Surging gold prices have NQ Minerals fired up to resume gold mining at Beaconsfield as soon as possible.
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Gold is seen by many investors as a defensive asset during sharemarket crashes and its price has charged up in recent days as the coronavirus-driven bad news kept coming.
London-listed NQ announced in February it had entered agreements to buy the Beaconsfield Gold Mine, which had produced nearly 2 million ounces of gold by the time it closed in 2012.
In a new corporate presentation, NQ said Beaconsfield - which was the scene of a famous rescue in 2006 - was one of Australia's richest gold mines.
It said it had significant gold resource potential "in line with increased gold price".
NQ said it had engaged experienced Tasmanian specialist mining consultants to help it prepare a due diligence study into mine reopening "to further assess the opportunities at Beaconsfield".
The presentation said recalculation of gold resources was under way.
The mine reopening plan involved recommissioning the processing plant, costing and developing a 3 kilometre decline from the surface to 400 metres below the surface and starting gold production as soon as possible.
NQ said the decline was the key to reopening the mine and providing for low-cost operations for many years.
The company is aiming for early cashflow from recommissioning the plant by retreating surface stockpiles.
NQ reprocessses tailings from the former Hellyer Mine operations in Tasmania's North-West, and has hopes of starting actual mining in the area.
"In these challenging times, I'm pleased to advise that all of NQ's operations in Tasmania continue as normal," chairman David Lenigas said..
"The work on assessing the re-opening of Beaconsfield Gold Mine is progressing to plan with local engineering consulting groups who have extensive first-hand experience at Beaconsfield."
NQ said the Beaconsfield plant had a proven track record and there was an experienced local workforce.