Malachite Resources NL

Published : November 02nd, 2015

Quarterly Activities and Cash Flow Report

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
Keywords :   Copper | Gold | Silver | Switzerland |

Quarterly Activities and Cash Flow Report


QUARTERLY REPORT for the period ending 30 September 2015


Issued Shares: 1,125,567,291

ABN: 86 075 613 268


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


T: +61 (0)2 9251 0032

F: +61 (0)2 9475 0439

E: [email protected] W:

30 October 2015


  • Lorena Gold Project:

    • In July 2015, Malachite executed a financing Letter of Offer with MKS Switzerland (SA) ('MKS') for the development of Lorena. One of the conditions to the offer was a fully costed project development plan.

    • In September 2015, Malachite completed the project development plan and concluded that the cost to complete the Lorena project was more than that assumed by MKS.

    • Malachite and MKS agreed that without further financing from MKS and without a change in financing and concentrate purchase terms as stated in the Letter of Offer, the MKS financing offer could not be provided nor accepted. As such, MKS withdrew its financing offer.

    • Since then, Malachite and the Receivers and Managers to BCD have been negotiating terms to settle the partly constructed Lorena concentrate plant.

    • As part of the Lorena project development plan, the Company assessed that the benefits from producing gold (rather than a gold concentrate) on site were compelling.

    • Malachite is progressing discussions with financiers to develop Lorena on the basis that gold will be produced on site.

    • The Company is progressing with the engineering of a CIL gold plant to enable gold to be produced on site.

  • Malachite has arranged a drilling contractor to carry out a 500 metre reverse circulation drilling exploration program at the Lady Mary prospect commencing mid-November 2015.

  • Malachite has received the cash component from the sale of the Conrad project to Silver Mines Limited ('SVL'). The total consideration was $450,000 in cash, $125,000 in SVL shares and a 1% net smelter return royalty.

  • Malachite successfully extended the maturity date of its Convertible Notes to 5 May 2016.

Lorena Gold Project

MLs 7147, 90192 - 90196

In 2013, Malachite Resources Limited ('Malachite') entered into an agreement with BCD Resources NL (BCD) for BCD to sole fund and manage the development of the Lorena Gold Project (Lorena). In January 2015, BCD put the development site work at Lorena on hold. In late January 2015, MKS Switzerland (SA) ('MKS'), the ultimate secured lender to BCD appointed Receivers and Managers to BCD. In May 2015, Malachite terminated the agreement with BCD.

On 16 July 2015, Malachite announced that it had executed a financing Letter of Offer with MKS which was to allow Malachite to proceed with the development of the Lorena Gold Project using the plant and equipment partially constructed by BCD, under the previous agreement that was terminated in May 2015.

The financing offered by MKS was subject to certain conditions precedent, one of which was a Project Development Plan ('PDP') to be prepared by Malachite including a cost estimate to complete the project development. Malachite engaged Ore Processing Services Pty Ltd ('OPS') to carry out the PDP. OPS, in conjunction with Malachite, completed the PDP and one of the main conclusions was that the cost to complete the Lorena project was more than that determined by BCD and assumed by MKS. In September 2015, MKS and Malachite agreed that without further financing from MKS and without a change in financing and concentrate purchase terms as stated in the Letter of Offer, the MKS financing offer could not be provided nor accepted. As such, MKS withdrew its financing offer.

Post quarter, Malachite and the Receivers and Managers to BCD have been negotiating terms to settle issues relating to the partly constructed Lorena concentrate plant to provide Malachite with unfettered access to the plant.

As part of the PDP, Malachite and OPS, carried out a development scenario which incorporated building a cyanide plant ('CIL') on the back of the concentrate plant at Lorena so that gold dore could be produced on site. The benefits of this scenario compared to producing a gold concentrate and transporting the concentrate to BCD's plant at Beaconsfield are compelling and included:

  1. An integrated processing flow sheet at Lorena which does not require a concentrate to be produced or stored;

  2. No costs for the transporting of concentrate to Beaconsfield which have a significant impact on operating cost;

  3. Reduced overall operating costs because only running one processing site;

  4. Less working capital required since there is no transport and processing of a concentrate;

  5. The ability to mine a lower cut-off grade because of the lower operating costs which results in more ounces processed and a six to nine month longer mine life;

  6. Less mining risk since lower grade material can be mined and processed rather than stockpiled on site as previously contemplated;

  7. Better economics of treating any additional resources delineated at Lorena and in particular from a potential underground operation; and

  8. The ability to treat other ores in the region, both sulphides and oxides.

Whilst transporting of concentrate to Beaconsfield remains a viable option, the Company believes that it is appropriate to consider other development options, particularly as the cost to build a CIL plant at Lorena is roughly the same as the anticipated transport costs and capital treatment charges to treat a concentrate at BCD's Beaconsfield plant. Malachite and OPS are currently in discussions to complete the concentrate plant at Lorena with OPS to build and supply a CIL plant on a wet hire basis to produce

gold dore on site at Lorena. It is proposed that the CIL plant will be mobile so that it can be constructed off-site and be transported to Lorena by truck in modules.

Malachite has carried out a review of the timing to construct and get approvals for a CIL plant and believes that it will only take some three to four months longer than it would take to finish off the concentrate plant, complete site works and carry out pre-stripping for the scenario of producing a concentrate for shipment to Beaconsfield. Malachite and OPS are advancing the engineering work for a CIL plant on site.

Malachite has determined that its minimum funding requirements (including project working capital) to have Lorena in development are around $8 million.

Malachite continues to be in discussions with a number of financiers who remain interested in funding the development of the project provided gold is produced on site.

Subject to financing and negotiations with BCD's Receivers and Managers in relation to the partly constructed concentrate plant, it is now expected that an open cut operation at Lorena should commence in 2016.

As previously advised 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 believes that there are considerable regional opportunities which it will be able to pursue once the plant is operating at Lorena.

Exploration (EPM 18908)

During the quarter Malachite executed an agreement with the landowner to allow the Company to access and carry out exploration drilling on the Lady Mary prospect, which is some 5km east of the Lorena Gold Project. In October the Company carried out a cultural heritage survey and site clearance which enables the Company to drill test the Lady Mary prospect. Malachite has subsequently arranged for a drilling contractor to carry out a 500m RC drilling program on the Lady Mary prospect commencing mid-November. The program is expected to be completed by the end of November with assay results due for release in December.

The Lady Mary prospect has previously returned high grade rock chip samples and is an anomalous gold copper zone with a strike length of around 400m.

The Company regards the tenor, width and continuity of gold and copper values in the soils at its Lady Mary prospect as extremely positive. The soil program and previous rock chip sampling have outlined a robust gold-copper drill target. The discovery of a resource at Lady Mary could potentially supply additional ore to a mill at Lorena.

Lorena Gold project located 15km east of Cloncurry, Qld

Conrad Project

In May 2015, the Company entered into an agreement with Silver Mines Limited ('SVL'), an ASX listed company with code SVL, to sell the Conrad Silver Project (Conrad) for $450,000 in cash, $125,000 in SVL shares and a 1% net smelter return. Up to 30 September 2015, SVL has paid cash of $175,000 to the Company. In October, SVL completed its rights issue and SVL paid the Company the cash balance of

$275,000 owing to complete the cash component of the sale. Malachite and SVL are in the process of finalising the issue of SVL shares to the value of $125,000 and concluding documentation to effect the transfer of the Conrad tenements. Malachite will retain an ongoing interest in the Conrad project via a 1% net smelter return on all metals produced from the Conrad Project.


Extension of Existing Convertible Notes

Malachite has on issue Convertible Notes (Notes) with a face value of $2,150,000 (including six Notes that, subject to shareholder approval at the upcoming annual general meeting of the Company, will be issued to Directors or their associates). The Company successfully negotiated with the Noteholders to extend the maturity date of these Notes by 7 months from 5 October 2015 to 5 May 2016. In October 2015, the Company paid each Convertible Noteholder a Rollover Fee of 1.75% of the Notes Issue Price. In order to preserve cash the Rollover Fee was paid by the issue of Ordinary Shares at a 20% discount to the 30 day VWAP to 5 October 2015.

Read the rest of the article at
Data and Statistics for these countries : Switzerland | All
Gold and Silver Prices for these countries : Switzerland | All

Malachite Resources NL

ISIN : AU000000MAR2
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

Malachite Res. is a tin and lead exploration company based in Australia.

Malachite Res. holds various exploration projects in Australia.

Its main exploration properties are ELSMORE, MT LIDSTER, RIVERTREE, TOOLOOM, VOLGA, ABINGTON, CONRAD SILVER and DELUNGRA in Australia.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
Corporate Presentations of Malachite Resources NL
5/28/2008Lonsec Research Report- Resources Update (includes on Malach...
Annual reports of Malachite Resources NL
2008 Annual report
Project news of Malachite Resources NL
2/18/2011(Conrad Silver)ASX Announcement - Conrad Silver Project Update
2/11/2011Acquisition of Lorena Gold Project Completed
2/28/2010(Conrad Silver)New Work Extends Silver Mineralisation at Conrad
2/25/2010(Tooloom)Boardroom Radio Interview - Dr. Garry Lowder: Encouraging Ne...
1/11/2010(Tooloom)Drilling at Tooloom Gold Project Resumes after Bushfi
12/10/2009(Tooloom)Drilling at Tooloom Suspended due to Bushfires
10/20/2009(Tooloom)Drilling commenced at Tooloom Gold Project
9/7/2009(Delungra)Drilling to commence at Delungra
11/18/2008(Conrad Silver)ASX Announcement - Conrad Silver Project - Update
8/11/2008(Conrad Silver)Major Resource Upgrade for the Conrad Silver Project
8/4/2008(Conrad Silver)Conrad Silver Project - New Drilling Results Continue to Bui...
5/9/2008(Conrad Silver)Conrad Silver Project - Good Results continue
4/1/2008(Elsmore)New Tin Discovery at Elsmore Project
1/16/2008(Conrad Silver)Exciting Regional Potential at Conrad Silver Project
11/5/2007(Conrad Silver) Estimate over 10Moz of Silver Equivalent
10/8/2007(Conrad Silver)Spectacular New Results at Conrad Silver Project
8/13/2007(Conrad Silver)Resource Drilling at King Conrad Extended
6/3/2007(Conrad Silver)Conrad Silver Drilling Report #3
4/27/2006Silver drilling at Conrad highly successful: exciting…
Corporate news of Malachite Resources NL
7/14/2016Quarterly Activities and Cashflow Reports - June 2016
5/25/2016Shareholder Approval - Convertible Notes
5/24/2016Response to ASX Appendix 5B Query
12/16/2015Assays received from Lady Mary Prospect
12/4/2015Change of Director's Interest Notice - Andrew McMillan
12/4/2015Change of Director's Interest Notice - Terry Cuthbertson
12/4/2015Change of Director's Interest Notice - James Dean
11/30/2015Results of Meeting - AGM
11/26/2015Drilling Completed at Lady Mary Prospect
11/2/2015Quarterly Activities and Cash Flow Report
10/29/2015Notice of Annual General Meeting/Proxy Form
10/19/2015Appendix 3B - Convertible Note Rollover Fee Shares
10/1/2015AGM to be held 30 November 2015
9/30/2015Full Year Statutory Accounts - Year Ended 30 June 2015
9/30/2015Project and Corporate Update
9/2/2015Revised Terms Agreed re Sale of Conrad Silver Project
7/31/2015Quarterly Activities and Cashflow Report - June 15 Qtr
7/15/2015Proceeding with the Development of Lorena Gold Project
4/27/2015Share Purchase Plan Closing Date Extended
4/16/2015Share Purchase Plan Letter and Application Form
3/31/2015Trading Halt
3/16/2015Half Yearly Report and Accounts
3/2/2015MAROA Options Expire 31 March 2015
1/30/2015Quarterly Activities and Cash Flow Report - Dec 14 Qtr
1/22/2015Malachite Reviewing Position at Lorena Gold Project
1/21/2015Lorena Gold Project Update
1/21/2015Reinstatement to Official Quotation
1/21/2015Suspension from Official Quotation
1/15/2015Trading Halt
12/3/2014Appendix 3B - AGM approved Shares and Convertible Note
12/1/2014AGM Presentation
11/2/2014Convertible Notes
3/4/2011ASX Announcement - Placement Completed Raising $517,500
7/19/2010Quarterly Activities Report
5/26/2010Results of Meeting and Exploration Update
5/18/2010From Successful Explorer to Emerging Miner
4/29/2010Boardroom Radio Broadcast
1/28/2010Quarterly Activities Report
12/8/2009Completes $300k Placement
10/20/2009Boardroom Radio interview with Dr. Garry Lowder
10/15/2009form strategic alliance with Chinese Investor Group
9/4/2009Share Purchase Plan successfully raises $933,295
7/6/2009Tin Mining Plans Boosted by Results of Dry Processing Test W...
5/28/2009ASX Announcement - Placement Raises $312,140
3/11/2009(Audio) Audio Broadcast - 1.30 pm Today
2/17/2009(Audio) Interview with Dr. Garry Lowder - Exploration Update...
12/18/2008Interview with Dr. Garry Lowder - Upgraded Resource at Conra...
11/28/2008ASX Announcement - Directors Options to be Amended - Exercis...
11/7/2008Interviews with Dr. Garry Lowder
11/5/2008Tin Strategy
9/22/2008AGM to be held Tuesday 25 November 2008
9/17/2008Interview with Dr. Garry Lowder
8/20/2008ASX Announcement - Exploration Update
8/3/2008Silver Lining From Commodity Resurgence
7/24/2008June 08 Quarter Activities Report
7/2/2008Finance News Network - Interview with Dr. Garry Lowder
5/30/2008Lonsec Resources Update - Malachite Resources NL
4/23/2008(Video) Finance News Network Interview
2/11/2008Malachite Resources NL: ASX Announcement - Exploration Updat...
1/21/2008Quarterly Activities Report
12/18/2007Volga Drilling Further Update
12/14/2007Placement Raises $5.7m
11/21/2007Chairman's Address to the Annual General Meeting
11/19/2007Volga Project Update
11/16/2007 Placement of up to 20m Shares
9/17/2007Robust Mining Project Emerging
5/1/2007Exploration Update on Conrad Silver, Tooloom Gold and ISA re...
3/28/2007Conrad Drilling Update
2/28/2007Corporate Insights Interview
4/20/2006quaterly report ending 31 march 2006
1/26/2006More gold at Phoenix: deeper drilling enhances mine potentia...
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
AU$ 0.057
01/29 10:00 -
Prev close Open
0.057 0.062
Low High
0.057 0.066
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
- -  0.057 -%
Volume 1 month var.
648,781 -%
24hGold TrendPower© : -31
Explores for Copper - Gold - Lead - Silver - Tin - Zinc
Interactive chart Add to compare
Print Compare Export
Last updated on : 12/28/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 7.62-0.13%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 2.20+0.00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 7.27-0.68%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 0.67+6.35%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.06+30.00%Trend Power :
Closes Bridge Loan Financing
CA$ 2.13-0.47%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 9.41-3.59%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.22+0.00%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.24-2.04%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 1.44-4.64%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 46.69-0.13%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.02+0.00%Trend Power :