Lorena Gold Project Malachite AGM 29 November 2017
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. Such forward-looking statements only speak as to the date of this Presentation and MAR assumes no obligation to update such information. Competent Person Statement 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
Lorena Gold Project The Lorena Gold project, 15km east of Cloncurry and 135km east of Mt Isa, Qld Located on 6 Mining Leases covering 2.2km2 Initial development to produce 30,000 to 35,000 ozs of gold over eighteen months from an open cut operation. Fully permitted with development commenced July 2017. 3
Lorena Project Site Footprint 14km to Cloncurry 2km of dirt road to site ML90193 ML90196 ML90192 ML7147 Access Point ML90195 ML90194 Fisher Creek Flinders Highway to Townsville Mt Isa Townsville Railway Line 4
Lorena Gold Joint Venture Malachite finalised a joint venture agreement with Ore Processing Services (OPS) and Cloncurry Gold Recovery (CGR) in July 2017. CGR is a joint venture between Chinova Resources (70%) and BIM Gold (30%). Chinova Resources holds a number of projects in the Mt Isa Inlier including the Osborne and Merlin projects. BIM Gold is part of the BIM Metals group: a private mining and contracting company, operating a number of projects in the Cloncurry and Mt Isa region. Lorena Gold JV Open Cut Interest Stage 1 Resources on Lorena MLs not included in open cut Malachite 55% 70% Tenement holder CGR 30% 15% BIM Metals is mine operator OPS 15% 15% Processing contract 5
Project Funding CGR and OPS are funding project development to the commencement of commercial production; CGR is funding the preliminary project capital requirements of $2.5m. CGR is completing preliminary capital works including construction of the tailings dam, water structures and carrying out initial mining; CGR is providing a CIL plant on site (CGR retains ownership) to treat both the gold concentrate and tailings; OPS acquired the existing Lorena Concentrator Plant (OPS retains ownership); and CGR, OPS, and BIM Metals are funding the joint venture s ongoing working capital requirements in relation to the project in proportion to each joint venture party s interest on an interest bearing loan basis; 6
Lorena Gold Project - Resource High grade gold arsenopyrite zones in a shear hosted structure structurally controlled Good continuity Significant Drill Hole Results at less than 80m depth include: 15m @ 18.8g/t Au 26m @ 21.1g/t Au 7m @ 20.0g/t Au Cutoff Measured Indicated Total Au g/t Tonnes Au g/t Au Oz Tonnes Au g/t Au Oz Tonnes Au g/t Au Oz 5.0 34,700 11.7 13,100 57,000 15.6 28,600 91,700 14.2 41,700 2.0 68,700 7.6 16,700 110,800 9.5 34,000 179,500 8.8 50,700 1.0 88,300 6.2 17,600 165,900 6.9 36,600 254,200 6.6 54,200 0.5 105,800 5.3 18,000 228,200 5.2 38,000 334,000 5.2 56,000 0 156,100 3.7 18,400 513,100 2.4 39,500 669,200 2.7 57,900 7
Lorena Gold Project Mining approximately 250,000t at 5.0g/t from an initial open cut operation (Stage 1). Around 30,000 to 35,000 ozs gold recovered from the open cut. Overall metallurgical recovery of around 75% for sulphides. Recovery of 90% to concentrate and 85% from concentrate to CIL. Ore is of medium hardness and non-refractory. Processing up to 15,000 tonnes per month. Operating costs forecast at around A$1,000/oz (including project plant charges). Commissioning of concentrator plant commenced in late Oct/early November 2017. CIL plant commissioning starting by end of this month. First gold production before year end with steady state operations expected by end of January 2018. 8
Lorena Project Site Layout Plant Site Pit Tailings Dam Waste Rock Dump 9
Lorena Project Mining 10
Lorena Project Tailings Dam and Processing Plant 11
Lorena Project Plant 12
Lorena Project Targeting Resources at Depth Potential to increase the mine life via an underground operation subject to delineating resources beneath the open cut. 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 Significant underground mining potential Malachite has 70% JV interest 14
Lorena Gold Project Underground (Stage 2) Portal designed to come off near bottom of pit in competent ground Conventional underground mining 5.3m at 13g/t Au at a depth of 200m is a mineable width for underground Lorena JV considering best approach for exploration via new review of data Forecast exploration in March 2018 Third party ore sources available prior to a potential underground operation. Initial Target Area 5.3m @ 13g/t Au Lorena Long Section - Targeting resources at depth 15