QMines (ASX:QML) reports the Mt Chalmers Project in Queensland is a technically and financially robust asset, after completing a Prefeasibility Study.
The PFS outlines the project, with an initial 10.4-year mine life, supports a stand-alone 1 million tonnes per year process plan and a capital cost estimate of $191 million.
QMines reports the life of mine revenue is forecast to generate $1.64 billion and free cashflow of $636 million. The PFS also highlights Mt Chalmers would have a net present value of $373 million and an internal rate of return of 54%.
The company adds the Mt Chalmers project is anticipated to produce 65,000 tonnes of copper, 160,000oz ounces of gold, 30,600t of zinc, 1.8Moz of zinc and 583,000t of pyrite throughout the initial mine life.
Executive Chairman Andrew Sparke says QMines has shown Mt Chalmers can be commercialised using industry standard treatment processes and techniques.
“With improving base metals prices associated with supply constraints, Mt Chalmers represents a low cost, high margin and long-life project with immediate upside from three satellite deposits and a large exploration package,” Sparke says.
The company says the proposed development of Mt Chalmers presents an opportunity for QMines to establish and grow a mining and processing business with an “attractive” risk-return profile and clear potential to further enhance project returns.
Subject to environmental approvals, the project has the potential to supply critical metals towards the start of the next cycle.
The company notes this provides leverage to the higher predicted prices associated with the energy transition.
QMines is a Queensland-based copper and gold explorer and developer that wholly owns the Mt Chalmers and Devlin Creek projects. Both projects are located within 90km of Rockhampton in Queensland.
Write to Aaliyah Rogan at Mining.com.au
Images: QMines
