QMines Reports 42% Resource Upgrade at Develin Creek, Raises $4M for Expansion
QMines Limited reports a 42% increase in Indicated resources at Develin Creek following maiden drilling, completes a $4 million capital raise, and moves to acquire the Mount Mackenzie gold-silver project, signaling a strategic expansion in Queensland.
- 42% increase in Indicated resources at Develin Creek to 4.2Mt @ 1.07% Cu, 1.16% Zn
- Combined Mt Chalmers and Develin Creek resource base now 15.5Mt @ 0.82% Cu
- Completion of $4 million capital raising to fund 10,000m Stage 2 drilling at Develin Creek
- Agreement executed to acquire Mount Mackenzie gold-silver project with 129,000oz Au and 862,000oz Ag
- Metallurgical testwork at Mt Chalmers completed, results pending in Q3 2025
Resource Upgrade at Develin Creek
QMines Limited (ASX: QML) has delivered a significant boost to its Develin Creek project with the release of final results from its maiden drilling campaign. The 5,064-metre reverse circulation program, focused on the Scorpion and Window deposits, has increased the Mineral Resource Estimate (MRE) by 42%, lifting the Indicated resource to 2.9 million tonnes and the total resource to 4.13 million tonnes grading 1.07% copper, 1.16% zinc, 0.15g/t gold, and 6g/t silver. This upgrade notably enhances the confidence in the resource base, with 70% now classified as Indicated, supporting future open-pit mining plans.
The standout drill intersections at Scorpion include a remarkable 114 metres at 1.64% copper and 0.86% zinc from just 11 metres depth, with high-grade zones within this intercept reaching over 4% copper. These results confirm the deposit's shallow, high-grade nature and its potential to extend the mine life of QMines’ broader portfolio.
Strategic Capital Raising and Drilling Expansion
To capitalize on this momentum, QMines successfully completed a $4 million capital raising in February 2025. The funds are earmarked to support a substantial 10,000-metre Stage 2 drilling program at Develin Creek, designed to expand the resource footprint and upgrade the Sulphide City deposit. This aggressive exploration push underscores QMines’ commitment to resource growth and advancing its development pipeline.
Alongside resource expansion, metallurgical testwork at the Mt Chalmers deposit has been completed, with results expected in the third quarter of 2025. These tests aim to optimize metal recoveries, particularly for gold and silver, which currently report to tailings, potentially enhancing project economics.
Mount Mackenzie Acquisition Adds Gold and Silver Scale
In a strategic move to diversify and scale its asset base, QMines has executed a binding term sheet to acquire 100% of the Mount Mackenzie gold and silver project from Resources and Energy Group Limited (ASX: REZ). The project boasts a current resource of approximately 129,000 ounces of gold and 862,000 ounces of silver, adding significant precious metals exposure to QMines’ predominantly base metals portfolio.
Mount Mackenzie’s high-sulphidation epithermal system features shallow, high-grade mineralization with exploration upside along strike and at depth. QMines plans to integrate this project into its Mt Chalmers mine plan, leveraging the proposed treatment plant in Rockhampton to process the ore, thereby enhancing operational synergies and cost efficiencies.
Financial Position and Outlook
QMines closed the quarter with a robust cash position of $3.8 million and maintains access to $1.5 million in loan facilities. Operating cash outflows reflect ongoing exploration and development activities, consistent with the company’s growth strategy. The company’s management team, led by Executive Chairman Andrew Sparke, remains focused on advancing drilling programs, metallurgical optimization, and securing shareholder approval for the Mount Mackenzie acquisition.
With a combined resource base now totaling 15.5 million tonnes at solid grades across copper, zinc, gold, and silver, QMines is positioning itself as a significant player in Queensland’s copper-gold sector. The coming quarters will be pivotal as drilling results from the Stage 2 program and metallurgical test outcomes at Mt Chalmers are released, alongside progress on the Mount Mackenzie acquisition.
Bottom Line?
QMines is accelerating its resource growth and diversification, setting the stage for a transformative year ahead in Queensland mining.
Questions in the middle?
- How will metallurgical test results from Mt Chalmers influence processing strategies and project economics?
- What are the timelines and key milestones for shareholder approval and integration of the Mount Mackenzie acquisition?
- To what extent can the Stage 2 drilling program at Develin Creek expand resources beyond current estimates?
