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QMines Significant Progress Towards Planned IPO

  • Oversubscribed $2.2 million seed capital raising fast-tracks IPO plans;
  • Delivery of maiden copper and gold Mineral Resource at Mount Chalmers;
  • Four additional Exploration Targets demonstrate Resources growth potential;
  • Acquisition of further tenure solidifies regional land position;
  • Major components of prospectus now complete or in final form; and
  • IPO on track for Q1-2021 with conditional in-principle approval received from ASX.

Since QMines Limited’s (QMines or Company) incorporation on the 4th August 2020, your Company has been making solid progress towards its planned ASX listing. We are pleased to provide the below update on what has been a very busy period for the Company.

Agreement to Acquire Projects:

The Company has entered into a binding Sales and Purchase Agreement (Agreement) to acquire rights to 100% of four advance copper and gold projects located in Queensland. The projects include the Mount Chalmers historic copper and gold mine which is located east of Rockhampton.

Figure 1: Location of QMines Projects and nearby gold mines.

Oversubscribed Seed Capital Raising:

The Company is pleased to announce that it has recently completed a seed capital raising of $2.2 million. The capital raising was strongly oversubscribed and includes investments from a number of notable sophisticated and institutional investors.

The funds will be used to prepare the Company for its planned ASX listing and for general working capital purposes. QMines wishes to thank its new shareholders for their strong support.

Maiden Copper & Gold Mineral Resource:

Since entering into the Agreement, the Company has focused on collating existing historical exploration data at the Mount Chalmers project. As a result, the Company has now published a maiden Inferred Resource of 3.9 million tonnes at 1.15% copper, 0.81 g/t gold and 19 g/t silver. This equates to 44,900 tonnes of copper, 101,900 ounces of gold and 1.06 million ounces of silver.

Importantly, the resource remains open in all directions and has been put together by an Independent Geologists, H&S Consulting. The Company is planning an aggressive drilling program during calendar year 2021, with the expectation of further increasing the resource base.

Additional Exploration Targets:

In addition to the maiden mineral resource mentioned above, the Company is pleased to announce that it has also published four Exploration Targets at the Company’s Mount Chalmers (Woods Shaft, Botos & Mount Warminster prospects) and Silverwood projects. These targets are listed in the table below:

Exploration Target:Tonnes (Mt):Grade (% Cu):Grade (g/t Au):Grade (g/t Ag):Grade (% Zn):Grade (% Pb):
Woods Shaft1.0 – 1.50.2 – 0.30.6 – 1.0–  –  
Botos1.5 – 2.50.1 – 0.20.5 – 0.830 – 501.1 – 1.40.5 – 0.7
Mt Warminster1.5 – 1.80.1 – 0.28 – 120.5 – 0.70.25 – 0.35
Silverwood0.8 – 1.00.3 – 0.5–  15 – 253.2 – 3.70.3 – 0.5
Table 1: Exploration Targets at Qmines projects

The above Exploration Targets demonstrate the strong resource growth potential at Mount Chalmers.

Regional Consolidation:

The Company is pleased to advise that following an extensive geological review of the four projects, it has recently acquired approximately 700km² of additional tenure surrounding or adjacent to its projects. This ensures that each of the projects are now contiguous packages which cover all regionally significant mines and geological structures that the Company considers prospective for further discoveries.

Proposed ASX Listing:

The Company has made significant progress towards completing its planned IPO.

ASX now requires companies that are planning an IPO to submit an in-principle advice application prior to lodging their prospectus and seeking admission to the official list. QMines completed and submitted its in-principle advice application to ASX in October 2020 and received conditional approval to proceed with its planned IPO.

Since then, the Company has been diligently working through a number of the key prospectus requirements and is pleased to report that most of the major components of the prospectus are now completed or in final form. Subject to regulatory approvals and market conditions, the Company remains on track to complete its planned ASX IPO in Q1-2021.

Background on Projects:

Mount Chalmers:

Mt Chalmers is located 15km north east of Rockhampton and is easily accessible via existing infrastructure. The mine operated during various commodity price cycles from 1898 and 1982, producing 1.2 million tonnes at 2% copper, 3.6 grams per tonne gold and 19 grams per tonne of silver.

Figure 2: The historic Mount Chalmers copper and gold mine.

Significant capital was invested during this time and the project comes with a large historical drill database that provides further resource growth potential. The deposit is a Volcanic Hosted Massive Sulphide (VHMS) system. There are a number of additional VHMS prospects identified within 5km of the existing Mount Chalmers open pit.

Other Projects:

The Company has three additional projects: Silverwood; Herries Range and Warroo. The projects are all located near Warwick and Stanthorpe in South East Queensland, only two hours west of Brisbane. 

The Warroo Project includes the historical Warroo copper and gold mine. The mine was operated between 1906 and 1992 and previously produced 13,982 ounces of gold and 21 tonnes of copper.  The area includes the Ti-Tree Ridge prospect to the east of the existing open pit where an 800m outcropping zone of surface gossan has been identified where initial rock chip sampling contained results of up to 10.9g/t of gold.

The Silverwood Project was the subject of an initial drilling program undertaken by the Geological Survey of Queensland.  Results from the drilling program included a number of notable intersections containing zinc, copper, gold and lead mineralisation.

The Herries Range project is located west of Warwick and contains several historical bonanza mines. At Herries Range there are multiple locations where quantities of alluvial gold nuggets have been located during previous field visits.

Figure 3: Gold nuggets found at the Herries Range project during recent field trip.

Management Comment:

QMines Managing Director, Mr Daniel Lanskey comments:

“Having identified these projects a few years ago, I am excited to be working with Andrew Sparke and James Anderson to launch our new Company.  Andrew and James were previously involved with ASX listed Alt Resources Ltd (ASX:ARS) which was recently sold to a private equity group for AUD$40 million. Under their management, the Alt team increased the resource at Mt Ida and Bottle Creek to approximately 600,000 ounces of gold and 4.5 million ounces of silver prior to the takeover after completing 40,000m of drilling in just 18 months. This successful outcome clearly demonstrates we have assembled an experienced team that can deliver the results we are targeting at our Queensland Projects”.

With copper demand increasing and a strong commodity price, the Company is in an enviable position heading into the New Year.

Once again, we wish to thank our shareholders for their strong support in the recent seed capital raising and we look forward to completing the proposed listing early next year.

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