QMines acquires new land near Mt Chalmers copper-gold mine
Exploration company QMines (ASX: QML) has signed a conditional contract to acquire an additional 50 acres of freehold land adjacent to its flagship Mt Chalmers copper-gold mine in Queensland.
The acquisition covers part of the southern open pit and resource at the historic development, and will provide the company with unrestricted access to further resource extension drilling and exploration.
It boosts QMines’ total landholding in the area to 219 acres across four freehold rural properties adjacent to the mine.
QMines’ freehold land acquisition plan is designed to complement its existing asset base and add value for shareholders.
It is expected to dominate the company’s business for at least the first two years since its ASX listing in May.
The plan kicked-off in April with the purchase of a 126 acre parcel of land including an “off grid” site office and accommodation facilities which are now used for staff and contractors during drilling programs.
Executive chairman Andrew Sparke said the latest acquisition comprises an important part of the company’s plan.
“This acquisition is a positive development for our company and we plan to continue assessing new strategic land packages in the region as they become available,” he said.
QMines’ acquisition strategy comes at a time when copper prices are hitting record highs and global stockpiles are near to rock bottom.
Copper for delivery in December rose sharply for the third day in a row on the Comex market in New York, hitting US$4.78 per pound (or US$10,518 per tonne).
It is the highest since the previous record in May and signalled a 12% gain for the week.
Copper tracked by London Metals Exchange warehouses and not already earmarked for withdrawal has dropped 89% in volume this month after a surge in European orders for the metal.
Stockpiles are also believed to be falling fast on other exchanges and in private storage.
Inventories currently available on the LME are at their lowest level since 1974.
After fresh orders to withdraw metal on Friday, there is now approximately 14,150 tonnes of copper freely available in LME warehouses, in an industry which consumes about 25 million tonnes annually.