MT CHALMERS PROJECT
High grade historic copper-gold mine with a large and growing resource and significant upside potential from numerous known Volcanic Hosted Massive Sulphide (VHMS) prospects not currently in Resource.
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.
FOURTH RESOURCE UPGRADE
In just 18 month, QMines has delivered its third and fourth resources 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.
NEAR SURFACE 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.
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.