QMines makes significant progress on Mt Chalmers and Develin Creek integration
QMines (ASX: QML) is currently tracking ahead of schedule with studies examining the integration of its flagship Mt Chalmers site and its recently-acquired Develin Creek copper project in Queensland.
The company had previously forecast it would complete and deliver a pre-feasibility study (PFS) and release a maiden ore reserve statement in Q2 2024 and is on target to beat that timing with significant progress made during the Queensland wet season.
The planned PFS is assessing the viability of the Mt Chalmers and Develin Creek projects being developed as a stand-alone mining operation.
QMines managing director Andrew Sparke said work undertaken by the company and its independent consultants since November 2023 has included the completion of three geotechnical diamond drill holes at the Mt Chalmers deposit, completion of the PFS-level metallurgical test work, design of the treatment plant and flow sheet, PFS-level design of the tailings storage facility and updated open-pit optimisation estimates.
“With the recent acquisition of the Develin Creek project, the company has now shifted its focus to the delivery of a PFS, which we have fast-tracked over the current Queensland wet season,” Mr Sparke said.
“QMines staff and a team of consultants have rapidly advanced the PFS, for which I’m pleased to say is on budget and well ahead of schedule.”
“I would like to thank those involved for their tremendous efforts over the last few months and to our shareholders for their patience whilst we deliver this large body of work.”
“Open-pit copper projects with low stripping ratios in mining-friendly jurisdictions are extremely rare and we believe the Mt Chalmers project has the potential to be the next genuine Australian copper producer,” he added.
“With 12.3 million tonnes of potential open pit material supporting the potential for a 12-year mine life, we have something truly unique at Mt Chalmers.”
Mt Chalmers optimisation
QMines has already completed an open-pit optimisation estimate for Mt Chalmers based on the mineral resource estimate (MRE) announced by the company in late November 2022 and again in mid-September 2023.
If realised, the 12.3Mt of mined material identified would be a 66% increase on the prior studies.
A Develin Creek open-pit optimisation estimate has also been delivered with final pit designs and mine schedule for the PFS due for completion over coming weeks.
Develin Creek and Woods Shaft optimisations have indicated the potential for an additional 1.7Mt of open-pit material.
The estimate further strengthens the company’s view that both Mt Chalmers and Develin Creek have significant development potential as open-pit copper mining projects, of which there are very few in Australia.
Metallurgical test work
The company also reported it is in the final stages of completing the PFS-level metallurgical test work for the Develin Creek project, which is expected to be delivered in the next few weeks.
This will expand on historical sighter test work undertaken by Zenith Minerals prior to QMines acquiring rights to the project in August 2023.
The current Develin Creek optimisation estimate for the ‘Sulphide City’ open pit delivers approximately 1Mt of material down to 150 metres in depth with a higher stripping ratio of 11.7:1.
The Develin Creek estimate will not form part of the Mt Chalmers planned mining schedule until the final metallurgical test work has been completed and recovery to concentrates has been estimated.
Develin Creek has the potential to extend the project life by a further 12 months. However, with the current MRE having 47% in the “indicated” category, it would require further drilling to improve the confidence in the resource modelling and optimisation estimate.
Pyrite option
While the company’s focus has been on delivering marketable copper and zinc concentrates, it elected to extend test work to consider the viability of producing a pyrite concentrate.
The addition of the pyrite concentrate represents a further income stream while also significantly reducing the environmental impact of the project.
The Mt Chalmers copper and zinc concentrates produced from the recent test work are very clean and possess low deleterious elements.
The pyrite market appears to be growing, with recent market appraisals pointing to significant increases in the use of sulphuric acid in the renewable energy market and the manufacture of batteries and solar cells.