BCD Resources non-executive chairman Clive Carroll said the processing, part of a joint venture with Queensland miner Malachite's Lorena mine, would start by the third quarter of next year.

``Which will mean that not only are we saving 30-odd jobs now  but creating 30 to 40 more jobs probably by the fourth quarter of next year,'' Mr Carroll said.

The move is part of a new direction taken by the company's re-formed executive board and shareholders.

``We believe that Beaconsfield does have life after the Tasmania Mine,'' Mr Carroll said.

The company has also ceased its controversial move to pump tailings into the underground mine.

Mr Carroll said the halt was not due to environmental concern.

He said shareholders had been concerned that putting tailings back into  the mine would make any future mining uneconomic.

Mr Carroll said reopening underground operations at the mine still remained an option, although it hinged on a rise of the price of gold.

``The estimate that was given was somewhere around an Australian dollar price in excess of $3000 an ounce to render the remaining underground resources economic,'' he said.

 There would also be a capital cost of up to $40 million.

BCD Resources will hold its annual meeting at the Beaconsfield community hall at 2pm on Tuesday.