QMines wraps up Mt Mackenzie gold acquisition

• QMines has acquired the Mt Mackenzie gold and silver project in Queensland
• Plans to establish hub and spoke copper-gold production centre near Rockhampton
• Maiden drilling expected to commence ASAP

Special Report: QMines has finalised its acquisition of the Mt Mackenzie project in Queensland, accelerating its goal to establish a multi-deposit copper and gold production hub in the region.

QMines (ASX:QML) already owns the historic Mt Chalmers copper-gold and Develin Creek copper-zinc projects near Rockhampton.

And now, the $2.48 million acquisition of Mount Mackenzie Mines from Resources and Energy Group (ASX:REZ) brings an existing resource of 3.4Mt at 1.18g/t gold and 9g/t silver for 129,000oz gold and 862,000oz silver.

The project is also characterised by shallow mineralisation that is open in all directions.

The company now owns 100% of three advanced-stage copper and gold projects, all located within trucking distance of each other. It positions QMines as one of the leading copper-gold developers on the ASX.

QML is planning to drill at the project ASAP, with the aim of expanding the current resource and generating inputs for a revised geological model and updated mine plan.

Watch: QMines goes deep on Central Queensland copper

Adds significant scale to resource base

QMines says the strategic acquisition adds significant scale to its resource base, enhancing exposure to precious metals, and strengthening its hub-and-spoke development strategy.

“This is a quality asset that fits perfectly with our vision to establish a long-life, multi-asset copper and gold operation in Central Queensland,” QML executive chairman Andrew Sparke said.

“With three projects now under our belt, we are in a strong position to increase production scale, extend mine life and deliver greater value for our shareholders.

“We wish to thank the board of Resources & Energy Group for their co-operation and look forward to advancing Mt Mackenzie as part of our next phase of growth.”

Resources & Energy Group will retain exposure to the upside of the Mt Mackenzie project through its new shareholding in QML of around 7%.

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.