QMines (ASX:QML) described as “outstanding” its latest copper drill hits from Develin Creek revealed on Thursday, sending shares 4.6% higher to 9.1cps in the last moments of morning trade.
Reverse circulation drills hit the following results, confirmed by assay lab techs, and flagged on Thursday:
- 31m @ 2.35% copper from 104m depth
- 17m @ 2.88% copper from 106m depth
Trace amounts of gold and zinc were found; as well as ~20g/t silver in both holes. Historical diamond drilling on-site the Develin Creek project, acquired by QMines in 2023, have boasted copper grades over 3%.
Helping to lift the (thinly traded) company’s share price on Thursday is surely the afterglow of Chinese stimulus announcements earlier this week that have pushed copper prices higher.
While we’ve had something like a dozen announcements from China regarding stimulus this year – all of them failing to rouse meaningful momentum – in a post-Fed-cut world, it appears this time, people are more risk-on.
At least for now. Copper prices have climbed over 3% WoW to US$4.45/lb and as at 12pm Sydney time on Thursday Sept 26, the copper price has climbed 22% YoY. It had staged a quiet recovery starting in September; Chinese stimulus news put the commodity back under the spotlight.
Compared to pre-COVID, the electrification metal has posted impressive gains and a number of analyst houses the world over still expect bullish fundamentals to propel copper through the next few years.
Whether QMines can further capitalise on this trend will depend on its ability to continue producing high-grade copper results.
At any rate – QMines Chair Andrew Sparke is risk-on.
“We are especially pleased with these initial results from the first drillholes completed at the at Develin Creek copper project,” Sparke said.
“With the recent announcement of positive metallurgical testwork results along with the imminent acquisition of the remaining interest in the Project, we look forward to completing the drilling program this year and providing an updated mineral resource estimate soon after.”
QML last traded at 9.1cps.
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