Hellyer – Tasmania

Hellyer Project

nq minerals

NQ Minerals Plc ("NQ Minerals" or “the Company”) (NEX: NQMI) (OTCQB: NQMLF) has entered into an agreement to acquire all of the issued and outstanding shares of Keen Pacific Limited (“Keen”), along with its wholly-owned subsidiaries Ivy Resources Pty Ltd and Hellyer Gold Mines Pty Ltd (the "Contract"). The acquisition would see NQ Minerals wholly own the prospective Hellyer Gold Mine in Tasmania, Australia and is in line with the Company’s strategy of becoming a near-term revenue generating gold and base metal production company.

NQ Minerals’ acquisition of the Hellyer Gold Mine allows the opportunity to fully process and bring the tailings to account. Held within four separate areas, the tailings total 11.24 mt, and comprise a JORC compliant resource estimated at 9.5 mt which is host to Gold at 2.61 g/t Au for 796,000 oz Au, Silver at 104 g/t Ag for 32 m oz Ag, Lead at 3.03% Pb for 287,800 tonnes and Zinc at 2.5% Zn for 237,900 tonnes. In addition to these tailings, the Hellyer Gold Mine assets include a large pre-existing mill facility and full supporting infrastructure, including a direct rail line to port. It also includes a fully permitted Consolidated Mining Lease CML 103M – 1987.

NQ Minerals Chairman Brian Stockbridge said, “The Hellyer Gold Mine will be a flagship project for NQ Minerals and is expected to see us transform into a near-term producer within a 12 month time-frame. First work will involve the refurbishment of the existing operating facilities in order to extract and treat the large high-grade tailings deposit on site and produce three marketable concentrates (lead, zinc, gold/silver/pyrite). The project is expected to be producing within a short time period and offers the potential for attractive returns with a quick payback of capital. The Board believes Hellyer is a world-class, company-maker project that blends well with our North Queensland assets and our long term goal to become a significant gold and base metal producer in Australia.”

http://nqminerals.com/wp-content/uploads/2017/04/IMG_0857.jpg
http://nqminerals.com/wp-content/uploads/2017/04/IMG_0859.jpg

Hellyer Mine - NQ Minerals

360 Virtual Tour

Highlights:

  • Permitted project with life of mine revenues exceeding AU$1.3 bn (US$1.033bn)
  • Post Tax IRR 130%
  • Post Tax NPV AU$276 m (US$210m)
  • 56% gross margin
  • Low start-up capex requirement – AU$20 m
  • 10-year mine life
  • Existing fully covered, fully operable 1.6mtpa fully automated flotation plant
  • Undercover concentrate loading station
  • Existing railway from plant to port
  • Existing port concentrate housing, handling and loading facilities
  • Existing tailings dredge
  • Skilled available workforce
  • Short start up time period

* Note: Highlights are based on most recent management evaluation of the project’s potential.

Benefits of the Transaction for NQ Minerals Shareholders:

  • Adds a JORC compliant resource to NQ Minerals’ portfolio of assets in a premier geopolitically stable mining jurisdiction;
  • Enhances NQ Minerals' development and production pipeline with the potential to commence production at the Hellyer property within 12 months;
  • Provides near term cash flow; and
  • Aligns well with the experienced and disciplined management team that has been formed to optimise the project outcomes.

Hellyer Mine

video