QMines Ltd (ASX:QML) has snapped up another land package to advance its development strategy across the Mt Chalmers copper and gold play in Queensland.
The ASX-lister, which is looking to become Australia’s first zero-carbon copper and gold developer, executed a contract to acquire a further 50 acres of freehold land next to its flagship Mt Chalmers mine.
This move brings QMines’ landholding in the region up to 219 acres, with tenure spread across four freehold rural properties neighbouring the historic mine.
Situated at the heart of Mt Chalmers, this high-grade, multi-element mine produced 1.2 million tonnes of resource at 3.6 g/t gold, 2.0% copper and 19 g/t silver between 1898 and 1982.
The broader Mt Chalmers project boasts a JORC-compliant inferred resource of 3.9 million tonnes at 1.15% copper, 0.81 g/t gold and 8.4g/t silver.
Apart from its acquisition strategy, QMines also plans to release further drilling results from its ongoing 30,000-metre drilling program, while downhole electromagnetics are already underway on several holes.
This all underpins a resource upgrade that’s planned for the current quarter.
“Bodes well for planned development strategy”
QMines executive chairman Andrew Sparke spoke to the strategic acquisition and its implications.
“The acquisition of a further 50 acres adjacent to the Mt Chalmers mine is a positive development for our company.
“The parcel of land covers part of the southern open pit and resource at Mt Chalmers. The acquisition will provide access for further resource extension drilling and bodes well for our planned development strategy.”
The latest buy
QMines kicked off its land acquisition program in April this year when it purchased its first 126-acre parcel, which included an ‘off-grid’ site office and accommodation facilities.
These facilities are now utilised for staff and contractor accommodation during drilling operations.
Fast forward to today, and the company’s latest acquisition is not considered financially material given its current position and net asset base.
In its June quarter report, QMines revealed it had just over $9 million in the bank, with the cash expected to support operations at a sustained rate of spend for almost 18 more months.
Looking ahead, the company maintains it’ll continue to assess its acquisition opportunities and keep the market abreast of further developments.
Forward work program
In the meantime, drilling continues at QMines’ Mt Chalmers gold and copper play with two rigs turning the soil as part of a 30,000-metre campaign.
While results continue to trickle in, downhole electromagnetics is underway on several of the drill holes.
Those assays will be released once the program completes.
Simultaneously, QMines will execute an expanded soil sampling program over the property, while a 1,800-line-kilometre heli-electromagnetic survey will take place in the first half of next year.
The company hopes the program will help it pinpoint future drill targets as it continues to develop and expand the Mt Chalmers project ahead of a resource upgrade this quarter.