Tailings specialist NQ Minerals PLC (NEX:NQMI) is to take control of the mothballed Hellyer gold mine in Tasmania, Australia through a A$20mln (£11.8mln) deal that could see it in production within a year.
In a significant deal for the NEX-listed company, NQ said Hellyer is a permitted project project with life of mine revenues exceeding A$1.3bn (US$1.033bn) based on management estimates.
Other eye-catching numbers include a post tax net present value of A$276mln (US$210mln) compared to start-up requirements of just A$20mln.
All other infrastructure is also largely in place at the former producing mine, which has tailings dumps in four areas.
In total, these amount to 11.24mt with a JORC compliant resource estimated at 9.5mt, which at 2.61g/t is the equivalent of 796,000 oz of gold.
There is also a potential 32mln oz of silver, 287,800 tonnes of lead and 237,900 tonnes of zinc.
NQ wil be a producer within 12 months believes chairman
Brian Stockbridge, NQ’s chairman, said Hellyer will be a flagship project for the junior.
“First work will involve the refurbishment of the existing operating facilities in order to extract and treat the large high-grade tailings deposit on site and produce three marketable concentrates (lead, zinc, gold/silver/pyrite). “
Over the longer term, he said Hellyer can be a world-class, company-maker project that blends well with its North Queensland assets.
NQ is facilitating the deal through the acquisition of owner Keen Pacific and its subsidiaries Ivy Resources and Hellyer Gold Mines Pty.
The cost is A$20mln cash plus shares to give the Keen vendors a 29.9% stake in NQ.
An A$8.5mln loan facility from a New Zealand family office will finance completion.