Canadian green technology group EnviroGold Global has signed a memorandum of understanding (MoU) with Hellyer Gold Mines to reprocess the latter’s tailings at the Hellyer gold operation in Tasmania, Australia.
Under the terms of the deal, EnviroGold will perform a multi-stage reprocessing programme at the active operation, adding its metallurgical solution to drive a significant increase in gold, silver, zinc, lead and copper recovery rates.
Its initial focus will be the Hellyer TSF, though it will later reprocess additional tailings on the mine site.
For its efforts, EnviroGold will receive 50% of pre-tax cashflows up to US$24 million annually, and 65% thereafter.
Metal production is expected to begin in the final quarter of 2022, and initial processing will be up to 500 tonnes daily, which will ramp up to about 3,5000 tonnes per day the following year.
"The agreement with HGM is an important strategic milestone in the achievement of our corporate growth strategy and an outstanding opportunity to deliver positive environmental outcomes while creating substantial economic returns for the two companies, our shareholders and community stakeholders,” CEO Mark Thorpe said.
Hellyer’s TSF tailings have been extensively studied by EnviroGold Global and HGM; a historical JORC mineral resource estimate completed in November 2020 for NQ Minerals, the parent company of HGM reported an estimated 6.37 million tonnes of measured and indicated mineral resources and 1.21 Mt of inferred mineral resources with gross metal grades of 2.60 g/t Au, 94 g/t Ag, 2.33% Zn, 3.01% Pb and 0.19% Cu.
Source: EnviroGold Global