QMines confirms commercial potential of Develin Creek with positive metallurgical results

QMines (ASX: QML) has received generally positive maiden metallurgical test work results for future production from Develin Creek, confirming the Queensland project’s commercial potential.

The metallurgical results indicate that Develin Creek can produce saleable copper and pyrite concentrates.

Further work, however, will need to be undertaken with regard to zinc production.

Consistent success

The company’s Queensland development plans have been boosted by consistent exploration success at its flagship Mt Chalmers and nearby Develin Creek projects.

QMines recently unveiled a new mineral resource estimate for a combined resource of 3.2 million tonnes at 1.05% copper, 1.22% zinc, 0.17 grams per tonne gold and 5.9 g/t silver.

These promising numbers have been supported by the new metallurgical results.

Assessing opportunities

Supervised by Como Engineers, the metallurgical program utilised a drill core from the Develin Creek project and was designed to assess the deposit’s metallurgical response to the flowsheet for the proposed processing through the company’s Mount Chalmers flotation plant.

The work assessed whether the Develin Creek deposit ore is able to be processed into copper concentrate of around 15%, zinc concentrate of around 50% and pyrite concentrate containing approximately 85% combined pyrite by weight.

While the program confirmed the possibility of generating saleable copper and pyrite concentrates, it also found that it is not possible to process a saleable zinc concentrate from Develin Creek ore through the proposed Mount Chalmers mineral concentrator.

The impact of the zinc results will now be reflected in future project acquisition payments by QMines.

Finalising acquisition

The company entered into a binding terms sheet with Mackerel Copper, a wholly owned subsidiary of Zenith Minerals (ASX: ZNC), in August 2023 to acquire an initial 51% interest in Develin Creek.

Based on the new zinc concentrate grade results, QMines will pay Mackerel an adjusted cash payment of $975,000 and an adjusted share-based payment of fully paid ordinary shares in QMines to the value of $687,500.

Qmines’ acquisition of the remaining 49% was to occur on 5 September 2024, but the parties have now agreed to push this back to 30 September.

This will enable QMines to obtain shareholder approval for the issue of shares to Mackerel at the general meeting to be held on 23 September.