The following sections are AI-generated from the announcement content and are provided as supplementary reader aids only.
What This Announcement Means
QMines has started drilling beneath the flooded Mt Chalmers open pit for the very first time. Because the old pit filled with water over the decades, it was physically impossible to drill into the ground beneath it from the pit walls. The company has solved this by placing a diamond drill rig on a purpose-built floating platform sitting on the pit lake — a creative engineering solution that now opens up a previously untested zone of copper-gold mineralisation.
This drilling program has two goals that could both add value for shareholders. First, it is testing whether the ore deposit continues deeper underground beyond where the old mine stopped — if it does, the total Mineral Resource could grow. Second, it is replacing old-style percussion drilling data (which doesn’t meet today’s standards) with modern diamond core drilling, which could allow existing Inferred Resources to be reclassified as higher-confidence Ore Reserves that can be included in the company’s Definitive Feasibility Study.
Once this program wraps up, the drill rig will move to the nearby Woods Shaft deposit for another round of resource growth drilling. QMines is describing the next few months as a “catalyst-rich period” with multiple potential news events — drill results, resource upgrades, and DFS progress — that could each be meaningful for the share price.
Key Takeaways
- First-ever diamond drilling beneath the flooded Mt Chalmers open pit has commenced using a purpose-built floating drilling platform.
- The program targets both new resource growth (testing depth extensions) and reserve conversion (upgrading Inferred Resources to Ore Reserves for the DFS).
- Mt Chalmers currently has a total Mineral Resource of 11.3Mt at 0.75% Cu and 0.42 g/t Au, with an Ore Reserve of 9.6Mt at 0.65% Cu and 0.48 g/t Au.
- After completing the pit lake drilling, the rig will move to the Woods Shaft deposit as part of the broader 10,000m drilling campaign.
- United Drilling Services is operating the floating drill platform; first core has already been recovered.
Key Facts
Highlights
- Resource & reserve growth drilling has commenced beneath the historic Mt Chalmers open pit.
- First-ever drilling beneath the flooded pit will test extensions to the deposit, which remains open along strike and at depth.
- Program aims to convert existing Inferred Resources into Ore Reserves while also targeting new resource growth.
- First core has already been recovered, with a strong pipeline of drilling news flow expected over the coming months.
- With resource growth drilling now underway beneath the Mt Chalmers pit, metallurgical and geotechnical drilling continuing, and the Company’s largest-ever drilling program at Woods Shaft about to commence, QMines is entering a catalyst-rich period with multiple opportunities to create shareholder value over the coming months.
Overview
QMines Limited (ASX:QML) (QMines or Company) is pleased to announce the commencement of diamond drilling beneath the historic Mt Chalmers open pit, targeting both resource growth and reserve growth at the Company’s flagship copper-gold project. The drilling program commenced yesterday with the first drill core already recovered.
The flooded historic open pits have prevented drilling beneath the existing mine from conventional land-based drill positions for decades. By utilising a purpose-built floating drilling platform, QMines is now able to access and test this important mineralised corridor for the first time.
The program forms part of the Company’s Definitive Feasibility Study (DFS) and recently announced 10,000m drilling campaign currently underway at Mt Chalmers. The pontoon drilling program has been specifically designed to both test the down-plunge extensions of the Mt Chalmers deposit beneath the existing open pits while also improving confidence in the existing Mineral Resource located beneath the pit floor.
Management Comment
Commenting on the program, QMines Executive Chairman Andrew Sparke said:
“This is one of the most exciting drilling programs we’ve undertaken at Mt Chalmers because it has the potential to create value in two ways.”
“Firstly, we’re drilling beneath the existing pit where the deposit remains open at depth, providing an opportunity to grow the Mineral Resource. Secondly, we’re upgrading confidence in existing mineralisation beneath the pit, creating the opportunity to convert additional resources into Ore Reserves that can support the Definitive Feasibility Study and potential for a larger or longer mine plan.”
“This mineralisation has effectively been out of reach due to the flooded historic pits. The floating drilling platform now gives us access to an area that has never been systematically tested using modern diamond drilling techniques.”
“I’d also like to congratulate United Drilling Services on an outstanding job. Mobilising and operating a diamond drill rig from a floating platform is no easy task and their team has executed the project safely and professionally. First core has already been recovered and we’re looking forward to seeing what lies beneath the historic mine workings.”
“Importantly, this is only the beginning. The Company is already making plans to mobalise another drilling rig to Woods Shaft where we’ll be targeting additional resource growth as part of our broader 10,000 metre drilling campaign. We believe the coming months will deliver a strong pipeline of news flow and several exciting catalysts for our shareholders”.
Targeting Resource & Reserve Growth
The drilling program has been designed to create value in two important ways. Firstly, the program will test the depth extensions of the Mt Chalmers copper-gold deposit beneath the historic open pit. Previous drilling indicates the mineralised system remains open below the existing mine workings and this program represents the first systematic attempt to evaluate the continuation of mineralisation beneath the flooded pits using modern diamond drilling techniques. Success has the potential to increase the Company’s Mineral Resource and extend the future mine plan.
Secondly, the program is designed to improve confidence in the existing Inferred Mineral Resource located beneath the pit. Historically, much of this material was drilled using percussion drilling techniques. While appropriate for the standards of the day, percussion drilling can result in sample smearing within the drill hole and does not provide the geological confidence achievable through modern diamond core drilling.
In addition, much of the historic grade control drilling completed during mining operations does not satisfy the quality assurance and quality control (QAQC) standards required under the current JORC Code. Consequently, this material has remained classified as an Inferred Mineral Resource and cannot currently be converted into Ore Reserves supporting the Definitive Feasibility Study.
By replacing this historic drilling with modern diamond core drilling and contemporary QAQC procedures, QMines aims to upgrade the confidence of the existing Mineral Resource and convert additional material into the Ore Reserve. This has the potential to increase the mineable inventory available to support the Definitive Feasibility Study and future mining operations.
Innovative Drilling Solution
Drilling beneath the flooded pit presents unique technical challenges due to the large body of water occupying the historic open pit. Traditional drilling from the pit walls cannot adequately access the mineralisation beneath the centre of the pit.
To overcome this challenge, QMines engaged United Drilling Services to design, mobilise and operate a purpose-built floating drilling platform capable of safely undertaking diamond drilling from within the pit lake.
The successful commencement of drilling is an important milestone for the Definitive Feasibility Study and demonstrates the Company’s commitment to applying innovative solutions to unlock additional value at Mt Chalmers.
QMines would like to acknowledge the outstanding work undertaken by United Drilling Services, whose professionalism, planning and execution have enabled this technically challenging program to commence safely and efficiently.
Strong News Flow Ahead
The pontoon drilling program represents the next stage of QMines’ recently announced 10,000m drilling campaign.
Upon completion of drilling beneath the historic open pit, the drill rig will transition directly to the Woods Shaft deposit where the Company will undertake a major resource growth drilling program targeting extensions to known copper-gold mineralisation and expansion of the broader Mt Chalmers mine plan.
Together, these programs are designed to increase both the size and confidence of the Mt Chalmers Mineral Resource while supporting completion of the Definitive Feasibility Study and enhancing the long-term value of the project.
Resource & Reserve Estimates
Ore Reserve – Mt Chalmers1
| Deposit | Reserve Category | Tonnes (Mt) | Cut Off (% Cu) | Cu (%) | Au (g/t) | Zn (%) | Ag (g/t) | S (%) |
|---|---|---|---|---|---|---|---|---|
| Mt Chalmers | Proved | 5.1 | 0.3% | 0.72 | 0.58 | 0.25 | 4.70 | 5.80 |
| Mt Chalmers | Probable | 4.5 | 0.3% | 0.57 | 0.37 | 0.29 | 5.50 | 3.60 |
| Total | 9.6 | 0.3% | 0.65 | 0.48 | 0.27 | 5.20 | 4.30 |
Mineral Resource Estimate – Mt Chalmers1
| Deposit | Resource Category | Tonnes (Mt) | Cut Off (% Cu) | Cu (%) | Au (g/t) | Zn (%) | Ag (g/t) | S (%) |
|---|---|---|---|---|---|---|---|---|
| Mt Chalmers | Measured | 4.2 | 0.3% | 0.89 | 0.69 | 0.23 | 4.97 | 5.37 |
| Mt Chalmers | Indicated | 5.8 | 0.3% | 0.69 | 0.28 | 0.19 | 3.99 | 3.77 |
| Mt Chalmers | Inferred | 1.3 | 0.3% | 0.60 | 0.19 | 0.27 | 5.41 | 2.02 |
| Total | 11.3 | 0.3% | 0.75 | 0.42 | 0.23 | 4.60 | 4.30 |
Mineral Resource Estimate – Develin Creek2
| Deposit | Resource Category | Tonnes (Mt) | Cut Off (% Cu) | Cu (%) | Zn (%) | Au (g/t) | Ag (g/t) | Not in Mine Plan |
|---|---|---|---|---|---|---|---|---|
| Develin Creek | Indicated | 4.22 | 0.3% | 0.98 | 1.08 | 0.16 | 6.0 | |
| Develin Creek | Inferred | 0.48 | 0.3% | 0.61 | 0.41 | 0.10 | 3.5 | |
| Total | 4.70 | 0.3% | 0.94 | 1.00 | 0.15 | 5.7 |
Mineral Resource Estimate – Woods Shaft3
| Deposit | Resource Category | Tonnes (Mt) | Cut Off (% Cu) | Cu (%) | Au (g/t) | Zn (%) | Ag (g/t) | Not in Mine Plan |
|---|---|---|---|---|---|---|---|---|
| Woods Shaft | Inferred | 0.54 | 0.3% | 0.50 | 0.95 | – | – | |
| Total | 0.54 | 0.3% | 0.50 | 0.95 | – | – |
Mineral Resource Estimate – Mt Mackenzie4
| Deposit5 | Resource Category | Tonnes (Mt) | Cut Off (% Cu) | Cu (%) | Au (g/t) * | Zn (%) | Ag (g/t) | Not in Mine Plan |
|---|---|---|---|---|---|---|---|---|
| Mt Mackenzie | Indicated | 2.3 | 0.5-0.7% | – | 1.38 | – | 9.6 | |
| Mt Mackenzie | Inferred | 1.1 | 0.5-0.7% | – | 1.45 | – | 5.8 | |
| Total | 3.4 | 0.5-0.7% | – | 1.40 | – | 8.4 |
*cut-off grade: 0.35 g/t Au for oxide, 0.55 g/t Au for primary.
- ASX Announcement – Mt Chalmers PFS Supports Viable Copper & Gold Mine, 30 April 2024. Rounding errors may occur.
- ASX Announcement – Develin Creek Resource Upgrade Unlocks Expansion Planning, 23 February 2026. Rounding errors may occur.
- ASX Announcement – Maiden Woods Shaft Resource, 22 November 2022. Rounding errors may occur.
- ASX Announcement – Acquisition of the Mount Mackenzie Gold & Silver Project, 16 April 2025. Rounding errors may occur.
Regulatory Statements
Forward-Looking Statements
This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning QMines Limited planned exploration program and other statements that are not historical facts. When used in this document, the words such as “could,” “plan,” “expect,” “intend,” “may”, “potential,” “should,” and similar expressions are forward-looking statements. Although QMines believes that its expectations reflected in these forward- looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that further exploration will result in the estimation of a Mineral Resource.
Competent Person Statements
Ore Reserve Estimate
The information in this report relating to the Open Pit Optimisation and the Ore Reserve Estimate is based on work compiled by Gary McCrae, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr McCrae is a full time employee of Minecomp Pty Ltd and has sufficient experience relevant to the style of mineralisation, the type of deposit under consideration and the work undertaken to qualify as a Competent Person under the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr McCrae has consented to the inclusion of this information in the form and context in which it appears.
Mineral Resource Estimate
The information in this report relating to Mineral Resource estimation is based on work completed by Stephen Hyland, a Competent Person and Fellow of the Australasian Institute of Mining and Metallurgy. Mr Hyland is Principal Consultant Geologist with Hyland Geological and Mining Consultants and has the required experience relevant to the style of mineralisation, the type of deposit under consideration and the work undertaken to qualify as a Competent Person under the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hyland is also a Qualified Person under the rules of the Canadian Instrument NI 43 101. Mr Hyland has consented to the inclusion of this information in the form and context in which it appears.
Exploration Results and Exploration Targets
The information in this document relating to Exploration Results and Exploration Targets has been compiled under the supervision of Tom Bartschi, a Member of the Australian Institute of Geoscientists. Mr Bartschi has sufficient experience relevant to the style of mineralisation, the type of deposit under consideration and the activities undertaken to qualify as a Competent Person under the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bartschi has consented to the inclusion of this information in the form and context in which it appears.
Compliance Statement
With reference to previously reported Exploration results and mineral resources, the Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parametres underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.
About QMines
QMines Limited (ASX:QML) is a Queensland focused copper and gold development Company. The Company owns 100% of the Mt Chalmers (copper-gold) and Develin Creek (copper-zinc) deposits, located within 90km of Rockhampton in Queensland. Mt Chalmers is a high-grade historic mine that produced 1.2Mt @ 2.0% Cu, 3.6g/t Au and 19g/t Ag between 1898-1982.
Following several resource updates, the Mt Chalmers, Develin Creek and Mt Mackenzie projects now have Reserves of 9.6Mt and combined Resources of approximately 20Mt.1 QMines’ objective is to make new discoveries, commercialise existing deposits and transition the Company towards sustainable copper production.
1 ASX Announcement – Develin Creek Resource Upgrade. 23 February 2026
Projects & Ownership
| Mt Chalmers | 100% |
| Develin Creek | 100% |
| Mt Mackenzie | 100% |
QMines Limited ACN 643 312 104
Directors & Management
- Andrew Sparke
Executive Chairman - Peter Caristo
Executive Director (Technical) - Thomas Bartschi
Exploration Manager & Site Senior Executive (Competent Person) - Elissa Hansen
Non-Executive Director & Company Secretary - Richard Wittig
Development Manager
Contacts
- Address
Suite J, 34 Suakin Drive, Mosman NSW 2088 - Phone
+ 61 (2) 8915 6241 - Email
[email protected] - Website
qmines.com.au - Peter Nesvada
Investor Relations
[email protected] - Andrew Sparke
Executive Chairman
[email protected]
Frequently Asked Questions
The following Q&A is AI-generated from the announcement content and is provided as a supplementary reader aid only.
Why has drilling beneath the Mt Chalmers pit never been done before?
The flooded historic open pits have prevented drilling beneath the existing mine from conventional land-based drill positions for decades. Traditional drilling from the pit walls cannot adequately access the mineralisation beneath the centre of the pit.
How is QMines drilling beneath a flooded pit?
QMines engaged United Drilling Services to design, mobilise and operate a purpose-built floating drilling platform capable of safely undertaking diamond drilling from within the pit lake.
What are the two goals of this drilling program?
Firstly, the program will test the depth extensions of the Mt Chalmers copper-gold deposit beneath the historic open pit, with success having the potential to increase the Company’s Mineral Resource and extend the future mine plan. Secondly, the program is designed to improve confidence in the existing Inferred Mineral Resource located beneath the pit, aiming to convert additional material into the Ore Reserve to support the Definitive Feasibility Study.
Why can’t the existing Inferred Resources be converted to Ore Reserves already?
Much of the historic grade control drilling completed during mining operations does not satisfy the quality assurance and quality control (QAQC) standards required under the current JORC Code. Consequently, this material has remained classified as an Inferred Mineral Resource and cannot currently be converted into Ore Reserves supporting the Definitive Feasibility Study.
What is the current Mt Chalmers Ore Reserve and Mineral Resource?
The Mt Chalmers Ore Reserve totals 9.6Mt at a cut-off of 0.3% Cu, grading 0.65% Cu, 0.48 g/t Au, 0.27% Zn, 5.20 g/t Ag and 4.30% S. The Mineral Resource totals 11.3Mt at 0.75% Cu, 0.42 g/t Au, 0.23% Zn, 4.60 g/t Ag and 4.30% S.
What happens after the pit lake drilling is complete?
Upon completion of drilling beneath the historic open pit, the drill rig will transition directly to the Woods Shaft deposit where the Company will undertake a major resource growth drilling program targeting extensions to known copper-gold mineralisation and expansion of the broader Mt Chalmers mine plan.