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- QMines (QML) agrees to acquire a high-grade copper-zinc project from Zenith Minerals (ZNC) for $4.5 million
- The acquisition is designed to complement QML’s existing QLD-based Mt Chalmers copper-gold project
- QMines is obliged to complete a detailed metallurgy study on the existing resource for Develin Creek
- Should the metallurgical study conducted on Develin ore show zinc grades below 50 per cent, QMines’ overall financial obligation to Zenith Minerals will be decreased in size
- Shares are down 7.69 per cent, trading at 12 cents at 3:21 pm AEST
QMines (QML) has announced its acquisition of a high-grade copper-zinc project from Zenith Minerals (ZNC) to complement its existing QLD-based Mt Chalmers copper-gold project.
Zenith’s former project is called Develin Creek and also sits in Queensland some 90 kilometres to the west of the Mt Chalmers project boundary envelope.
QMines is confident that the acquisition can provide immediate synergies and scale up its portfolio, with the new acreage to be added to the Mt Chalmers pre-feasibility study (PFS) due in the first half of the 2024 calendar year.
Both parties see the arrangement as a win-win, with Zenith today announcing its divestment of Develin Creek as Zenith pivots to lithium exploration.
QMines is to acquire a 100 per cent stake in Develin for $4.5 million in cash and shares with work commitments attached.
The company is obliged to complete a detailed metallurgy study on the existing resource for Develin Creek, which is in the ‘inferred’ category.
This will likely follow QMines’ completion of its obligation to complete 500 metres of diamond drilling at Develin.
QMines geotechs are planning to bring in diamond drill rigs as well as reverse circulation (RC) rigs to infill drill what is already known to exist at Develin and probe the potential for undiscovered mineral extensions.
Should the metallurgical study conducted on Develin ore show zinc grades below 50 per cent, QMines’ overall financial obligation to Zenith Minerals will be decreased in size.
With its PFS, Qmines intends to establish a bankable case for the company’s ambition to develop a stand-alone mining operation outright.
QMines shares were down 7.69 per cent, trading at 12 cents at 3:21 pm AEST.
