Mining

QMines divests non-core assets to focus on Mt Chalmers copper development

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By Imelda Cotton - 
QMines ASX QML Mt Chalmers Queensland copper gold land acquisition

QMines’ latest land acquisition boosts its freehold ownership to 219 acres adjacent to its historic Mt Chalmers mine in Queensland.

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QMines (ASX: QML) has executed an exclusive option agreement with Queensland Critical Minerals (QCM) for the divestment of its Silverwood, Warroo and Herries Range projects in the state’s south-east.

The gold and base metal exploration projects are considered to be non-core assets and their sale will provide QMines with resources to pursue the growth and development of its flagship Mt Chalmers project

Proceeds will also allow the company to search for new and nearby copper interests.

Terms of divestment

Under the terms of the divestment, QCM will pay an option fee of $22,174 for the right to purchase a 100% interest in the projects at any time within the 12-month option term.

To exercise the option, QCM will pay QMines $100,000 in cash and $375,000 in shares upon a planned listing in Australia or in Canada.

QCM will pay all rents, rates and outgoings incurred on the projects during the option period.

Focused strategy

QMines managing director Andrew Sparke said the divestment will allow for a more focused exploration strategy.

“We believe this approach will deliver faster and more compelling outcomes for shareholders,” he said.

“The divestment will allow us to focus on the growth and development of Mt Chalmers while retaining exposure to the upside of these assets via our shareholding in QCM.”

He said advanced copper development projects which could be developed quickly would deliver future growth for QMines.

Silverwood and Warroo

The Silverwood project is located 15 kilometres south of the regional centre of Warwick and comprises two exploration permits consisting of 78 sub-blocks across 234 square kilometres of the greater Silverwood Group domain.

The tenements contain a relative abundance of historic mines and mineral occurrences prospective for gold and base metals.

Warroo is 50km west of Stanthorpe and also comprises two permits and 72 sub-blocks over 216 sq km.

QMines said the project has potential to define mesozonal to epizonal intrusive related gold mineralisation related to structural corridors and on extensions to the Warroo and Ti Tree structures.

Regional aeromagnetic data shows Warroo to be located east of a large oval magnetic feature which appears to be at moderate depth.

Herries Range project

The Herries Range gold project comprises three contiguous exploration permits with 110 sub-blocks over 330 sq km.

It covers the central and southern portions of the Warwick goldfields region and alluvial deposits are extensive throughout the tenement package.

QMines has located several historical mines and zones of prospective rock formations associated with hard-rock and alluvial gold mineralisation.

Prior to the divestment, the company had planned early-stage exploration work including ground-based geophysical surveys, geochemical soil grids and future drill testing to identify areas for detailed follow-up.