QMines Ltd (ASX:QML) has forecast 12.3 million tonnes of potential open pit material and a 12-year mine life for its flagship Mt Chalmers copper and gold project in Queensland, providing cheer for investors and sending the company’s shares more than 10% higher in ASX trading.
The forecast is contained in an ongoing pre-feasibility study (PFS) assessing the viability of the copper and gold developer’s Mt Chalmers and Develin Creek projects as a standalone mining and processing operation.
The PFS which commenced in July last year is ahead of schedule and within budget, with the plant design, flow sheet, pit optimisations, metallurgy, tailings storage facility and capital and operating expenditure projections now completed.
The company has previously forecast the PFS and the maiden ore reserve statement to be completed and delivered in the second quarter of 2024.
Among the notable deliverables so far:
- Develin Creek and Woods Shaft have the potential to deliver an additional 1.7 million tonnes of open pit material;
- A low strip ratio was achieved at Mt Chalmers and Woods Shaft open pits, with 4.0:1 and 4.7:1 respectively; and
- A 1 million tonnes per annum processing plant with the potential for a 12-plus year mine life from open pit mining operations.
“Truly unique”
“With the recent acquisition of the Develin Creek project, the company has now shifted its focus to the delivery of a pre-feasibility study, which we have fast-tracked over the current Queensland wet season,” QMines managing director Andrew Sparke said.
“QMines staff and team of consultants have rapidly advanced the PFS, 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.
“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.”
Location of the Mt Chalmers and Develin Creek projects and infrastructure.
The combined mineral resource estimate for Mt Chalmers, Develin Creek and Woods Shaft currently stands at 15.1 million tonnes at 1.3% copper equivalent for 195,800 tonnes copper equivalent, with 88% of the Mt Chalmers resource in the measured and indicated categories and 47% of the Develin Creek resource in the indicated category.
The Develin Creek optimisation estimate of 1 million tonnes will not form part of the Mt Chalmers planned mining schedule until the final metallurgical test work has been completed, which is expected in the coming weeks.
Similarly, the current optimisation estimate of 737,337 tonnes of open pit material at the Woods Shaft target will not form part of the Mt Chalmers mining schedule as the resource is in the inferred category.
QMines plans to undertake further drilling to upgrade the resource into the indicated category as the project develops.
PFS deliverables completed and pending completion, January 2024.
Offtake discussions
In the December quarter of 2023, company officials travelled to Melbourne to meet with several metals traders to discuss the Mt Chalmers and Develin Creek projects and potential offtake arrangements.
Initial feedback from these discussions has been positive, with strong interest indicated by multiple parties.
To read the detailed progress report, click here.