A new mineral resource report has found the lower section of Beaconsfield Gold Mine has an estimated 483,000 ounces of gold still waiting to be mined, which is worth more than $1.26 billion.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The 1.454 million tonnes is graded at 10.3 grams of gold per tonne of ore, resulting in an estimated 483,000 ounces of gold available from 415 metres to 1500 metres.
Based on Thursday's price of gold per ounce it would be worth more than $1.26 billion.
NQ Minerals chairperson David Lenigas said the ore continued past the mine's 1500 metre depth, therefore there was significant potential to increase the amount of available gold through further drilling.
"Beaconsfield is a rich gold deposit with genuine scale," he said.
"The publishing of this new resource statement clearly demonstrates the huge underlying potential at Beaconsfield and highlights the immense scope for ongoing growth in the gold inventory as NQ moves this mine forward back in to production."
Mr Lenigas said the estimate also did not take into account the potential of the upper section of the old mine used from 1877 to 1914, from the surface to 415 vertical metres.
"The upper section has even more potential," he said.
The potential to increase the mine's depth proves promising with one 2.5 metre drill below 1500 metres estimating 32.4 grams of gold per tonne.
The mine's tailings dam, which is used to store byproducts after separating the ore from the uneconomic gangue, is also thought to potentially hold an additional 67,000 ounces of gold.
IN OTHER NEWS:
The company estimates the mine could create 50 jobs in the early stages, rising to over 100 in the long-term.
It's expected the mine's roster could include well above 90 per cent local workers. Mr Lenigas said the project would be great for Tasmanian jobs with the available skilled-work force in the sector.
He said the West Tamar Council mayor Christina Holmdahl and the state government had been informed of the mine's estimates.
"We believe that Beaconsfield offers a genuine opportunity for the company to rapidly develop a high-quality gold asset not only for its shareholders but for Tasmania in general," he said.
"We are almost complete with our due diligence process on this asset and are focused on bringing this famous and iconic Tasmanian gold mine back into production."
Mr Lenigas said he could not provide a specific date but he would be disappointed if the mine was not nearing operation by the end of the year.
The mine's new Independent JORC 2012 Mineral Resource Statement was made using a three grams per tonne cut-off.
The price of gold per gram in Australia was about $84 on Thursday. Compared to the highest price per gram in 2012 at about $55.
Mr Lenigas said the six grams per tonne cut-off for estimates was dropped to three grams because the price of gold had increased significantly since 2012.
NQ Minerals purchased the Beaconsfield Gold Mine for $2 million on February 21.
The London-listed, Australia-based company's estimate statement was part of its strategic review of the mine's infrastructure and geology, with a view to restart mining subject to departmental approval.
Sign up to one of our many newsletters:
Isobel Cootes
Sports reporter at The Canberra Times. A Novocastrian with a passion for football (or soccer as they call it in the capital) via The Examiner and The Port Lincoln Times.
Sports reporter at The Canberra Times. A Novocastrian with a passion for football (or soccer as they call it in the capital) via The Examiner and The Port Lincoln Times.
