Malachite Resources and Ore Processing Services (OPS) have agreed to establish and operate a mobile mineral processing plant at the former’s Lorena gold project in Queensland, Australia.

Under the agreement, OPS will supply, commission and operate the whole plant, which will be constructed as mobile units.

Both the companies are currently evaluating another project in Queensland, which could potentially use the concentrator module once the open cut campaign for Lorena concludes.

OPS will provide a complete solution for the mineral processing requirements for the Lorena project and has already completed its technical review, in addition to performing site inspections.

"The Malachite board is delighted to have reached agreement with Ore Processing Services that establishes a sound platform for development of the Lorena Gold Project."

The agreement is subject to conditions including completion of appropriate environmental approvals to allow a CIL plant on site and concluding confirmatory design test work on the CIL circuit, among others.

Malachite Resources chairman Terry Cuthbertson said: "The Malachite board is delighted to have reached agreement with Ore Processing Services that establishes a sound platform for development of the Lorena Gold Project and achieving gold production at the earliest opportunity.

"Following protracted but ultimately unsuccessful efforts to reach an appropriate commercial agreement with BCD Resources NL (BCD), the Malachite Board is now excited at the prospect of moving ahead with the development of the Lorena Gold Project entirely independently of BCD."

The Lorena project is located about 15km east of Cloncurry and expected to produce around 30,000oz to 35,000oz of recovered gold in the 18 months of production from an open cut operation.