Au Oz Tonnes Au g/t Au Oz Tonnes Au g/t Au Oz 5.0 2, , ,200 13, , , , ,100 23, , , , ,600 34, , , ,000 45, ,900 53, , , , , , , ,200 Resource estimated by Geos Mining in January 2012 Feasibility using cut-off grade of 2g/t gold Resource contained in two shear lodes, A and B Most of the resource in Lode A Total resource of 203, g/t for 56,600 ounces of gold at 2g/t gold cut-off 20 Malachite Resources Limited

21 Process Flow Sheet - Lorena 21 Malachite Resources Limited

22 Process Flow Sheet - Beaconsfield 22 Malachite Resources Limited