Malachite Resources has produced first gold from the Lorena Gold Mine situated 15km east of Cloncurry in north-west Queensland, Australia.

The majority of the gold pour was obtained from lower grade ore that had been processed in the first place as the plant processes and recoveries were being optimised in order to achieve steady state production.

Malachite Resources chairman Terry Cuthbertson said: “We are delighted to have achieved this significant step in the development of the Lorena Gold project and to have also achieved ‘Gold Producer Status’ for the first time since listing on the ASX.”

Malachite has also started processing of higher grade ore through the processing plant and expects to produce gold on a regular basis.

“We are delighted to have achieved this significant step in the development of the Lorena Gold project.”

The company is also carrying out mining during the ongoing processing of additional ore that was previously delivered to the ROM pad.

It further aims to improve the supply of ore to the processing plant in the short to medium term with the recent removal of waste ore from the open cut.

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By GlobalData

The mining of ore is also set to ensure full commissioning of the processing plant.

In February, Malachite started a 2,400m reverse circulation (RC) drilling programme to identify additional gold resources near the surface and below the existing pit of the Lorena Gold Mine to extend the existing open-cut operation.

An analysis of the drilling, which has now been completed, is yet to be revealed.

The Lorena Gold Project, in which Malachite has a 55% joint venture interest, is estimated to produce between 30,000oz and 35,000oz of recovered gold in the 18 months of production from an open-cut operation.