Play the Hits: Sulphide City copper hits outta sight, quite alright for QMines

• QMines continues to build its case for a copper hub around its Mt Chalmers operation near Rockhampton
• New drill hits from 10,000m campaign including 16m at 2.29% CuEq will back a resource upgrade at the Sulphide City deposit at Develin Creek
• PFS on track for completion on expanded project in H2 2026

Special Report: QMines is on track to upgrade the resource at its Sulphide City deposit ahead of a pre-feasibility study into a new copper hub near the Queensland city of Rockhampton.

New drill results have given a window into the geometry and mineralisation at the high-grade deposit, part of the Develin Creek project.

It’s a satellite for QMines (ASX:QML) Mt Chalmers project, where a PFS is due in the second half of 2026, well timed to coincide with an anticipated jump in copper prices as the market for the energy transition metal tightens.

So far, 42 holes have been completed for 7890m out of a 10,000m diamond drill program at Sulphide City, a high-grade source of copper and precious metals in volcanogenic massive sulphide mineralisation.

Highlights reported on Monday include:

• 16m at 2.29% copper equivalent from 135 metres, including 4m at 4.28% from 138 metres;
• 11m at 2.39% CuEq from 88m, including 7m at 3.22% from 92m;
• 25m at 1.48%CuEq from 138m;
• 16m at 1.4% CuEq from 164m;
• 9m at 2.38% CuEq from 108m;
• 5m at 2.34% CuEq from 166m; and
• 7m at 1.7% CuEq from 144m.

Another four holes for 583m of diamond core have already been drilled, with QML expecting results to be released once received.

Drilling blitz

Sulphide City is just the start of the newsflow, with QMines putting the drill bit to work across its Queensland copper and gold projects.

Maiden drilling at the Mt Mackenzie gold and silver project is drawing closer as well.

“The Develin Creek drilling program is progressing well with the company getting a clearer understanding of the mineralisation and the geometry of the high-grade Sulphide City copper-zinc deposit,” QMines executive chair Andrew Sparke said.

“The results continue to confirm the Develin Creek project as a significant source of material for the planned Mount Chalmers processing plant. On completion of the drilling program, we will update the resource model and run an optimisation study for Sulphide City.

“The maiden drilling program at the Mount Mackenzie high-grade gold and silver project is scheduled to commence in October with Mount Mackenzie being a shallow, high-grade gold deposit. Significant site work is currently underway to prepare for drilling operations, and we look forward to updating shareholders once drilling starts.”

More from QMines: : Early success at Sulphide City

It’s a good time to be exploring for both copper and gold. Three-month copper prices topped US$10,000/t on the LME last week as traders anticipate shortages of the red metal.

Gold has lifted to around US$3650/oz, touching new records as investors position for expected interest rate cuts in the US this week.

Against that backdrop, QMines has pursued a regional strategy to bolster the value of its Mt Chalmers project.

The Sulphide City and Scorpion resources at Develin Creek, combined, contain 4.13Mt at 1.01% copper, 1.16% zinc, 0.15g/t gold and 6g/t silver, 56% of that in the indicated category.

Open pit mine designs and mine plans are underway at the Scorpion-Window pit, with Sulphide City to follow once drilling is complete, with an upgraded resource and optimisation study to come after the results are all in.

A PFS incorporating only the Mt Chalmers mine last year suggested the project would deliver 65,000t of copper, 160,000oz gold, 30,600t zinc, 1.8Moz silver and 583,000t pyrite over a 10.4 year life, with a capital cost of $191m and life of mine free cash flow of $636m.

That study highlighted a NPV of $373m and an IRR of 54%. A new PFS will incorporate the Develin Creek and Mt Mackenzie projects.

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.