Mount Mackenzie Gold-Silver Resource Upgrade Strengthens QMines' Queensland Hub-and-Spoke Strategy
QMines Limited has announced a significant resource upgrade at its Mount Mackenzie gold and silver project, delivering a 16% increase in gold resources with 67% now in the higher-confidence Indicated category. The resource now stands at 3.3 million tonnes at 1.40g/t gold and 8.4g/t silver, containing 151,000 ounces of gold and 902,000 ounces of silver. This latest development further enhances the Mount Mackenzie gold-silver project by QMines Ltd as a cornerstone asset in the company's growing portfolio.
Strategic Acquisition Expands Regional Development Potential
The Mount Mackenzie gold-silver project, located approximately 140km northwest of Rockhampton in Queensland, represents a strategic addition to QMines' growing Central Queensland portfolio. The company recently acquired the project from Resource & Energy Group, with the updated resource estimate validating the acquisition's value and growth potential.
The project's proximity to QMines' other assets—particularly the Develin Creek project just 45km to the southeast—positions it as a key component in the company's hub-and-spoke development model. This regional strategy now encompasses approximately 20 million tonnes of JORC Resources across three 100%-owned projects. Furthermore, the Mount Cannindah Expansion in the same region demonstrates the significant mineral potential of this part of Queensland.
"This resource upgrade at Mt Mackenzie is a great first step for the Mount Mackenzie project. 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 Mt 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." – Executive Chairman Andrew Sparke
Resource Details: Quality and Growth Potential
The updated Mineral Resource Estimate includes:
| Classification | Tonnes (Mt) | Gold (g/t) | Silver (g/t) | Gold (koz) | Silver (koz) |
|---|---|---|---|---|---|
| Indicated | 2.2 | 1.40 | 9.7 | 99.0 | 686.0 |
| Inferred | 1.1 | 1.54 | 6.6 | 52.2 | 216.2 |
| Total | 3.3 | 1.40 | 8.4 | 151.2 | 902.2 |
The resource remains open along strike and at depth, providing significant exploration upside. QMines has already designed a maiden drilling programme to confirm and expand the current resource, which could further enhance the project's value. Similar to other companies in the region that have identified high-priority gold targets near existing discoveries, QMines is well-positioned to grow its resource base.
Understanding High-Sulphidation Epithermal Systems
The Mount Mackenzie gold-silver project represents a high-sulphidation epithermal gold-silver system, a specific type of mineral deposit formed when hot, acidic fluids circulate near volcanic centres. These systems typically create distinctive alteration patterns and can host significant precious metal mineralisation.
At Mount Mackenzie, the deposit comprises two principal mineralised zones—North Knoll and Southwest Slopes—with gold and silver occurring within volcanic-derived rocks including andesitic to rhyolitic flows, tuffs, and breccias. The mineralisation styles include massive sulphide replacement, silica-sulphide breccias, vein-hosted stockwork, and disseminated mineralisation.
The deposit's geological setting within the Connors Magmatic Arc places it in one of Queensland's most productive epochs for gold mineralisation, enhancing its prospectivity and regional significance. In fact, recent high-grade gold discovery announcements in similar geological settings highlight the potential value of these epithermal systems.
Future Plans and Development Timeline
QMines plans to incorporate the Mount Mackenzie gold-silver project by QMines Ltd into its broader development strategy centred around the Mount Chalmers processing hub. Key upcoming activities include:
- Completion of a maiden drilling programme to confirm and expand the current resource
- Further metallurgical testing to optimise recovery parameters
- Integration of Mount Mackenzie into the Mount Chalmers mine plan
The company envisions treating ore from Mount Mackenzie at the proposed Mount Chalmers processing plant, leveraging existing infrastructure and creating operational synergies between its portfolio assets.
QMines' Growing Central Queensland Resource Base
With the addition of Mount Mackenzie, QMines has significantly strengthened its resource inventory across its three 100%-owned Queensland projects:
| Project | Resource Category | Tonnes (Mt) | Cu (%) | Au (g/t) | Zn (%) | Ag (g/t) |
|---|---|---|---|---|---|---|
| Mt Chalmers | Measured, Indicated & Inferred | 11.3 | 0.75 | 0.42 | 0.23 | 4.60 |
| Develin Creek | Indicated & Inferred | 4.13 | 1.07 | 0.15 | 1.16 | 6.02 |
| Mt Mackenzie | Indicated & Inferred | 3.35 | – | 1.40 | – | 8.40 |
| Total | ~20 |
This growing resource base strengthens QMines' position as a significant player in Queensland's resource sector and provides multiple development pathways to create shareholder value. Additionally, diversification into other minerals, as seen with some companies pursuing titanium discovery investment, highlights the varied mineral potential in Queensland.
Why Investors Should Follow QMines
QMines represents a compelling investment proposition for several key reasons:
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Resource Growth Trajectory: The company continues to expand its resource base through both strategic acquisitions and exploration success, as demonstrated by the Mount Mackenzie gold-silver project upgrade.
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Integrated Development Strategy: The hub-and-spoke model centred around Mount Chalmers offers potential operational efficiencies and capital cost advantages.
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Diversified Commodity Exposure: With significant gold, silver, copper, and zinc resources, QMines offers investors exposure to both precious and base metals markets.
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Favourable Jurisdiction: Queensland provides a stable, mining-friendly environment with established infrastructure and regulatory frameworks.
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Experienced Management: The company's leadership team brings substantial expertise in resource development and mining operations.
As QMines advances its Central Queensland assets toward development, investors have multiple potential catalysts to monitor, including further resource upgrades, drilling results, and progress toward production decisions. Recent results showing high-grade gold at Fortitude North and other Queensland projects demonstrate the ongoing discovery potential in the region, which could drive significant value creation for QMines in the coming months.
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