NQ Minerals PLC (LON:NQMI) (OTCMKTS:NQMLF) said the authorities in Tasmania have approved the company’s acquisition of the Mt Block permit around the firm’s flagship Hellyer base and precious metals project. The 46 square-kilometre area effectively triples NQ’s footprint.
“This tenement is underexplored and has the potential to host new mineralisation close to NQ's Hellyer processing plant," NQ chairman David Lenigas said in a statement.
In an earlier announcement, Lenigas said the long-awaited deal provided “real potential to radically change the long-term plans for Hellyer”.
He added that there was scope to re-open the underground mining operations, adding much higher-grade ore feed to the existing plant in coming years.
“Some of the drill intercepts near the Hellyer orebody are regarded as 'bonanza' grades anywhere in the world and NQ is planning to commence drilling a number of the high priority targets as soon as possible,” he explained.
The company is led by a team of experienced mining and mining finance industry professionals, including chief executive Walter Doyle, the venture capitalist responsible for the resurrection of Sirius Minerals PLC (LON:SXX).
The principal asset is the Hellyer mine in Tasmania. This was commissioned at the turn of 2018/2019, which generated revenues of A$54mln last year.