NQ Minerals received a shock when they struck a literally struck gold at Beaconsfield, except it was not in the mine, it was in the build-up of sediment found at the site.
The red sludge had accumulated at the site over a number of years which NQ tested for gold to see if anything remained within the sediment.
NQ Minerals executive director Roger Jackson said the remarkable find was a "great outcome and certainly a win win" for the business.
"We tested the material purely on a speculative basis and so we were pleasantly surprised by the results," he said.
Last year, Australian based NQ Minerals acquired the Beaconsfield mine for their portfolio, which includes the Hellyer gold mine, which furthered their concept of rehabilitating old mines for tailings.
The process is known as green mining and it involves rehabilitating disused mines to essentially procure the tailings which were left by the previous operation. Due to advancements in processing methods, these tailings could have valuable minerals.
"Green mining focusses on reclaiming minerals from old mining operations and rehabilitating the site, at the same time using 100% electricity generated using renewable energy as is the case in Tasmania," Mr Jackson said.
The news is a boost for the region which is expected to greatly benefit from the mine reopening. NQ Minerals has committed to employing local contractors and employees where possible at the mine .
West Tamar Council mayor Christina Holmdahl said the the discovery, along with NQ Minerals plans to open the underground mine in coming years, was a great boost for the community.
"We were very pleased to hear that the reopening of the Beaconsfield mine looks to be a great success with the discovery of more gold just outside of Beaconsfield making it a profitable venture for NQ Minerals," she said.
"NQ Minerals have already started employing people from the local community which brings confidence that further positions will also be filled locally. The creation of more jobs will in turn improve the local economy, cementing Beaconsfield and surrounding areas as a desirable place to live and work."