Junior explorer QMines has acquired the high-grade Develin Creek copper-zinc project from Zenith Minerals for $4.5 million in cash and shares.
The two-staged transaction kicked off with the purchase of an initial 51% equity for $1.2 million in cash and $1 million worth of QMines shares.
The remaining 39% equity will be acquired within the next 12 months for $1.3 million in cash and another $1 million in shares.
All shares have been escrowed for six months from the date of issue.
The second tranche payment may be adjusted down to $975,000 in cash and $687,500 worth of QMines shares if a detailed metallurgical study shows zinc concentrate grades below 50%, or that a 50% grade is not commercially-achievable.
Project resources
Develin Creek is located 90 kilometres west of QMines’ flagship Mt Chalmers copper-gold project, which is 17km north-east of Rockhampton in Queensland.
The project has an indicated and inferred resource of 4.9 million tonnes grading 1.79% copper equivalent (CuEq) for 87,173 tonnes CuEq.
The Mt Chalmers resource has been updated four times since QMines listed on the ASX in 2021.
The project now boasts a measured, indicated and inferred resource of 11.86Mt grading 1.22% CuEq for 144,700t CuEq.
Development of combined resources
QMines managing director Andrew Sparke said Develin Creek’s proximity to Mt Chalmers and the high-grade nature of its copper-zinc mineralisation would bode well for the potential development of the combined resources.
“We have always believed the Develin Creek asset was very complementary [to Mt Chalmers] and would provide the scale required to progress it towards sustainable copper production,” he said.
“We wish to thank the Zenith board for sharing our vision of a larger, combined copper business… we look forward to testing several exciting exploration targets in preparation for potential future production.”
Exploration and development work
QMines’ initial exploration and development work at Develin Creek will include approximately 500 metres of diamond drilling to be used for updated metallurgical test work; and ground reconnaissance and drillhole planning of highly-ranked electromagnetic targets.
Reverse circulation drilling will be carried out to infill the existing resource and seek potential resource extensions.
The work is expected to feed into a feasibility study for a combined Mt Chalmers and Develin Creek development.
The study is scheduled for completion early in the new year.
