QMines Strengthens Balance Sheet Amid Resource Expansion and Development Progress

Strategic Acquisition Bolsters Resource Portfolio

QMines Limited (ASX, QML) marked a significant milestone in the September 2025 quarter by completing the acquisition of the Mt Mackenzie gold-silver project, located approximately 120km northwest of its Mt Chalmers hub in Central Queensland. This high-grade asset adds a JORC 2012 Mineral Resource Estimate of 3.3 million tonnes grading 1.40 grams per tonne gold and 8.4 grams per tonne silver, representing 151,000 ounces of gold and 902,000 ounces of silver. Notably, 67% of this resource is now classified as Indicated, enhancing confidence in the deposit’s economic potential.

The acquisition, valued at $2.485 million through a combination of cash and shares, also brought Resources & Energy Group Ltd into QMines’ shareholder register as a substantial 7% holder. This strategic move strengthens QMines’ position in the Central Queensland copper-gold corridor and complements its existing assets.

Drilling Success at Develin Creek Copper-Zinc Project

Alongside the acquisition, QMines advanced its exploration program at the Develin Creek Copper-Zinc Project, approximately 90km northwest of Rockhampton. The company completed 1,802 metres of drilling during the quarter, part of a broader 7,819 metres drilled since May 2025 targeting the Sulphide City deposit. Results continued to confirm high-grade copper and zinc mineralisation, with standout intersections including 16 metres at 2.29% copper equivalent and 11 metres at 2.39% copper equivalent.

This drilling campaign aims to upgrade a significant portion of the existing Inferred resource to the higher-confidence Indicated category, a critical step for future mine planning and resource optimisation. Final assay results are pending, with an updated Mineral Resource Estimate expected later in 2025.

Progress on Scoping and Pre-Feasibility Studies

QMines also reported progress on scoping and pre-feasibility studies for its broader portfolio. At the Scorpion-Window deposit adjacent to Develin Creek, a scoping-level pit optimisation confirmed a production target of 930,000 tonnes at 1.73% copper equivalent, with 98% of the material classified as Indicated. Metallurgical testwork demonstrated strong recoveries of copper and zinc, supporting integration into the Mt Chalmers Processing Hub.

The Mt Chalmers hub itself is advancing towards a 2 million tonnes per annum processing capacity, incorporating a new Carbon-in-Leach circuit to enhance gold and silver recovery alongside copper-zinc flotation. The updated pre-feasibility study remains on track for delivery in the second half of 2026.

Capital Raising Strengthens Financial Position

To underpin its accelerated exploration and development activities, QMines successfully raised $7.5 million through a placement at $0.055 per share, complemented by a fully underwritten $1.5 million Share Purchase Plan. These funds are earmarked for drilling programs, land acquisition to de-risk operations, debt repayment, and general working capital. The capital raising was well supported by both existing and new institutional investors, reflecting strong market confidence in QMines’ growth strategy.

Executive Chairman Andrew Sparke and Non-Executive Director Peter Caristo highlighted the company’s exploration successes and strategic direction at the Noosa Mining Conference, reinforcing QMines’ commitment to building a multi-asset, long-life copper and gold operation in Central Queensland.