QMines achieves key milestone with Mount Chalmers mining lease application
QMines (ASX: QML) continues to make strong progress in developing its Mount Chalmers copper and gold project in Queensland with the lodgement of a mining lease application.
In response to the proposed application, Queensland’s Department of Resources reported it was satisfied that the formal mining lease application could be made.
A mining lease is considered one of the most critical government approval documents for developments in Australia.
PFS released
The lodgement of the application follows the recent completion of a robust pre-feasibility study (PFS) and maiden ore reserve estimate for Mt Chalmers, located 17 kilometres north-east of Rockhampton.
The PFS highlighted that Mt Chalmers has the capacity to support a stand-alone 1 million tonnes per annum process plant.
The initial mine life estimate of 10.4 years supports life-of-mine revenue of $1.64 billion and free cash flow of $636 million at a net present value of $373m.
The Mt Chalmers and nearby Develin Creek projects have a measured, indicated and inferred resource of 15.1Mt at 1.3% for 195,800t of copper equivalent.
‘Exciting development’
“The submission of a mining lease application is a very exciting development for the company—to get to this position within just over three years is a tremendous achievement by the QMines team,” company management told shareholders.
“The recent pre-feasibility study results on the Mt Chalmers deposit demonstrate a long-life, low-cost and high-margin mining operation.”
“The project has immediate and known upside with five additional deposits at the Mt Chalmers and Develin Creek projects that fall outside of the current mine plan.”
Bonanza grade samples
Earlier this month, the company revealed it had identified bonanza-grade gold rock chip samples of up to 256 grams per tonne from historic work completed at the Mt Chalmers project.
QMines has undertaken a review of historical data, digitising open file report data compiled by Orr and Associates based on exploration work undertaken by Geopeko, Newmont, Zhong Haa Mining, Outokumpu Exploration, Marlborough Gold Mines and CRA Exploration.
The company is now preparing to commence its maiden drilling program at Develin Creek, where the company has two high-grade copper-zinc deposits that have the potential to grow the scale of a potential mining operation at Mt Chalmers.
Mt Chalmers is a high-grade historic mine that produced 1.2Mt at 2.0% copper, 3.6g/t gold and 19g/t silver between 1898 and 1982.