Ann: Malachite in Discussions to Develop Lorena Gold Project, page-17

Wow, interesting comments, so thought I would add some.

From my understanding the BCD funded gold concentrate plant is almost complete and unfortunately, that is all the plant can produce is gold concentrate. It needs either BCD leaching and electro-wining plant in Tasmania or build their own. With BCD in its current state, possibility exists it will not be them. Yes the gold concentrate could be toll treated by another gold producer but dependent where they are the freight cost could be high. Having said that getting it from outback Qld to Tassie was never going to be cheap anyway.

For MAR to add the necessary leaching and electro-winning circuit would take in my estimate at least a year from design concept, approval, build and commission. So initial third party treatment produces the fastest way to get the gold out of the ground.

My view of waht MAR are doing and in my opinion doing correctly is to:

1. See if there are any other parties who may come along, buy out BCD and finish the existing plant and maybe build the leaching circuit and electro-wining plant. I think this is what all the discussions is about.
2. Raise capital as they are planning to do and use it for exploration. I see this as a clever move as they want to expand the considered resource base to a confirmed resource base close to the existing plant. By doing this they will show a bigger resource and therefore more parties will be interested in a JV.

So, personally, I will participate in the SPP, and allow MAR to be more of a gold explorer again for a while and not worry about being a gold producer at this time. Once a bigger resource is confirmed (which hopefully will be the case) then the income potential for the company increases and the SP should also reflect this. It also saves them spending income at a later date to fund more exploration as the capital raising will pay for it.