https://www.i-q.net.au/main/malachite-pulls-out-of-lorena-to-end-jv-dispute#
As a shareholder in MAR at the time, ore processing was a fiasco with Lorena Gold Mine Pty Ltd and Ore Processing Services (OPS).
Partly this was due to MAR not providing adequate funds for cyanide stock for the processing. The processing manager sounded like a decent, hardworking fellow and was spitting chips about the lack of funding for the cyanide feed before he got the boot.
It was one of my worst investments. A very stressful and disheartening narrative.
Gold recovery was at 62% in their campaign.
Fellow posters can read about it in the links below.
Not a lot of confidence in the Marachite/Lorena processing plant project it got resolved in a Deed of Forgiveness, and Marachite got out of mining Gold, their share price collapsed. They now work in Nickel. I still hold and their SP is gradually recovering. I topped up at the bottom so I am breaking even now.
MAR - Gold recovery was also down on expectations due to "problems with the availability of cyanide (due to
working capital constraints), differing ore mineralogy than expected and the presence of cyanide soluable copper in the ore".
We don't have any of these problems. They blamed their geologist, they blamed their processing contractor and their mining manager, JV with multiple partners became very litigation and Lorena and OPS got battered and bruised.
Marachite initially purchased the Lorena Plant with the intention to pull it apart and transport it in modules onsite. Maybe that is the longer term play by SB here.
http://www.malachite.com.au/irm/PDF/aea32ed0-5e69-4be2-8c85-6c280407e5fc/2018AGMPresentation
Maybe Laneway have got a sweet deal here and price of gold is high and may climb further. We are speculating without having a lot of details.
https://www.northweststar.com.au/st...osts-a-loss-at-below-par-lorena-gold-project/
https://www.marketscreener.com/quot...e-Resources-Lorena-Gold-Mine-Update-28066876/
Maroon was a reliable processor. Disappointing we couldn't continue with them or buy them and ship them over. But with a 0.4MOz deposit why bother?
The deal with Lorena is a short-term option .... if Lorena/OPS stuff things up again with Laneway they will be finished as a processor so a lot on the line for them. And the gold deposits in Lorena are up in the air after Marachite pulled out so about 30,000 Ounces of gold, and all the tailings from the failed processing campaign may be there. The site may have some hidden JORC for underground mining The mine life was estimated to be 18 months. So the plant may be good to purchase for long term processing - move it on site at Agate Creek for 400kOz, rather than waste it on a 30kOz tonne deposit at Lorena.
https://www.mining-technology.com/projects/lorena-gold-project-queensland/
I respect Shellbell's position to sell . But I am going to keep my powder dry and hold until the end of this mining campaign (to the start of the wet season). I have confidence in Scott Hall and the crew to get their side of the work done. I think withdrawing and selling at the start of a mining campaign with record gold prices is contrary to my investment plan with this stock. I expect the price to rise once we HAUL DIRT.
If there is a Bonanza zone at Agate Creek I have confidence Scotty will find it. If there is a major deposit at Jubilee or other deposits in Agate Creek Scotty will find it. He is a professional, and the BOD need to give him the funds and freedom to get out there, hire staff in NZ.
IF directors do NOT ask for a remuneration, and follow ARV's example, cut their directors fees by 40% and pump this money into the NZ exploration in QLD wet season SH will regain confidence. Nobody wants to see a 4 month hiatus with nothing happening, and directors getting paid to do nothing.
(20min delay)