QMines Secures $15M Funding and Accelerates Mt Chalmers DFS Progress
QMines Limited has locked in a $15 million strategic funding package with QIC to fully finance its Mt Chalmers Definitive Feasibility Study, while completing a substantial drilling campaign at Mount Mackenzie and launching a major 10,000m drill program at Mt Chalmers.
- $15 million QIC funding fully backs Mt Chalmers DFS
- Completed 73-hole, 9,798m drilling at Mount Mackenzie with resource estimation underway
- Launched largest ever 10,000m multi-rig drilling campaign at Mt Chalmers
- Initial assays confirm extensive gold, copper, silver, and zinc mineralisation
- Cash balance strengthened to $14.4 million at quarter end
Strategic Funding Secures DFS at Mt Chalmers
QMines Limited (ASX:QML) has cemented a $15 million strategic funding package with the Queensland Investment Corporation’s Critical Minerals and Battery Technology Fund, providing full financial backing for the Definitive Feasibility Study (DFS) at its Mt Chalmers Copper Gold Project. This funding comprises a $5 million equity injection and a $10 million royalty investment, underpinning the company’s pathway towards a Final Investment Decision.
The funding boost has enabled QMines to rapidly mobilise DFS consultants across multiple disciplines, including mine planning, geotechnical assessments, metallurgical testing, logistics, and environmental approvals. Geotechnical drilling was completed during the quarter, delivering vital data for pit slope design and hydrogeological modelling.
Mount Mackenzie Drilling Campaign Completes with Promising Mineralisation
QMines wrapped up its maiden drilling program at Mount Mackenzie, completing 73 holes totalling 9,798 metres. This program has confirmed the presence of vertically extensive high-sulphidation epithermal mineralisation, extending beyond historical shallow drilling limits. Notable intercepts include 24 metres at 1.19 g/t gold and 13.3 g/t silver from 71 metres, and 7 metres at 1.89 g/t gold and 34.6 g/t silver from 55 metres at the North Knoll West deposit.
Drilling at the Southern Extension has also confirmed mineralisation continuity between North Knoll and Vein 355, with results such as 9 metres at 1.17 g/t gold and 14.1 g/t silver from 130 metres. The high-grade gold corridor at North Knoll was further extended, highlighted by a 14-metre intercept grading 3.04 g/t gold and 7.2 g/t silver.
With all assay results received, mineral resource estimation has commenced focusing initially on the North Knoll Core area, supported by a comprehensive geological and geochemical review that underpins ongoing drill targeting.
Major Drilling Campaign Underway at Mt Chalmers
Following the quarter, QMines launched its largest drilling campaign to date at Mt Chalmers, targeting over 10,000 metres across five programs. This includes a 39-hole, 7,000-metre Woods Shaft resource drilling program aiming to expand the deposit, alongside metallurgical diamond drilling, geotechnical holes, slag and waste characterisation, and in-pit pontoon drilling beneath the historic flooded pit.
Early results from metallurgical drilling have confirmed both principal mineralisation styles of the Volcanic Hosted Massive Sulphide (VHMS) system at Mt Chalmers. Highlights include 18 metres at 2.7 g/t gold and 1.7% copper from 54 metres, including higher-grade intervals such as 12 metres at 3.8 g/t gold and 2.0% copper.
Robust Balance Sheet and Community Engagement
QMines ended the quarter with a strengthened cash position of $14.4 million, bolstered by the QIC funding and equity proceeds. Operating cash outflows were offset by investing inflows related to the royalty investment and equity issuance.
The company maintained active community and stakeholder engagement, hosting visits from government officials including Minister Roslyn Bates and members of the Queensland Government, underscoring Mt Chalmers’ strategic importance to Queensland’s critical minerals sector. QMines also participated in industry forums and investor events to communicate its development strategy and technical progress.
September Quarter Targets Resource Growth and DFS Milestones
Looking ahead, QMines plans to complete the Woods Shaft drilling program, finalise metallurgical and waste characterisation drilling, and advance geometallurgical testwork including locked cycle tests critical for DFS economic modelling. Mineral resource estimation will continue at Mount Mackenzie and Mt Chalmers, alongside planning for follow-up drilling to resolve structural controls on high-grade shoots.
Land access and acquisition agreements will progress to support resource growth and waste management, while ongoing community and stakeholder engagement will underpin the company’s push towards a development decision.
Bottom Line?
QMines is well-funded and technically advancing its key projects, but upcoming assay results and DFS milestones will be critical to validate resource growth and underpin development decisions.
Questions in the middle?
- Will the ongoing 10,000m drilling at Mt Chalmers materially expand the resource base beyond the current Ore Reserve?
- How will metallurgical testwork outcomes influence processing design and project economics in the DFS?
- What timelines and hurdles remain before QMines can reach a Final Investment Decision for Mt Chalmers?
