QMines has released an updated mineral resource estimate for the Mount Mackenzie gold and silver project, which it has acquired from Resource & Energy Group.

The company said the new resource supported its growing hub-and-spoke production model in the Rockhampton region, now underpinned by about 20Mt of JORC resources across three projects.

QMines’ flagship Mount Chalmers copper and gold project is located 17km north-east of Rockhampton and it is also advancing the Develin Creek project about 90km north-west of Rockhampton.

The Mount Mackenzie resource now stands at 3.3Mt at 1.40g/t gold and 8.4g/t silver for a total 151,000oz gold and 902,000oz silver.

It includes 2.2Mt at 1.40g/t gold and 9.7g/t silver in the indicated category and 1.1Mt at 1.54g/t gold and 6.6g/t silver in the inferred category.

“This resource upgrade at Mount Mackenzie is a great first step for the Mount Mackenzie project,” QMines executive chairman Andrew Sparke said.

“It not only validates our belief in the quality of this asset, but also grows the resource base as we progress toward regional development.

“With the recent acquisition of the Mount Mackenzie project, we now have the scale, the team and the strategy to deliver a long-life, multi-asset operation producing copper, gold, silver and zinc in one of Australia’s most supportive jurisdictions.”

The acquisition is projected to improve the proposed life of mine at the Mount Chalmers copper and gold project, adding significant gold and silver mineralisation into the Mount Chalmers and Develin Creek global resources.

Resource consultants Hyland Geological and Mining Consultants (HGMC) prepared the updated estimate at the request of QMines as part of the project acquisition due diligence process.

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