Mount Mackenzie Integration Strengthens Regional Plan
QMines Limited, also known as QML on the Australian Securities Exchange, has confirmed positive open pit optimisation results for its newly acquired Mount Mackenzie Gold-Silver Project. The company completed the acquisition from Resource and Energy Group in July 2025 and integrated the asset into its broader Central Queensland growth strategy.
Mount Mackenzie is approximately 140 kilometres to the northwest of Rockhampton and 45 kilometres north of the QMines Develin Creek project, under consideration of becoming a minerals processing and mining central hub comprised of Mt Chalmers and Develin Creek. The various mineralisation located in the project is of high-sulphidation epithermal which is common in the volcanic geology of the region.
Location and infrastructure at Mt Chalmers, Develin Creek, and Mt Mackenzie projects
Production Target Supports Processing Hub Expansion
The open pit optimisation produces a Production Target Estimate of 2.3 million tonnes. This comprises: 800,000 tonnes of oxide material at 1.3g/tonne gold and 7.7g/tonne silver. The sulphide portion amounts to 1.5 million tonnes containing 1.38 grams gold per tonne and 9.5 grams silver per tonne. The strip ratio of 4.2: 1 provides low-waste mining profile.
Contained metal across the optimisation includes 100,000 ounces of gold and 658,000 ounces of silver. Of the material modelled, 90 percent falls within the Indicated category. The balance comprises Inferred resources.
Updated Pre-Feasibility Study Due in 2026
QMines Limited (ASX:QML) will become actual residents in their new pre-Feasibility Study (PFS), planned to be delivered in the first half of 2026, with Mount Mackenzie entering the project. The updated PFS will be able to look at increasing the Mt Chalmers plant capacity of 1.0Mtpa to 2.0Mtpa. COMO Engineers are involving the process plant design and the flow sheet parameter alteration process to cover the blended feed of the three projects.
The updated design includes a carbon-in-leach (CIL) circuit for oxide material and revised flotation parameters for sulphide ores. Additional metallurgical testing is underway.
Executive Comments on Strategic Fit
Executive Chairman Andrew Sparke stated, “We are delighted with this optimisation results at Mount Mackenzie, which confirms our newest asset to be a high-quality, high-margin open pit operation in the making.”
He added, “These results bolster our hub-and-spoke strategy, with Mount Mackenzie’s material contributing to a planned centralised 2.0Mtpa processing plant. We now have three advanced deposits… shaping up to be one of Australia’s next long-life, multi-asset copper and gold operations with scale.”
JORC-Compliant Resource Increases
QMines reported a new JORC 2012 Mineral Resource Estimate for Mount Mackenzie shortly after acquisition. The updated resource stands at 3.35 million tonnes at 1.40 grams per tonne gold and 8.4 grams per tonne silver. This equates to 151,000 ounces of gold and 902,000 ounces of silver.
Of the resource, 67 percent (2.27Mt) is classified as Indicated with the remainder Inferred. The estimate reflects a 16 percent increase in gold content and a 15 percent lift in gold grade from the previous estimate.
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Favourable Metallurgical Results Support Economics
ALS Metallurgy conducted bottle roll and flotation tests on oxide, transitional and sulphide samples. Gold recovery for oxide material reached 91 to 96 percent. Transitional zones achieved 79 to 82 percent, while sulphide recovery ranged between 52 and 64 percent.
Silver recovery rates stood at 80 to 92 percent for oxide, 53 to 67 percent for transitional and 30 to 48 percent for sulphide material.
Flotation tests by ALS returned gold recoveries up to 89 percent for sulphide composites. Pyrite was the dominant sulphide, with quartz and pyrophyllite as major gangue components. The data confirms compatibility with the Mt Chalmers plant flowsheet.
Cost Parameters and Mining Design
Minecomp conducted the optimisation study using updated gold and silver prices of AUD$5,000 per ounce and AUD$55 per ounce respectively. The analysis applied a diluted payable cut-off grade of 0.3 grams per tonne gold.
Three open pits were designed with 45-degree batters and ramp widths between 15 and 24 metres. The study accounted for 5 percent mining dilution and 95 percent mining recovery. Conventional mining methods will be used to extract material for haulage to Mt Chalmers.
Regional Inventory Strengthens
Combined resources across Mount Chalmers, Develin Creek and Mount Mackenzie now total 18.9 million tonnes. Average grades stand at 0.88 percent copper, 0.64 percent zinc, 0.54 grams per tonne gold and 5.7 grams per tonne silver.
The total supports QMines’ goal of establishing a long-life, centralised production facility and sustainable copper-gold operation in Queensland.
Upcoming Milestones Confirm Development Momentum
QMines will release Develin Creek drilling results and open pit optimisation in Q3 2025. Metallurgical testwork across all projects will inform the final PFS update. A scoping study is underway to assess the combined development potential.
The updated PFS will include a revised mine plan and cost estimates. QMines aims to advance Mount Mackenzie into production planning by early 2026.
