Mt Chalmers – QMines Limited (ASX:QML)

Mt Chalmers
Project

High-grade historic copper-gold mine transitioning to development

COMMODITY

Copper

LOCATION

Queensland

PHASE

Development

MINE TYPE

Open Pit

Mt Chalmers
Overview

QMines’s (ASX:QML) flagship project, Mount Chalmers, is located 17km North East of Rockhampton. The Company owns 100% of the project which includes the high-grade historic Mt Chalmers copper and gold mine. Mt Chalmers operated as an open pit and underground operation between 1898-1982. The project comprises 316km2 of tenure that includes a number of known VHMS deposits not currently in Resource demonstrating significant growth potential.

Pre-Feasibility Study
Highlights

Million Tonnes

Maiden Ore Reserve estimate total (Proved and Probable)

$ 100

Million

Net Present Value (NPV8%) post tax

Years

Life of Mine (LOM) estimate delivering mine plan production target

1Mtpa

Supports stand-alone 1Mtpa process plant

Contained Metal

65,000t copper
160,000oz gold
30,600t zinc
1.8Moz silver
583,000t pyrite

Five Resource Upgrades

In under 3 years, QMines has delivered its fifth resource upgrade at Mt Chalmers. The Measured, Indicated and Inferred Resources now stand at 11.86Mt @ 1.22% contained copper equivalent.

Importantly, 84% of these Resources now fall in the Measured and Indicated JORC categories.

Shallow Mineralisation

Mineralisation at Mt Chalmers consists of two broad types. A massive sulphide which contains copper, gold, silver, lead and zinc mineralisation and a stringer zone which contains mostly copper and gold.

The mineralisation is near surface, relatively flat lying and remains open in a number of directions.

Large Regional Analogues

There are a number of large deposits located in the region. They include Mount Morgan which is a historic VHMS deposit that produced 8,243,489oz of gold and 400,000t copper.

Further deposits include Cracow which has produced 1,400,000oz gold and Mount Rawdon which has produced 1,800,00oz gold.

Significant Growth Potential

Mt Chalmers already hosts four known deposits, two of which (Mt Chalmers and Woods Shaft) are currently in resource.

Significant upside remains as QMines seeks to convert two other deposits into resource (Botos and Mount Warminster) and by making further discoveries.

Moving Towards Development

QMines growth strategy involves rapidly transitioning the Mt Chalmers project towards development.

As a shallow high-grade deposit that is close to the coast and significant infrastructure, QMines believe that substantial value may be unlocked by transitioning towards production.

Low Capital Advantage

With significant sunk capital associated with historic mining, the deposits proximity to the coast and the town of Rockhampton and significant regional infrastructure, QMines believe that Mt Chalmers may provide potential for a low cost development option.

This provides potential for a low capex advantage over similar potential mining operations.

Other Projects

Australia´s next Copper and Gold producer

Develin Creek

Two high-grade copper-zinc deposits with significant upside potential

Silverwood

Structurally complex, Silverwood, has numerous thick base metal intersections warranting further exploration.

Others Creek

Mt ChalmersProject