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Malachite Resources has reported positive results from drilling hoped to extend its Lorena gold mine operations near Cloncurry.

The project achieved its first gold pour last month, with gold production expected on a regular basis.

Known resources are expected to support an 18-month operation, producing 30,000-35,000 ozs of recovered gold.

The company said today that recent reverse circulation drilling of 17 holes at the Lorena gold project had intersected some significant results which warranted further exploration to potentially increase the resources at depth.

Assays have been received for the first 10 holes.

In a statement to the market, Malachite Resources said a review of the pit design at Lorena would now be undertaken
concentrating on the south-east corner of the open cut to possibly extract further mineralisation.

It said drilling targeting the resource below the current pit has resulted in a gold intersection about 15m to 20m underneath the bottom of the current open-cut design.

Malachite has a 55 per cent joint venture interest in the Lorena gold project following the commissioning of the processing plant and will have a 70 per cent joint venture interest in any resource extensions at depth.

The company also believes that there are considerable regional opportunities which it will be able to pursue to enhance the commercial return from the project.