Investors back QMines’ growth strategy, injecting $2m to accelerate drilling efforts
Link copied to
QMines has witnessed strong support from investors, completing a fully subscribed placement that has boosted the company’s coffers to $3m to accelerate exploration and development at the high-grade Mt Chalmers copper-gold mine in Queensland.
QMines’ (ASX:QML) management is leading from the front, with the chairman and GM of operations putting in their own hard earned cash, which has prompted a strong response from investors for the company’s recent capital raise.
QMines has achieved several milestones in quick succession at its Mt Chalmers project since listing in May last year, including having already delivered two resource upgrades and a third one on track for release in the second half of the year.
This has been enhanced by ever increasing grades and width at Mt Chalmers, with QMines just last week announcing a top hit of 37m at 2.9% copper equivalent from 118m, including 4m at 17.3% copper equivalent from 145m in the recent round of drilling.
QMines is progressing its 30,000m exploration plan quickly, having already completed 10,581m of RC and diamond drilling so far and delivering results a lot quicker than most.
The company purchased a reverse circulation drill rig earlier this year, which is increasing the speed of drilling while also significantly reducing the cost.
This recent drilling has demonstrated significant growth potential at Mt Chalmers, which currently hosts a copper equivalent resource of 5.8Mt at 1.7% copper equivalent for 101,000 tonnes of contained copper equivalent. Nearly 80% of that resource is in the higher confidence Measured and Indicated JORC categories.
Demonstrating the exploration upside, QMines has defined three exploration targets totalling between 4.8 million tonnes and 6.8 million tonnes and four large copper and zinc soil anomalies. That’s seven potential regional repeats of Mt Chalmers.
The additional cash raised from the placement will go towards accelerated exploration including drilling, geophysics and resource modelling as well as fund further metallurgical test work, pit optimisation and a scoping study.
Earlier metallurgical test work has already shown Mt Chalmers can achieve recoveries as high as 97% copper and 87% gold.
This article was developed in collaboration with QMines, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.