QMines Advances Drilling and Feasibility with $15M QIC Funding Boost

Bonanza Gold and Silver Confirmed at Mount Mackenzie

QMines Limited (ASX:QML) has delivered a flurry of high-grade assay results from its maiden drilling campaign at the Mount Mackenzie gold-silver project in Central Queensland. The March quarter saw 6,922 metres drilled across North Knoll, the Western Extension, and Vein 355, with standout intercepts including 16 metres at 19.35 g/t gold and 27.8 g/t silver from just 8 metres depth, highlighted by a spectacular 1-metre interval grading 108 g/t gold within that zone.

The drilling program, combining RC and diamond methods, has delineated multiple stacked gold-silver zones and identified copper-bearing high sulphidation mineralisation at depth, reinforcing Mount Mackenzie’s classification as a lithocap-style epithermal system with potential porphyry copper-gold feeders yet to be tested by deeper drilling. This evolving geological picture aligns with the company’s interpretation of a broad hydrothermal footprint and supports further exploration targeting. The recent assays extend the high-grade gold corridor at both North Knoll and Vein 355, with ongoing results confirming the system’s structural complexity and mineralisation continuity. These developments build on earlier findings of visible gold in drill core and the identification of five new near-surface targets from reprocessed IP data, underscoring broad zones of high-grade gold and bonanza gold-silver zones.

Develin Creek Resource Upgrade Bolsters Expansion Plans

While drilling at Develin Creek was minimal during the quarter, the company announced a significant 14% increase in its Mineral Resource Estimate, now standing at 4.70 million tonnes grading 0.94% copper, 1.00% zinc, 0.15 g/t gold, and 5.7 g/t silver, with approximately 90% of the resource classified as Indicated. This upgrade enhances confidence in the deposit’s size and grade continuity, providing a robust foundation for upcoming optimisation studies and integration into the broader Mt Chalmers hub strategy.

The improved resource classification supports plans for Phase 2 expansion, including targeted infill drilling, metallurgical variability assessments, and underground development optimisation. The enhanced resource base at Develin Creek complements the company’s regional growth ambitions and its strategy to build a sustainable copper and gold production platform in Queensland. The resource upgrade follows a prior announcement highlighting a 46% increase in Indicated Resources, setting the stage for accelerated development activities. This milestone reflects the company’s methodical approach to resource expansion and technical refinement at Develin Creek boosts Develin Creek Indicated Resource.

Mt Chalmers DFS Advances with Multi-Disciplinary Studies

QMines has commenced its Definitive Feasibility Study (DFS) at the Mt Chalmers copper-gold project, progressing several technical workstreams crucial for a Final Investment Decision. Fieldwork during the quarter focused on geotechnical drilling, environmental baseline surveys, hydrological monitoring, mineragraphy, and geological modelling improvements. These activities underpin the engineering design, approvals process, and optimisation of the proposed 1 Mtpa base case operation.

The DFS builds on a 2024 Pre-Feasibility Study that yielded a Net Present Value of A$373 million and a 54% internal rate of return over a 10.4-year mine life. The current phase aims to refine these metrics and de-risk the project through comprehensive data collection and analysis. Groundwater monitoring bores and flora surveys have been established to support environmental approvals, while geotechnical data will inform pit and infrastructure design. These efforts are integral to advancing Mt Chalmers toward development, with the company targeting a staged production ramp-up in line with market and regulatory conditions.

Balance Sheet Strengthened by $15 Million QIC Investment

Financially, QMines has fortified its position with a strategic $15 million funding package from the Queensland Investment Corporation’s Critical Minerals and Battery Technology Fund. The deal, announced post-quarter, combines equity and royalty funding structured to fully support the company through DFS completion and toward a Final Investment Decision for Mt Chalmers.

This injection not only underscores institutional confidence in QMines’ projects but also enables the repayment of $1 million in outstanding loans, simplifying the capital structure ahead of development. The funding arrangement includes a $5 million equity component and a $10 million investment for a 2% net smelter return royalty, aligning investor interests with project success. This financial boost positions QMines well to navigate the technical and regulatory milestones ahead as it pursues its goal of becoming Queensland’s next copper and gold producer.

Looking Ahead to the June Quarter

Looking forward, QMines plans to advance the Mt Chalmers DFS with continued geotechnical, hydrological, environmental, mining, processing, and infrastructure studies. The company will also complete processing and interpretation of remaining Mount Mackenzie drill assays and evaluate Phase 2 exploration targeting deeper lithocap feeder positions. Expansion planning at Develin Creek will proceed with geotechnical and metallurgical studies gearing up.

Engagement with landholders, consultants, and key stakeholders will remain a priority as QMines steers Mt Chalmers toward development and seeks to capitalise on the growing demand for critical minerals. The combination of technical progress and financial backing sets a clear path, though the timing and success of approvals and feasibility outcomes will be critical to watch in the coming months.