BRISBANE: QMines Limited (ASX: QML) has announced a binding agreement to acquire 100% of the Mount Mackenzie Gold and Silver Project from Resources & Energy Group Limited (ASX: REZ) for $2.485 million.
The deal includes a $1 million cash payment and 33 million QMines shares, voluntarily escrowed for 12 months.
Key Highlights:
– Resource Expansion: The project holds an estimated 129,000 ounces of gold and 862,000 ounces of silver, with potential for further growth.
– Strategic Synergies: Located 140 kilometers northwest of QMines’ Mt Chalmers copper project, the acquisition aligns with the company’s goal of consolidating assets in Queensland.
– Exploration Upside: Mount Mackenzie’s high-sulphidation epithermal system remains underexplored, with mineralization open at depth and along strike.
QMines Executive Chairman Andrew Sparke called the acquisition “transformative,” citing operational synergies with existing projects like Develin Creek and Mt Chalmers. The company plans to process Mount Mackenzie ore at its proposed Mt Chalmers plant, enhancing economies of scale.
Planned Exploration:
Post-acquisition, QMines will:
– Digitize historical data and update resource models.
– Conduct metallurgical drilling to optimize processing.
– Launch a maiden RC drilling program, budgeted at $300,000.
The mineral resource estimate, compliant with JORC 2012 standards, was validated by independent geologists. QMines noted it has not independently verified REZ’s data but found no material discrepancies.
The deal diversifies QMines’ commodity exposure amid rising gold prices while expanding its footprint in Queensland’s mineral-rich Connors-Auburn Arc.
The Queensland-focused explorer owns the Mt Chalmers and Develin Creek copper-gold projects, with a combined resource of 15.5 million tonnes at 0.82% copper and 0.35 g/t gold.