Image  source: Shutterstock

Highlights

  • QMines to acquire 100% of the Mount Mackenzie project from Resources & Energy Group
  • Acquisition increases resource scale and potential for synergies with existing operations
  • Mount Mackenzie offers growth opportunities with underexplored mineralization

QMines Limited (ASX: QML) has announced the acquisition of the Mount Mackenzie Gold and Silver Project from Resources & Energy Group Limited (ASX: REZ), pending shareholder approval. The project, which was previously evaluated in 2020, will significantly enhance QMines' portfolio in Queensland, increasing both the scale and gold and silver endowment of the company’s assets.

The Mount Mackenzie project’s Mineral Resource Estimate (MRE), initially reported by Resources & Energy in May 2020, provides a solid foundation for the acquisition. While QMines has not independently verified the estimates, it considers them reasonable based on the available data. The company does not endorse the estimates at this stage but plans to carry out further exploration and evaluation.

This acquisition aligns with QMines’ strategic growth objectives, offering multiple benefits to shareholders. The proximity of the Mount Mackenzie project to QMines' existing Develin Creek project enables significant operational synergies, including shared processing facilities, infrastructure, and management teams, all of which could reduce operational costs and accelerate production timelines.

Additionally, the acquisition enhances QMines’ total resource inventory, expanding both the potential scale and life of its projects. The underexplored nature of the Mount Mackenzie project, particularly its mineralization, offers significant upside potential as exploration continues.

By adding the Mount Mackenzie gold and silver resources to its portfolio, QMines increases its exposure to gold, diversifying its commodity holdings beyond copper. As the transaction progresses, QMines intends to incorporate the Mount Mackenzie project into its broader mine plan, with the potential to process the ore at the proposed Mt Chalmers processing plant, located 140 kilometres away in Rockhampton.