QMines Ltd (ASX:QML) expects to have the reverse circulation (RC) drill spinning this week at the Develin Creek Project west of the flagship Mt Chalmers Copper-Gold Project in central Queensland with the aim of bringing two deposits into the mine plan for Mt Chalmers.
The program, which will focus on infill resource definition drilling at the Sulphide City and Scorpion resources, aims to improve resource confidence and convert the largely inferred resource to the higher confidence indicated and measured JORC categories.
Site access tracks and the construction of drill pads is nearing completion with QMines’ RC drill rig mobilised to site with drilling operations expected to start later this week.
Seventh resource upgrade
The phase one drill program is designed to bring the high-grade Scorpion open-pit resource into the Mt Chalmers mine plan while the drilling is also planned to infill the existing resource at Develin Creek and test for potential extensions.
This drilling program is expected to deliver QMines’ seventh resource upgrade in the fourth quarter of 2024 and will meet contractual requirements for the acquisition of the remaining 49% interest in the Develin Creek Project.
Growth activities
QMines chairman Andrew Sparke said: "Following the success of the recent capital raising, the company is eager to commence its planned growth activities at Develin Creek.
“Having recently completed a pre-feasibility study at the company's Mt Chalmers Project that demonstrates a long-life, high-margin and low-cost copper and gold mining operation, QMines is now focusing on growing its scale.
“The Develin Creek Project hosts two high-grade deposits at Scorpion and Sulphide City that fall outside of the current mine plan. These deposits provide potential to increase the scale of a potential mining operation at the nearby Mt Chalmers project.”
QMines has rights to a 100% interest in two advanced projects covering a total area of 603.7 square kilometres. The flagship Mt Chalmers Project is 17 kilometres northeast of Rockhampton.
Location and infrastructure at the Mt Chalmers and Develin Creek projects.
Existing resource estimates
Mt Chalmers has a JORC 2012 mineral resource estimate (MRE) of 11.3 million tonnes at 0.75% copper, 0.42 g/t gold, 0.23% zinc, 4.8 g/t silver and 4.28% sulphur with 91% in the measured and indicated categories.
The company recently completed a pre-feasibility study (PHS) for the Mt Chalmers deposit which demonstrated a long-life, high-margin and low-cost mining operation.
In addition, the satellite Woods Shaft resource hosts a MRE of 540,000 tonnes at 0.54% copper and 0.95 g/t gold while the Develin Creek Sulphide City and Scorpion deposits contain a combined resource of 3.2 million tonnes at 1.05% copper, 1.22% zinc, 0.17 g/t gold and 5.9 g/t silver with 53% classified as inferred.
These three resources aren’t currently in the mine plan demonstrating significant upside potential to the recently completed Mt Chalmers PFS results.
On August 28, 2023, QMines signed a term sheet to acquire an initial interest of 51% of the Develin Creek Project from Zenith and retains the right to acquire the remaining 49% interest within 12 months.
To establish ore reserve
The upcoming RC drill program is aimed at establishing a Develin Creek ore reserve and extending the mine life of the combined projects through the addition of the higher-grade Develin Creek material into the Mt Chalmers mine plan.
This program will be implemented in two phases with phase one focusing on the Scorpion and Window areas which represent potential open pit extractable material.
On completion of the Scorpion drilling, the RC rig will move to the Sulphide City deposit.
The drilling program is estimated to continue over the coming months and is expected to be completed by the fourth quarter of 2024.
Upon completion, QMines will undertake initial mining studies on the Scorpion and Sulphide City resources with a view to update the current Mt Chalmers ore reserve estimate, PFS mine plan and financial model.