BCD Resources, Malachite Resources Develop Lorena Gold Project in Queensland

---

Researched by Industrial Info Resources Australia (Perth, Australia)--BCD Resources Limited (ASX:BCD) has entered into a joint venture with Malachite Resources (ASX:MAR) to develop its Lorena gold project in Queensland, Australia. The high-grade gold resource is located about 15 kilometres from the mining town of Cloncurry, Queensland. It is estimated that it will produce about 50,000 ounces of gold in its first year of operation.

The terms of joint venture will see the proceeds from the mining operation to be shared on a 50/50 basis. However, upon production reaching 80,000 ounces, Malachite's share of proceeds will increase to 65%, and after 120,000 ounces it will increase further to 75%. BCD Resources will oversee the project development on a day-to-day basis and will handle the operations.

The recently completed engineering study by BCD charted out the potential for a 150,000-tonne-per-year flotation circuit at Lorena. The site also will have a crushing circuit, including a ball mill. The company is in the process of ordering the long-lead items and is inviting quotations from equipment suppliers.

The gold concentrate from Lorena will be transported to BCD's Beaconsfield gold processing facility in Tasmania. The flotation circuits from the Beaconsfield facility are currently being refurbished to be transported to the Lorena site. An estimated capital expenditure of approximately $40 million has been planned for the Lorena project, and BCD is expecting to have the project operational by the end of 2013.

The initial operations would last 16 months; however, both BCD and Malachite expect it to continue beyond that, with possible extensions and potential new resources from surrounding prospects. Companies anticipate that this will provide considerable regional opportunities once the plant is operational at Lorena.

Malachite is also in the process of developing a silver mine project in New South Wales. The joint venture with BCD Resources will see the rapid development of the Lorena project, which would help Malachite to develop its other projects, which are currently delayed due to funding issues.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.