Malachite Resources expects first gold production from its Lorena project in north-west Queensland around mid-December.

In a quarterly report released today the company said mining at the site had commenced.

Commissioning of fixed concentrator plant was commencing and commissioning of the CIL plant was due to start about November 20, it said.

BIM Metals has been providing consultancy and management advice as Malachite Resources and OPS (Ore Processing Services) develop the project, expected to have an output of 30,000-35,000oz of recovered gold over an 18-month mine life.

Malachite announced to the market in July that its Lorena Gold Project Joint Venture had been extended to bring in Chinova and BIM Gold via their Cloncurry Gold Recovery Joint Venture.  This included a $2.5 million capital injection to kick off the Lorena gold project.