Published On: May 23rd, 2023
QMines Limited (ASX:QML) (QMines or the Company) is an Australian exploration and development company focused on copper and gold projects in Queensland. The Company aims to become Australia’s first zero-carbon copper and gold developer with a portfolio of four advanced-stage projects, including the flagship Mount Chalmers Copper-Gold mine. QMines aims to create long-term value for its shareholders while operating in a socially responsible and environmentally sustainable manner.
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QMines’ 100%-Owned Flagship and Emerging Projects
QMines owns a diverse portfolio of advanced copper and gold projects in Queensland, Australia, namely the Mount Chalmers Copper-Gold Project, the Silverwood base metals Project, Warroo Copper and Gold Project, and the Herries Range Gold Project.
Mount Chalmers Copper-Gold Project
The Mt Chalmers project is the flagship asset of QMines, located in central Queensland, Australia. The brownfield Volcanic Hosted Massive Sulphide (VHMS) deposit was mined sporadically until 1982. The project covers approximately 316 km² of tenure.
Since listing in only May 2021, the Company has completed four resource updates at the Mt Chalmers project. Mr Stephen Hyland of HMGC completed the Company’s second, third and fourth Mineral Resource Estimate’s (MRE). The most recent MRE by HGMC was completed in November 2022. The region hosts a number of world class deposits, including the Mount Morgan, Cracow, and Mount Rawdon mines, demonstrating the significant growth potential at Mt Chalmers.
Significant Advancements at Mt Chalmers:
- QMines has delivered its third and fourth resource upgrades at Mt Chalmers in just 18 months of listing.
- The Measured, Indicated, and Inferred Resources now stand at 11.86Mt @ 1.22% contained copper equivalent, of which 84% sits in the measured and indicated JORC categories.
- Currently, Mt Chalmers has four identified deposits, with Mt Chalmers and Woods Shaft being the two deposits in resource. The Company aims to convert the remaining two deposits, Botos and Mount Warminster, into resources and discover additional VHMS deposits.
QMines plans to continue exploring and developing the Mt Chalmers copper and gold mine through 2023, focusing on advancing resource estimation, metallurgical testing, and environmental studies. The Company also plans to engage with potential investors, community stakeholders, and partners to advance the project’s development.
The Silverwood Copper-Gold Project
FIGURE 4: FACTS ABOUT SILVERWOOD BASE METALS PROJECT
The Silverwood Project is another significant asset of QMines, located 15km South of Warwick in Queensland. Silverwood covers a 234km² exploration area with the potential for Volcanic-Hosted Massive Sulphide (VHMS) and Mississippi Valley-type deposits, hosting significant quantities of zinc, copper, gold, silver, and lead.
Situated in the Calliope Island Arc, Silverwood is renowned for its significant gold deposits, including the Mount Morgan gold mine (+8Moz Au, 400kt Cu). Silverwood is situated in an area with a complex geological structure, providing ample opportunities for further exploration and potential discoveries.
Highlights of the Silverwood Base Metals Project:
- The Silverwood Project was previously explored by the Geological Survey of Queensland (GSQ).
- The project has an initial exploration target of 0.8-1.0 Million Tonnes @ 3.2-3.7% Zn, 0.3-0.5% Cu, 15-25g/t Ag and 0.3-0.5% Pb.
- Drill results indicate the presence of copper grades as high as 3%.
Following significant base metal mineralisation at Grieves Quarry, further exploration initiatives at the Silverwood project will focus on identifying potential gold mineralisation in calcareous or carbonate sedimentary rocks and continuing to target base metals.
The Warroo Copper-Gold Project
QMines’ Warroo Copper-Gold Project is located 50km west of Stanthorpe. The project spans 216km² of tenure, encompassing the historical Warroo copper-gold mine.
Between 1909 and 1992, the Warroo copper-gold mine extracted 13,982 ounces of gold, 21 tonnes of copper, and 901 ounces of silver from a depth of 40m. Denaro (1992) identified granitoid-related mesothermal vein deposits, which have high gold grades and are a priority target for mineral exploration.
Highlights of the Warroo Project:
- The Warroo Project hosts eight high-grade small-scale historic mines and deposits.
- The best drill hole result from the Warroo project was 8m @ 13.46g/t Au, highlighting the significant exploration potential of the project.
QMines plans to conduct a comprehensive data compilation exercise to develop a digital summary map, which will enable the assessment of anomalous areas identified by past explorers and assist in further exploration. The Company has proposed drilling the primary sulphide zone of the Warroo mine and its surroundings, which present numerous gold and copper targets for follow-up.
The Herries Range Gold Project
The Herries Range Gold Project covers an extensive area of 330km². The project area is rich in gold mineral occurrences with high-grade, small, hard rock workings, numerous small-scale bonanza mines, and wide-spread alluvial gold deposits. The geological features of the project have drawn the attention of several major companies in the past.
Highlights of the Herries Range Gold Project:
- The project has significant exploration potential, with 51 known historic workings and widespread alluvial production.
- The Kaffir Chief Gold Mine at the Herries Range Project has shown impressive gold mineralisation with an average sampling grade of up to 14.9g/t Au.
QMines plans to conduct a comprehensive data compilation exercise for Herries Range to develop a digital summary map. This will enable the re-assessment of anomalous areas identified by past explorers and aid in targeting numerous gold and other mineral targets for follow-up exploration.
Redefining Copper and Gold Exploration with a Zero Carbon Footprint and Strong ESG Credentials
QMines aims to establish itself as a leading copper and gold developer in Australia, with a strong commitment to best practice environmental, social, and corporate governance (ESG) practices.
The Company has recognised the importance of copper in the global shift towards clean energy and has committed to achieving net zero emissions by 2030, aligning its efforts with the global climate agenda.
- In February 2022, QMines’ efforts towards carbon neutrality were officially recognised when it became one of only three ASX-listed resources companies to be certified under the Australian government-backed Climate Active program.
- The Company has upgraded its on-site solar and battery backup system, adding a 6.6kW solar system to enable operations at Mt Chalmers to remain off-grid.
- QMines has recently entered into a long-term supply agreement with an Australian renewable fuel company to reduce Scope 1 diesel emissions used in exploration and development activities by an initial 20%.
In addition, QMines has laid out a comprehensive ESG framework that guides its operations, ensuring the Company meets the highest standards of sustainability and social responsibility.
FIGURE 10: INITIAL ESG INITIATIVES IMPLEMENTED BY QMINES.
By prioritising ESG considerations, QMines sets a new benchmark for responsible mining practices in Australia.
In the 21st century, decarbonisation is considered one of the most significant challenges. Governments across the globe committed to binding targets in 2015 to constrain global warming to 2°C. Rapidly implementing widespread electrification is critical in achieving this objective by replacing hydrocarbons with renewable power sources. Copper is a crucial element in this process, and as electrification continues to progress, it is projected that annual copper demand will reach 36.6 million tons by 2031. However, based on current supply projections considering potential restarts, likely projects, and recycled products, mine supply is expected to only reach 30.1 million tons. This means an additional 6.5 million tons of copper supply is required to meet demand, representing a 20% increase. If further copper mines aren’t discovered and brought online by 2031 to fill this deficit, the world facer sharply higher copper prices. This bodes well for copper developers such as QMines.
Andrew Sparke, Managing Director of QMines Limited
FIGURE 11: QMINES MANAGING DIRECTOR ANDREW SPARKE
Andrew Sparke is an experienced resources analyst, fund manager and capital markets professional with over 19 years experience. He has a strong track record of completing successful corporate transactions including IPOs, private placements, and secondary market transactions, which has earned him a reputation as a trusted and respected leader in the industry.
Mr Sparke founded Olive Capital, an Australian boutique investment house, where he offered expert guidance on capital raising and corporate transactions to numerous ASX-listed companies. He has also demonstrated an ability to identify and execute investment opportunities, resulting in significant value creation for his clients.
Mr Sparke has significant ASX listed board experience including Chairman of Torian Resources Limited (ASX:TNR), Executive Director of Alt Resources Limited (ASX:ARS) which was taken over by a large US based private equity firm at a significant premium, and now QMines Limited (ASX:QML) where he holds the title of Founder and Managing Director.
Andrew Sparke‘s academic qualifications include a Bachelor of Business and a masters in Finance from the University of Technology Sydney. He is also a graduate member of the Australian Institute of Company Directors.
Latest News from QMines Limited
- On 27th February 2023, QMines announced a Robust Pit Optimisation Study demonstrating the development potential of the high grade Mt Chalmers deposit.
- On 26th April 2023, QMines completed its extensive airborne geophysical survey at its Mt Chalmers project, which has successfully located 34 Electromagnetic Anomalies demonstrating the potential for further discoveries in the region.
- On 1st May 2023, QMines announced the completion of a heavily oversubscribed $3 million placement to fund exploration and development activities at its high-grade Mt Chalmers mine.
QMines’ Investor Outlook & Financials
- The Mt Chalmers project is strategically located in a Tier-1 jurisdiction near the coast and key infrastructure. This location offers several advantages, including proximity to China, the largest consumer of copper globally.
- In less than two years, QMines’ management team has achieved significant milestones, including conducting ~15,000 metres of drilling, releasing four resource updates, and identifying a total of 11.86 million tonnes of copper and gold resources with a copper equivalent grade of 1.22% copper equivalent.
- QMines Limited’s stock stands at $0.13 per share as of May 12th, 2023, with a 52-week range of $0.12 to $0.26.
- The Company has a market capitalisation of $23.24 million as of May 12th, 2023 and has issued a total of approximately 166.0 million shares on issue.
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