Studies that might lead to the revival of Beaconsfield as a mining town in partnership with a North-West operation are under way.
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North-West tailings reprocessor NQ Minerals and Tasmania Energy Metals - which has a nickel-cobalt deposit at Barnes Hill, near Beaconsfield - are looking into the feasibility of developing an integrated facility.
It would process pyrite/precious metals concentrate produced from tailings at NQ's Hellyer project to extract further precious and base metals.
"The group has commenced work on the environmental, metallurgy and technical reports to evaluate this initiative," NQ Minerals said in its interim results report for the six months to June 20.
"The prospects at TEM appear promising and we will continue to work with them to explore value creation opportunities."
NQ has invested in Tasmania Energy Metals and has an option to acquire it outright for $10 million.
Beaconsfield, north-west of Launceston, is best known in the mining sector for its now closed gold mine.
The mine became famous worldwide because of the rescue of miners Brant Webb and Todd Russell in 2006 following about two weeks trapped underground by a rock fall.
Another miner, Larry Knight, was killed.
In August, NQ Minerals said if the integrated processing facility went ahead, it would use sulphuric acid, which was the main byproduct from treatment of the pyrite/precious metals concentrate NQ produced from reprocessing tailings from the old Hellyer Mine, west of Cradle Mountain.
The sulphuric acid would be used to produce salts from the Barnes Hill nickel and cobalt for sale into the electric vehicle battery market.
NQ said sulphuric acid was the biggest single cost in treatment of lateritic nickel-cobalt deposits.
The company announced a gross profit for the half-year of $6.19 million, built on its first revenue from Hellyer ($25.73 million).
However, selling and distribution expenses, administrative expenses and finance costs pushed it to a comprehensive loss of $32.54 million for the half-year.
"Hellyer has proven to be challenging during its inaugural six months of operations," NQ said in the results report.
"However, the improvements realised in quarter three, 2019, have been favourable and continue to trend in a positive direction.
"These improvements will further provide an opportunity for the company to restructure its current debt facilities with a view of improving the financial position."
The company owed $119.3 million as at June 30.
