QMines builds CQ copper plans with Develin Creek deal

QMines has snapped up the Develin Creek project, about 90km west of its flagship Mount Chalmers copper site, in a $4.5 million deal. Zenith Minerals' Develin Creek copper-zinc project has a resources of 4.9 Mt grading at 1.2 per cent copper, 1.4 per cent zinc, 0.2 g/t gold and 7 g/t silver. The combined resources of the Rockhampton region projects generate the scale required for potential development, according to QMines. Develin Creek data will be incorporated into the prefeasibility study the company is carrying out for mining operations at Mount Chalmers. Results are expected in the first half of 2024. “Since listing in only May 2021, the QMines team has rapidly grown its copper resources at the Mount Chalmers project," QMines managing director Andrew Sparke said. "We always believed that the Develin Creek asset was very complementary and would provide the scale required to progress the Mount Chalmers project towards sustainable copper production. “We wish to thank the Zenith Board for sharing our vision of a larger, combined copper business and for their patience and assistance with the transaction." Related: Zenith Pumps Up The Volume At Develin Creek The sale provides Zenith with immediate cash and allows for the group to maintain its focus on developing its lithium assets. "This has been a deliberate reallocation of our resources where we believe we can maximise value for our shareholders," Zenith executive chair David Ledger said. The deal includes: An up-front payment to Zenith of $1.2 million cash and $1 million worth of QMines shares for a 51 per cent stake. Within 12 months, QMines must complete 500m of diamond drilling and a detailed metallurgical study on the existing Develin Creek Inferred Mineral Resource. At 12 months, QMines must pay a further $1.3 million cash and issue another $1 million worth of shares to Zenith for an additional 49 per cent interest. QMines has completed a fully subscribed $3 million placement to partly fund the Develin Creek project acquisition and continued exploration and development works. It included participation by Mr Sparke, who subscribed for a further $100,000 worth of shares. The Mount Chalmers project has a measured, indicated and inferred resource of 11.86Mt at 1.22 per cent copper equivalent for 144,700t CuEq. The Develin Creek resource of 4.9Mt at 1.79 per cent CuEq for 87,173 tonnes CuEq covers the Sulphide City, Scorpion and Window copper–zinc deposits. The estimate does not include the massive copper-zinc sulphide mineralisation identified at Snook and other prospects to the south, also within the Develin Creek project.

QMines builds CQ copper plans with Develin Creek deal

Industry Queensland

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