NQ Minerals, which is recovering minerals by reprocessing material from Hellyer tailings storages, said there was real potential for underground mining to resume.

NQ signed a deal to buy all mining and exploration rights to the 1695 hectare main Hellyer mining lease and the 46 square kilometre Mt Block permit from Bass Metals Limited for $360,000.

The Mt Block area surrounds the Hellyer lease.

"This long-awaited deal provides real potential to radically change the long-term plans for Hellyer and the perception of NQ in the market," NQ chairman David Lenigas said.

"There is real potential to reopen the underground mining operations, adding much higher-grade ore feed to the plant over the coming years.

"Some of the drill intercepts near the Hellyer ore body 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."

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Bass Metals developed the Fossey Mine in the area, west of Cradle Mountain.

Fossey closed in 2012.

"The last operator of the mine discovered three significant zones of base metal mineralisation within 200 metres of the large Hellyer ore body at Fossey, Fossey East and Mackay and confirmed the significant potential for new discoveries on the leases," Mr Lenigas said.

Underground mining was seen as having potential to extend NQ's Hellyer operations well past the existing 10-year plan.

The deal would give NQ extra lead, zinc, silver and gold resources.

NQ started its tailings retreatment program at Hellyer last year.

Bass would also receive bonds and other refunds totalling about $100,000 related to the released tenements.

It said the funds from the deal would be used for ongoing costs related to its Que River assets in Tasmania.

Bass has focused on graphite mining in Madagascar in recent years.