QMines Faces Funding and Development Challenges Despite Promising Develin Creek Drilling

Develin Creek Drilling Program Completion

QMines Limited (ASX: QML) has successfully completed its maiden Reverse Circulation (RC) drilling program at the Develin Creek copper project, comprising 43 holes for a total of 5,064 metres. This large-scale campaign, finalized ahead of the Queensland wet season, focused on the Scorpion and Window deposits, which are relatively shallow and potentially amenable to low-cost open pit mining.

The drilling results have been encouraging, with significant intersections reported from the Scorpion deposit including intervals such as 31 metres at 2.35% copper, 0.37 g/t gold, 20 g/t silver, and 2.37% zinc from 104 metres depth, and 20 metres at 2.94% copper including 6 metres at 4.16% copper. These results confirm and extend historical mineralisation, highlighting continuity and potential for resource growth.

Strategic Acquisition and Resource Confidence

The quarter also marked the completion of QMines’ acquisition of a 100% interest in the Develin Creek project from Zenith Minerals Limited, with the final payment of $1.76 million in cash and shares. This acquisition consolidates QMines’ position in a highly prospective copper-zinc-gold-silver district near Rockhampton, Queensland.

Infill drilling has improved geological confidence by reducing drill spacing from historical 50 metres to 25 metres, aiming to upgrade resource classifications from Inferred to Indicated and Measured categories. This step is critical for advancing the project towards feasibility and eventual production.

Mt Chalmers Project Progress and Ore Reserve

Alongside Develin Creek, QMines continues to advance its Mt Chalmers project, a historic high-grade copper-gold-silver mine. The project now boasts an Ore Reserve Estimate of 9.6 million tonnes at 0.65% copper, 0.48 g/t gold, and 0.27% zinc, supporting a staged open pit mining operation. The integrated mine plan leverages the combined resources of Mt Chalmers and Develin Creek, positioning QMines as a potential emerging copper and gold producer in Australia.

Financial and Corporate Developments

QMines reported a net cash outflow from operating activities of $1.13 million for the quarter, reflecting the intensive exploration and evaluation expenditure at Develin Creek. The company ended the period with $1.485 million in cash and cash equivalents and maintains a $1.5 million loan facility. Management indicates that exploration costs are expected to decline in the coming quarters, and the company is actively monitoring capital requirements with potential funding avenues under consideration.

Executive Chairman Andrew Sparke and Non-Executive Director Peter Caristo represented QMines at the Noosa Mining Conference, where the company’s growth strategy and project potential were well received.

Outlook and Next Steps

QMines anticipates receiving the final assay results from the remaining drill holes at Develin Creek early in February 2025, which will further inform resource updates and mine planning. The company is also progressing geological and petrological studies to better understand mineralisation controls and deposit styles, particularly at the Window prospect where new mineralisation styles may be emerging.

With a combined measured, indicated, and inferred resource of 15.1 million tonnes at 1.3% copper equivalent, QMines is well positioned to advance towards sustainable copper production, leveraging its strategic assets in Queensland’s prolific mining region.