QMines launches growth strategy for Mt Chalmers and Develin Creek copper-gold projects
Junior explorer QMines (ASX: QML) has announced a growth and exploration strategy for the historic Mt Chalmers and Develin Creek copper-gold projects in Queensland.
Following completion this month of the Mt Chalmers pre-feasibility study (PFS) and maiden ore reserve statement, the company is now planning to begin the next stage of drilling and exploration at the high-grade operation in the coming weeks.
The work will comprise resource in-fill and extensional drilling at the Scorpion and Sulphide City deposits within Develin Creek.
It will also include activities at brownfield and greenfield targets, including the recently discovered Artillery Road prospect at Mt Chalmers, to increase the scale of a potential mining operation and identify new discoveries.
Economic viability
The Mt Chalmers PFS demonstrated an economically viable project with low costs, high margins and a long life.
It focused on the Mt Chalmers open-pit mine with several nearby deposits yet to be incorporated into the proposed mine plan and study.
Executive chair Andrew Sparke said the new drilling program would help upgrade a significant portion of the inferred material within these deposits to the indicated category.
“These deposits all represent an opportunity to increase the scale and projected mine life of a potential operation at Mt Chalmers,” he said.
“Drilling is expected to commence at Scorpion and Sulphide City in the coming weeks now that our planned approach has been finalised.”
Develin Creek deposits
QMines acquired Develin Creek in August from Zenith Minerals (ASX: ZNC) for $4.5 million in cash and shares.
The project is host to several high-grade volcanogenic massive sulphide deposits within the Rookwood volcanics.
Sulphide City has a reported indicated and inferred mineral resource estimate of 1.9 million tonnes grading 1.1% copper, 1.4% zinc, 0.2 grams per tonne gold and 6.2 g/t silver.
At Scorpion, QMines has reported a resource estimate of 1.2Mt at 1.1% copper, 0.7% zinc, 0.2g/t gold and 4.9g/t silver.
Mt Chalmers prospects
The Mt Chalmers project comprises the Woods Shaft, Botos, Mt Warminster and Artillery Road prospects.
Woods Shaft is located 700m south-west of the Mt Chalmers open pit and has an inferred mineral resource estimate of 540,400t at 0.5% copper and 0.95g/t gold for 2,700t copper and 16,440 ounces gold.
The deposit is approximately 250m in strike, 400m wide and up to 90m in depth but remains open in multiple directions.
Mr Sparke said the geology of Woods Shaft is similar to the Mt Chalmers main lode and represents a “logical extension” to a proposed mining operation.
Additional targets
At Botos, QMines has identified 42 historic holes drilled for a total of 5,469m.
The exploration target has an estimated resource of between 1.5Mt and 2.5Mt at between 0.5g/t and 0.8g/t gold, 1.1% and 1.4% zinc, 0.5% and 0.7% lead, 0.1% and 0.2% copper and up to 50g/t silver.
The Mt Warminster exploration target contains 59 historic drill holes over a total of 3,194m and is estimated to contain a resource between 1.5Mt and 1.8Mt at between 0.5% and 0.7% zinc, 0.1% and 0.2% copper, 0.25% and 0.35% lead and up to 12g/t silver.
Artillery Road discovery
QMines discovered Artillery Road in August when it drilled an electromagnetic (EM) target identified from an earlier regional EM survey.
The company launched a maiden 13-hole reverse circulation campaign at the prospect in November for 2,373m.
The results confirmed copper-zinc mineralisation within a semi-massive pyrite-pyrrhotite skarn and showed a “classical geochemical zonation” that QMines said would help guide further drilling.
Several intersections were reported with copper equivalent grades up to 1.46% and individual grades up to 2.43g/t gold, 4.9g/t silver, 1.02% copper, 0.12% lead and 5.12% zinc over 1m intervals.
One of the holes produced a strong intercept of 15m at 1.01% copper equivalent.