Toronto-based EnviroGold Global has signed an MoU with Hellyer Gold Mines to reprocess tailings from the Hellyer gold mine in Tasmania, Australia.
EnviroGold will embark on a multistage reprocessing plan, using its mineral processing technology to the Hellyer tailings. The Hellyer mine is operational.
The technology is expected to increase metal recovery rates for gold, silver, zinc, lead, and copper in the gold mine's tailings facility.
Metal production is expected to begin in the December quarter of 2022, with initial processing levels at up to 500 tonnes per day. In 2023, processing would be scaled to around 3,500 tpd.
The Hellyer gold tailings resource estimates measured and indicated resources of 6.37 million tonnes and 1.21 million tonnes of inferred resources with gross metal grades of 2.60 g/t of gold, 94 g/t of silver, 2.33% zinc, 3.01% lead and 0.19% copper.
As part of the agreement, EnviroGold is entitled to 50% of the pre-tax returns from the operations of up to US$24 million per year. After this point, EnviroGold is entitled to 65% of pre-tax cashflows.
The Hellyer tailings project is "an outstanding opportunity to deliver positive environmental outcomes while creating substantial economic returns," said EnviroGold Global chief executive Mark Thorpe.