QMines reveals robust financials and growth potential at Mt Chalmers
May 01, 2024 at 04:11 pm EDT
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QMines Ltd (ASX:QML) executive chairman Andrew Sparke sits down with Jonathan Jackson in the Proactive studio to discuss the company milestone Pre-Feasibility Study (PFS) for its flagship Mt Chalmers project, located 17km north-east of Rockhampton, Queensland. The PFS evaluates the commercial viability of a standalone mining operation focusing exclusively on the Mt Chalmers Resource, with the potential addition of resources from Develin Creek (Sulphide City & Scorpion) and Woods Shaft providing further growth opportunities. The study proposes a three-stage open pit mining operation with an onsite processing plant designed by COMO Engineers to handle one million tonnes of ore per annum (1Mtpa). The processing plant will produce copper/gold, zinc/silver, and pyrite/gold concentrates using standard crushing, grinding, and flotation techniques. The flow sheet accounts for two types of ore material—Volcanic Hosted Massive Sulphide (VHMS) and Stringer material, with a planned throughput composition of 30% VHMS and 70% Stringer. Key financial metrics from the PFS indicate a robust outlook for the Mt Chalmers project: · Capital cost estimate: A$191 million · Initial mine life: 10.4 years · Life of mine revenue: A$1.64 billion · Life of mine free cash flow: A$636 million · Net Present Value (NPV8): $373 million · Internal Rate of Return (IRR): 54% The estimated production for the initial life of the mine includes 65,000 tonnes of copper, 160,000 ounces of gold, 30,600 tonnes of zinc, 1.8 million ounces of silver, and 583,000 tonnes of pyrite. Additionally, a maiden ore reserve of 9.6 million tonnes (Proved and Probable) has been declared. The PFS concludes that the Mt Chalmers project is technically achievable and commercially viable, presenting an opportunity for QMines to establish a significant presence in the critical metals sector. The project’s attractive risk-return profile and clear potential for enhancing returns through production rate increases and life extension further underscore its strategic value.
Contact Details
Proactive Investors
Jonathan Jackson
+61 413 713 744
jonathan@proactiveinvestors.com
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QMines Limited is an Australia-based exploration and development company. The Company owns four advanced copper and gold projects located in Queensland. The Companyâs projects include Mt Chalmers, Silverwood, Warroo and Herries Range. The Companyâs flagship project, Mount Chalmers, is located 17 kilometers (km) Northeast of Rockhampton. The Silverwood Project is located approximately 15 km South of Warwick in Queensland and consists of 234 square kilometers (km2) of tenure. The Warroo project is located approximately 50 km West of Stanthorpe in Queensland. The project consists of 216 km2 of tenure that includes the historic Warroo copper gold mine. The Herries Range project, which comprises 330 km2 of tenure. The Herries Range gold projects contain an abundance of gold mineral occurrences, as both high-grade, small, hard rock workings and spread alluvial gold workings. The projects are prospective for large scale intrusion related gold deposits and sediment-hosted gold deposits.