QMines Ltd (ASX:QML) plans to accelerate its 2022 exploration program following two resource updates at its flagship Mt Chalmers asset in Queensland.
The company has purchased an RC drill rig, booster and auxiliary compressor truck, rod truck and support vehicles to advance its campaign at the copper, gold and silver mine.
QMines has also upgraded its base for operations at Mt Chalmers. The new workshops will include a 70,000-litre renewable fuel storage facility, a 10,000-litre rainwater system and a 10-kilawatt solar power system.
The explorer will operate on an 80:20 renewable fuel blend, reducing carbon emissions from drilling by an initial 20%.
Preparations are underway to kick off drilling at Mt Chalmers’ Woods Shaft prospect, an existing exploration target not currently included in the Mt Chalmers resource.
Achievements to date
Since acquiring the Mt Chalmers mine in December 2020, QMines has delivered:
- Two resource upgrades, representing a 38% increase in the maiden resource and a 78% increase in the measured and indicated categories; and
- Three exploration targets at Woods Shaft, Botos and Mt Warminster.
A third resource upgrade is expected in the first half of 2022.
Following its 2021 drill program, QMines has identified several priority resource growth targets which will become the focus of drilling activities over the coming quarters.
These targets include the aforementioned Woods Shaft, Mt Chalmers Mine, Tracker 3 and Mt Chalmers North prospects.
Low-emission drilling strategy
QMines previously conducted an internal carbon audit as part of the government endorsed Climate Active certification.
Following this review, the company identified diesel usage for drilling as its largest source of future emissions.
In order to mitigate this, QMines has purchased an RC drill rig and support trucks and established a significant base of operations at Mt Chalmers.
This paves the way for the effective use of renewable fuels — a green energy solution — for QMines’ future drilling operations.
With costs and inflation rising, and drilling activity representing the largest annual expense to the company, there is also a strong economic rationale for this purchase.
As a result, QML believes this acquisition will go a long way to reduce these cost pressures and maximise the efficient use of capital.
The RC rig is mounted on a short wheel-base truck which will allow the company to access drilling targets in more remote areas at a significantly lower cost per metre drilled.
The fully kitted out rig and associated support trucks will have the capacity to drill in excess of 250 metres in depth.
The total consideration for the equipment comprised $1 million in cash and $600,000 in QMines shares.
Executive chairman Andrew Sparke said: “The purchase of the drill rig and associated equipment allows QMines to accelerate our planned exploration and resource growth initiatives, reduce costs in a highly inflationary environment and delivers on our commitment to reduce carbon emissions.
“I want to thank our staff for the tremendous efforts over the holiday period to set up the upgraded base of operations. We are excited about the year ahead and are confident that this project will yield results.”
What’s next?
Ahead of its proposed resource upgrade in the current half, QMines plans to:
- Release assays from the planned 30,000metre-plus drilling program, with two rigs to commence work shortly;
- Complete downhole electromagnetics (EM) on several holes already drilled with results to be released upon completion;
- Execute an expanded soil sampling program utilising Niton Portable pXRF, delivering realtime soil geochemical data for future drill targeting; and
- Kick off a 1,800-line-kilometre Heli-EM survey in the first half to identify further drill targets.