QMines Ltd (ASX:QML) executive chairman Andrew Sparke talked with Proactive’s Tylah Tully about the latest developments at the Develin Creek Project in Queensland.
The company has released strong initial results from its maiden drilling program, focusing on the Scorpion deposit, one of three high-grade copper deposits in the area.
Sparke shared his excitement, stating, “We’ve come out with some absolutely terrific results today.”
He highlighted the program’s focus on shallow, high-grade copper and zinc mineralization, emphasising the deposit's potential to deliver strong returns for shareholders.
The results include high-grade copper with significant zinc by-products and precious metal credits, like gold and silver.
QMines plans to continue drilling throughout the wet season and expects further updates before year-end.
Moving forward, the company aims to update resources, conduct optimisation studies and integrate results into a pre-feasibility study for its Mount Chalmers operations.
With a robust pipeline of deposits for further exploration, QMines is positioning itself as a low-risk copper developer with a focus on maximising shareholder value.
Sparke concluded, “We genuinely believe we’ve got one of the best growth profiles among copper developers.”
Highlights
- Project focus - QMines is conducting its maiden drilling program at the Develin Creek Project in Queensland.
- Scorpion deposit - First of three high-grade copper deposits being drilled, featuring shallow, high-grade copper and zinc mineralisation with by-products like gold and silver.
- Drilling results - Initial results announced for 36 holes; ongoing drilling expected to continue through the wet season.
- Future plans - Resource upgrade, pit optimisation study and updated pre-feasibility study for Mount Chalmers integration planned for mid-2024.
- Growth strategy - Focus on low-cost, shallow, high-grade material with minimal exploration risk through infill drilling and resource expansion.
- Next (LON:NXT) step -: Transition to Sulfide City deposit and additional deposits in 2024 to expand operations.
Tylah Tully (TT): I’m joined by QMines’ executive chairman Andrew Sparke, who’s going to talk us through the next round of results the company has released from its maiden drilling program at the Develin Creek Project in Queensland. Andrew, thanks for joining us today.
Andrew Sparke (AS): Thanks for having me, Tylah.
TT: So talk to us about this program. Where are you at now, and run us through the recent highlights.
AS: This is an exciting day for us and our shareholders. Just to give you a bit of context, we bought a very high-grade copper and zinc asset near our Mount Chalmers mine in central Queensland. We finished that acquisition a couple of months ago, and this is our maiden drilling program at one of three high-grade copper deposits at this new project. The first deposit we’re drilling is called Scorpion.
We’ve come out with some absolutely terrific results. You can see I’m quite excited about it. It’s been the culmination of a lot of work by the team.
We announced the first 36 results from the program and we will continue to drill as long as the wet season allows us. We expect a lot more great news flow coming into Christmas, which is very exciting.
TT: Let’s get more into Scorpion now. The results sound really encouraging. What do you know about the deposit at this stage?
AS: Fantastic. Look, there are three deposits up here and Scorpion is the shallower of the three. We started with Scorpion because we’re really trying to focus on high-grade, shallow, open, repeatable material. That’s a key point of difference for us.
We aim to build a business plan around low-cost, shallow, high-grade material that generates strong returns for shareholders. Scorpion fits that profile.
The existing resource extends from surface down to about 150 metres. It contains really shallow mineralisation and high grades of both copper and zinc, plus by-products like gold and silver. The predominant mineral here is copper and the results we’ve announced really highlight the grade of this deposit.
Our overall aim is to grow the mine plan and tie it into Mount Chalmers, which is about 90 kilometres away. We’re drilling out five deposits around the old mine to grow the scale of our Mount Chalmers operation.
Next steps
TT: Where do you go from here? What are the next steps?
AS: We have more drilling results expected before Christmas and into the New Year.
At Scorpion, we’ll conduct a resource upgrade and a pit optimisation study to assess what it means for the larger Mount Chalmers operation. This will lead into an updated pre-feasibility study, likely by mid-next year.
Once we finish drilling at Scorpion, we’ll move to the next deposit, Sulfide City, which is only about a kilometre away.
Over the course of next year, we’ll drill other deposits in the area.
I genuinely believe we’ve got one of the best growth profiles among copper developers, focusing on infill drilling and extending known deposits. It’s a low-risk strategy that sets us apart for shareholders.
TT: It definitely sounds like exciting times for QMines. There’s a lot of news flow that investors can look forward to.
AS: Absolutely. We’re committed to keeping shareholders engaged. This is just the beginning of our maiden drilling program, and there’s plenty more to come. Watch this space.
TT: Thanks for joining us today, Andrew.
AS: Thanks very much for your time.
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