A new North-West minerals project is on target to generate cash by the end of the year.
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London-listed NQ Minerals expects the first sales of concentrates from its tailings recovery operation at the Hellyer Gold Mine soon.
“ … the second half of 2018 will be transformational for NQ Minerals,” chairman Brian Stockbridge said as the company announced its half-yearly results for the period ending on June 30.
“We are looking forward to the sales of our first concentrate as we move from a development to a revenue generating company.
“With the refurbishment near complete and operational commencement at Hellyer, it is an exciting time for the company.”
NQ Minerals said the tailings project had 9.5 million tonnes of pyrite, gold, silver, lead and zinc.
“The necessary plant and equipment exists on site, including a large, pre-existing mill facility and full supporting infrastructure, including a direct rail line to (the Burnie) port, with port concentrate housing, handling and loading facilities,” it said.
“The refurbishment of the existing operating facilities to extract and treat the large tailings deposit and produce three marketable concentrates of lead, zinc, gold-silver-pyrite was under way during the six months ended June 30, 2018.”
It said operations had since started.
The project is expected to create 55 direct jobs and have a 10-year life.
There is potential for a longer life and new mining operations involving other deposits in the area.
Resources Minister Guy Barnett officially opened the Hellyer project in July.
NQ Minerals secured an extra $US10 million for development and operation of the Hellyer project.
It involved a silver purchase agreement with a US-based private equity firm.
Hellyer is west of Cradle Mountain.
NQ Minerals also has two exploration projects in North Queensland.
It said the Ukalunda and Square Post projects were in prospective mining districts which were part of the Charters Towers gold province, which had produced more than 20 million ounces of gold.
NQ recorded a loss of about $18 million for the half.