Strategic Acquisition Strengthens QMines' Queensland Footprint
The Mt Mackenzie project, located approximately 140km northwest of Rockhampton and just 45km from QMines' existing Develin Creek copper-zinc project, represents a significant expansion of the company's critical minerals portfolio in one of Australia's most prospective mining regions.
The $2.485 million acquisition comprises $1 million in cash and the issuance of 33 million QMines shares at $0.045, subject to a 12-month voluntary escrow. Shareholders have demonstrated strong support for the transaction, with over 93% of votes cast in favour at the Company's Extraordinary General Meeting in April.
QMines Executive Chairman Andrew Sparke commented: "We are delighted to confirm our intention to complete the Mount Mackenzie gold and silver project acquisition. The project is a highly strategic and value-accretive addition to our asset base, increasing gold and silver exposure and providing operational synergies with our Mt Chalmers and Develin Creek projects."
Impressive Historical Drill Results Target for Verification
Planning is already underway for a maiden drilling program targeting resource expansion and verification of high-grade historical results including:
| Historical Drill Intercepts |
|---|
| 36m @ 4.4g/t gold & 25g/t silver |
| 26m @ 12.78g/t gold & 34g/t silver |
| 12m @ 14.93g/t gold & 61g/t silver |
| 28m @ 3.89g/t gold & 25g/t silver |
The resource remains open in multiple directions, providing significant exploration upside potential. The project includes two parcels of freehold land and two granted tenements (EPM 10006 and MDL 2008), supporting rapid development and streamlined permitting.
Financing Secured on Favorable Terms
To fund the QMines Mt Mackenzie acquisition, the company has secured a $1 million convertible note from one of its largest shareholders, with a further $500,000 draw-down facility available upon request. This approach mirrors strategies used by other Queensland-focused developers like Metarock Group, who have similarly secured funding to advance their gold projects. Key terms include:
- Conversion price: $0.045 per share (30% premium to 30-day VWAP)
- Interest rate: 15% per annum
- Maturity: 3-year term with early redemption permitted
- Security: Secured by mortgage over Mt Mackenzie tenements
This financial support demonstrates strong shareholder confidence in QMines' growth strategy and execution capabilities.
Understanding JORC Resources: What Investors Should Know
For investors new to the mining sector, the JORC Code (Joint Ore Reserves Committee) is Australia's standard for reporting exploration results, mineral resources, and ore reserves. The classification system provides confidence levels about the geological knowledge and technical/economic evaluation of a resource.
JORC resources are classified into three categories of increasing geological confidence:
- Inferred: Lowest confidence level, based on limited sampling
- Indicated: Reasonable confidence in geology and grade continuity
- Measured: Highest confidence level with detailed sampling
The Mt Mackenzie project includes both Indicated and Inferred resources, with QMines currently updating the Mineral Resource Estimate with results expected shortly.
Accelerating Growth Strategy: Creating a Regional Mining Hub
The QMines Mt Mackenzie acquisition marks a pivotal step in the company's strategy to establish a multi-deposit copper and gold production hub in central Queensland. Following the March 2025 Mineral Resource upgrade at Develin Creek and the proposed Mount Mackenzie acquisition, QMines' combined global resource base will expand to 19.3 million tonnes across its three projects.
This regional development approach is becoming increasingly common, with companies like Cannindah Resources also pursuing copper-gold projects in Queensland with promising drill results. Furthermore, exploration companies such as Hammer Metals are launching new drilling programs in similar geological settings.
This represents substantial growth in the company's resource inventory, as illustrated in the table below:
| 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 | 3.4 | – | 1.18 | – | 9 |
| Total | 18.83 |
Work is now underway to evaluate the integration of the Mount Mackenzie Project into a broader regional mine plan, leveraging shared infrastructure, streamlined logistics, and efficient processing pathways.
Near-Term Catalysts for Investors to Watch
Several potential value-creating milestones are on the horizon for QMines:
- Completion of the Mt Mackenzie acquisition expected in the coming weeks
- Updated Mineral Resource Estimate for Mt Mackenzie to be announced shortly
- Maiden drilling program at Mt Mackenzie following completion of current Develin Creek drilling
- Potential resource expansion given the open nature of the deposit in multiple directions
- Integration of Mt Mackenzie into the company's broader regional development strategy
Managing Director of Resources & Energy group, Daniel Moore commented: "We're pleased to see Mount Mackenzie in the hands of a capable and ambitious team like QMines. We believe strongly in their regional copper-gold production strategy and see this acquisition as a natural fit. Mount Mackenzie is a quality project with significant upside, and we look forward to supporting QMines as long-term shareholders."
Why Investors Should Follow QMines
QMines presents a compelling investment case for resource sector investors:
- Rapidly growing resource base now approaching 20 million tonnes across three projects
- Strategic focus on critical minerals (copper, gold, zinc, silver) with strong demand fundamentals
- Geographic concentration creating operational synergies and development efficiencies
- Multiple near-term catalysts including resource updates and exploration programs
- Experienced management team with track record of project advancement
- Strong shareholder support as evidenced by favourable financing terms and voting approval
The QMines Mt Mackenzie acquisition reinforces the company's position as an emerging mid-tier resource developer in Queensland with a clear pathway to potential production. In the broader market context, other explorers like Austin Metals have identified new gold targets, while companies such as Vital Metals have secured funding for advancing their rare earth projects, highlighting the current dynamic exploration environment.
Key Takeaway:
QMines has positioned itself as an emerging player in Queensland's critical minerals sector, with significant upside potential due to its multi-asset portfolio and regional development strategy. With upcoming drilling at Mt Mackenzie and continued resource growth, investors should keep a close eye on developments as the company advances toward its production ambitions.
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