–News Direct–

QMines Ltd (ASX:QML) executive chairman Andrew Sparke sits down with Jonathan Jackson in the Proactive studio to discuss the company milestone Pre-Feasibility Study (PFS) for its flagship Mt Chalmers project, located 17km north-east of Rockhampton, Queensland. The PFS evaluates the commercial viability of a standalone mining operation focusing exclusively on the Mt Chalmers Resource, with the potential addition of resources from Develin Creek (Sulphide City & Scorpion) and Woods Shaft providing further growth opportunities. The study proposes a three-stage open pit mining operation with an onsite processing plant designed by COMO Engineers to handle one million tonnes of ore per annum (1Mtpa). The processing plant will produce copper/gold, zinc/silver, and pyrite/gold concentrates using standard crushing, grinding, and flotation techniques. The flow sheet accounts for two types of ore materialVolcanic Hosted Massive Sulphide (VHMS) and Stringer material, with a planned throughput composition of 30% VHMS and 70% Stringer. Key financial metrics from the PFS indicate a robust outlook for the Mt Chalmers project: Capital cost estimate: A$191 million Initial mine life: 10.4 years Life of mine revenue: A$1.64 billion Life of mine free cash flow: A$636 million Net Present Value (NPV8): $373 million Internal Rate of Return (IRR): 54% The estimated production for the initial life of the mine includes 65,000 tonnes of copper, 160,000 ounces of gold, 30,600 tonnes of zinc, 1.8 million ounces of silver, and 583,000 tonnes of pyrite. Additionally, a maiden ore reserve of 9.6 million tonnes (Proved and Probable) has been declared. The PFS concludes that the Mt Chalmers project is technically achievable and commercially viable, presenting an opportunity for QMines to establish a significant presence in the critical metals sector. The projects attractive risk-return profile and clear potential for enhancing returns through production rate increases and life extension further underscore its strategic value.

Contact Details

Proactive Investors

Jonathan Jackson

+61 413 713 744

jonathan@proactiveinvestors.com

View source version on newsdirect.com: https://newsdirect.com/news/qmines-reveals-robust-financials-and-growth-potential-at-mt-chalmers-790782691

QMINES LIMITED

COMTEX_451735776/2655/2024-05-01T16:14:06