QMines Limited has boosted the Mount Mackenzie gold and silver resource by 32% in gold ounces, with 70% now classified as Indicated, following a comprehensive 73-hole drilling campaign that enhanced geological confidence and resource scale.
- 32% increase in contained gold to 170,000oz
- 70% of gold resource now Indicated category
- Resource upgrade based on 73-hole, 9,798m drilling campaign
- Improved geological model with defined mineralisation controls
- Deposit remains open along strike and at depth
Significant Gold Resource Growth at Mount Mackenzie
QMines Limited (ASX:QML) has delivered a substantial upgrade to its Mount Mackenzie gold and silver project in Central Queensland, increasing the contained gold resource by 32% to 170,000 ounces. The update also lifts contained silver by 30% to 1.12 million ounces. Notably, about 70% of the gold is now classified as Indicated, a marked improvement in confidence that strengthens the foundation for future mining studies.
This Mineral Resource Estimate (MRE) update incorporates results from QMines’ recent 73-hole, 9,798-metre drilling campaign completed in 2025-2026, focusing primarily on the North Knoll deposit. The drilling has validated historical data, increased drill density, and refined the geological model, revealing clear structural and alteration controls on gold distribution. The deposit remains open both along strike and at depth, offering further upside potential.
Enhanced Confidence Through Indicated Classification
Compared with the May 2020 estimate by Resources and Energy Group Limited, the July 2026 MRE shows a 53% increase in tonnage and a 32% rise in contained gold ounces, despite a slight decrease in average grade due to a broader mineralised envelope. The share of Indicated Mineral Resources has surged by approximately 82% in contained gold, now representing 120,000 ounces out of the total 170,000 ounces. This shift reflects the success of QMines’ modern exploration techniques, including rigorous QA/QC protocols and detailed geological logging.
The improved Indicated classification, supported by nominal drill spacing of 20 to 25 metres, provides a higher confidence resource base essential for advancing mining studies, economic evaluations, and development planning. The deposit’s mineralisation is characterised by a shallow enriched gold zone overlaying deeper structurally controlled veins, a relationship now better understood thanks to the recent drilling.
Geological Insights and Resource Modelling
The updated geological interpretation identifies Mount Mackenzie as a high-sulphidation epithermal gold-silver system within a silica-altered lithocap. Gold mineralisation is preferentially associated with advanced argillic and silica-pyrite alteration zones, often concentrated in structurally prepared breccias and veins. The drilling campaign confirmed that gold distribution is not random but controlled by alteration and structural permeability, with advanced argillic alteration emerging as a key vector for higher grades.
Estimation was performed using three-dimensional geological modelling and Ordinary Kriging, incorporating both historical and recent drilling data. The block model uses parent blocks sized to reflect drill spacing and mineralisation geometry, supporting potential selective open-pit mining with approximately 2.5-metre flitch heights. Bulk density measurements have been expanded, enhancing tonnage accuracy.
Implications for Development and Next Steps
While the resource upgrade significantly improves the project's technical foundation, no new Ore Reserve or detailed mine design has been completed yet. The updated MRE supports future pit optimisation, metallurgical testwork, mine scheduling, and economic evaluation. Historical metallurgical testwork indicates promising gold recoveries, particularly from oxide and transitional material, but further testwork is required to confirm processing parameters.
South West Slopes, another deposit within the project, was not drilled in the recent campaign and remains a target for future resource growth. QMines plans further drilling to test deeper extensions and refine the structural interpretation, especially at North Knoll West and the Vein 355 high-grade shoot.
This upgrade follows QMines’ recent strategic funding and drilling progress at its broader portfolio, including the Mt Chalmers copper-gold project, positioning the company for accelerated development activities across its assets. The enhanced resource confidence at Mount Mackenzie will be a critical input into forthcoming feasibility studies and capital allocation decisions.
Bottom Line?
QMines’ Mount Mackenzie resource upgrade sharpens the project's profile with a larger, higher-confidence gold inventory, but economic viability hinges on upcoming technical studies and mine planning.
Questions in the middle?
- How will QMines integrate the upgraded resource into its broader development timeline?
- What metallurgical challenges might arise given the mix of oxide and fresh sulphide material?
- To what extent can further drilling at depth expand the resource beyond current limits?