London-listed NQ Minerals has completed commissioning of the Hellyer processing plant, in Tasmania, Australia, with production during the December quarter reaching 3,991 t of lead, 1,537 t of zinc, and 4,291 t of pyrite.
This output realised approximately £3.2 million ($4.1 million) in sales, according to NQ Minerals.
“The company is now consistently producing all three concentrates with sales occurring on a weekly basis,” NQ Minerals said.
Held within four separate areas, the Hellyer tailings total a JORC-compliant resource of 9.5 Mt, hosting gold at 2.61 g/t Au for 796,000 oz, silver at 104 g/t Ag for 32 Moz Ag, lead at 3.03% Pb for 287,800 t and zinc at 2.5% Zn for 237,900 t. In addition to these tailings, the Hellyer mine assets include a large pre-existing mill facility and full supporting infrastructure, including a direct rail line to port.
NQ Minerals previously agreed two separate offtake agreements with Traxys for Hellyer’s products, where the trading company will receive all of the precious metals and lead and zinc produced over the first five years.
Brian Stockbridge, Chairman of NQ Minerals, said: “With commissioning substantially complete, NQ is now a producer. Having completed the acquisition and refurbishment of Hellyer over the prior two years, the culmination of management’s efforts will make 2019 a transformational year for the company. With the change in status to a producer, we believe there is substantial potential to unlock shareholder value.”