QMines : Excellent Preliminary Metallurgical Results

Excellent Metallurgical Results from Preliminary Testwork

MT CHALMERS

Highlights

Initial metallurgical testwork indicates high recoveries from all concentrates and relatively simple flotation process;

Initial rougher concentrates from the stringer and massive sulphide mineralisation include:

• • Stringer: Copper concentrate with recoveries of 97% copper and 87% gold, which represents the bulk of the resource;

• • Massive Sulphide: Copper-lead concentrate with recoveries of 89% copper, 77% zinc and 43% gold; and

• • Massive Sulphide: Zinc concentrate with recoveries of 84% zinc and 43% gold.

Additional gold recovery from zinc concentrate tail using cyanide leach generated 98.4% total gold recovery; and

Further work remains ongoing with significant potential to improve overall recoveries.

Overview

QMines Limited (ASX:QML)(QMines or Company) is pleased to announce excellent preliminary metallurgical testwork results from an initial sighter study completed on its Mt Chalmers copper and gold project, located 17km north-east of Rockhampton, Queensland (Figure 1).

This metallurgical testwork program was designed to establish a preliminary flowsheet and assess the ability to recover these metals into separate flotation concentrates.

"It is very pleasing to see such excellent results from this initial study for the Mt Chalmers project. Although further work is required, these initial results demonstrate the development potential of the project. I would like to thank Como Engineers and ALS for all their efforts in delivering these results in a timely manner. Further work is now being undertaken to improve overall recoveries, develop a cleaner flotation and improve flowsheet optimisation."

QMines Executive Chairman, Andrew Sparke, comments:

Management Comment

The testwork was undertaken by ALS Metallurgy at their laboratory in Balcatta, Western Australia with Como Engineers engaged to supervise the program.

Figure 1: Location of Mt Chalmers Project, tenure, geology and infrastructure.

Stringer Mineralisation

A composite of stringer mineralisation with a head grade of 1.22% Cu, 0.2% Pb, 0.02% Zn and 1.05 g/t Au was subjected to two preliminary open circuit flotation tests. Sequential flotation was successful in producing a copper rougher concentrate. The lead and zinc grade in this composite were low and therefore a copper only circuit flowsheet can be considered for this mineralisation type.

Rougher grades of up to 12.3% Cu and 4.6g/t Au were produced with excellent recoveries of 97.1% copper and less than 0.14% lead and zinc, see figure 2. Gold predominantly reported to the copper concentrate, grading as high as 4.6g/t gold. There is an opportunity to further improve recoveries in subsequent testwork programs.

These results were particularly encouraging as lithologically, the stringer mineralisation makes up the bulk of the

Figure 2: Copper recovery from stringer mineralisation vs time at Mt Chalmers. resource.

Massive Sulphide Mineralisation

A composite of massive sulphide (copper, lead and zinc exhalite) with a head grade of 1.28% Cu, 1.42% Pb, 3.51% Zn and 4.31 g/t Au was subjected to ten preliminary open circuit flotation tests. Sequential flotation was successful in producing rougher concentrates of copper/lead and zinc.

Rougher grades of up to 15.6% Cu, 15.1% Pb and 16.6% Zn were produced with acceptable recoveries of 88.8% copper, 76.6% lead and 83.6% zinc. Gold predominantly reported to the copper/lead concentrate, grading as high as 46.9g/t gold. There is an opportunity to further improve recoveries in subsequent testwork programs.

Figure 3: Location of diamond drill hole MCDD017 which was used for the testwork.

Figure 4: Selected pieces of diamond drill core used for the metallurgical testwork at Mt Chalmers.

Testwork Details

Sample Assay¹

Two composites were prepared from select drill core intervals from MCDD017 (Table 1 and 2). The samples represent the different domains of mineralisation encountered at Mt Chalmers.

The composite head grade (Table 3), determined by Inductively Coupled Plasma Mass Spectrometry (ICP-MS), is representative of the average grade of the mineralisation expected in the mineral

resource.

Hole ID	From (m)	To (m)	Mass (kg)
MCDD017	60.85	62.29	2
MCDD017	62.29	63.00	2
MCDD017	63.00	64.00	2
MCDD017	64.00	65.00	2
MCDD017	65.00	65.90	2
MCDD017	65.90	67.00	2
MCDD017	67.00	68.00	2
MCDD017	68.00	69.00	2
MCDD017	69.00	69.65	2
Total:	18

Table 1: Metallurgical composite core selection, stringer mineralisation composite.

¹ ASX Announcement -Multiple Wide High-Grade Intersections Outside Resource, 6 October 2021.

Hole ID	From (m)	To (m)	Mass (kg)
MCDD017	22.00	23.40	0.50
MCDD017	23.40	24.40	2.60
MCDD017	24.40	25.40	1.50
MCDD017	25.40	26.40	1.50
MCDD017	26.40	27.30	1.50
MCDD017	27.30	28.30	0.50
MCDD017	28.30	29.30	1.50
MCDD017	29.30	30.30	1.20
MCDD017	30.30	31.50	1.28
MCDD017	31.50	32.30	1.28
MCDD017	32.30	33.00	1.28
MCDD017	33.00	33.80	1.28
MCDD017	33.80	35.00	1.28
MCDD017	35.00	36.00	0.50
MCDD017	36.00	37.30	0.50
MCDD017	37.30	38.00	0.50
MCDD017	38.00	39.00	0.50
MCDD017	39.00	40.00	0.50
MCDD017	40.00	41.00	0.50
MCDD017	41.00	42.00	0.50
MCDD017	42.00	43.00	0.50
MCDD017	43.00	43.80	0.50
MCDD017	23.40	24.40	0.80
MCDD017	39.00	40.00	0.50
MCDD017	40.00	41.00	0.50
MCDD017	41.00	42.00	0.50
MCDD017	42.00	43.00	0.50
MCDD017	43.00	43.80	0.50
MCDD017	43.80	45.00	1.00
MCDD017	45.00	46.00	1.00
MCDD017	46.00	47.00	1.00
MCDD017	47.00	48.46	1.00
MCDD017	48.46	49.20	3.62
MCDD017	49.20	50.00	1.00
MCDD017	52.00	52.65	1.00
MCDD017	52.65	53.50	1.00
MCDD017	53.50	54.50	1.00
MCDD017	54.50	55.50	1.00
MCDD017	55.50	56.50	1.00
MCDD017	56.50	57.50	1.00
MCDD017	58.67	60.00	1.00
MCDD017	60.00	60.85	1.00
MCDD017	69.65	70.10	1.00
MCDD017	70.10	71.00	1.00
MCDD017	71.00	72.00	1.00
MCDD017	75.00	76.35	1.00
MCDD017	76.36	76.80	1.00
MCDD017	76.80	78.00	1.00
Total:	50.42

Table 2: Metallurgical composite core selection, massive sulphide mineralisation composite.

Metallurgical Composite	Cu (%)	Pb (%)	Zn (%)	Fe (%)	S (%)	Si (%)	Au (g/t)
Massive Sulphide Mineralisation	1.28	1.72	3.51	8.55	9.48	49.2	4.31
Stringer Mineralisation	1.22	0.02	0.02	6.58	3.66	75.6	1.05

Table 3: Composite head grade.

Stringer Flotation Summary

A total of two flotation tests have been conducted on the stringer composite core selection to date. All tests were conducted on 1kg batch flotation tests. Tests were conducted using Perth tap water at a primary grind size of P80 150 and 75μm.

Results from tests on the two grind sizes showed improved copper recovery was achieved from the finer grind composite.

Considering this phase of work was only a preliminary testwork program focused on producing a copper rougher concentrate, some excellent results were produced (refer Table 4).

Test Number	Wt (%)	Copper Grade (%) Recovery (%)	Lead Grade (%) Recovery (%)	Zinc Grade (%) Recovery (%)	Gold Grade (%) Recovery (%)
Copper Rougher Concentrate 1-4
MN2967	8.22	8.84	54.20	11.20	64.00	16.40	38.30	35.00	45.50
MN2968	14.10	9.18	96.60	8.99	85.10	19.60	77.10	30.00	80.20
Zinc Rougher Concentrate 1-4
MN2967	24.10	2.48	44.70	1.97	33.20	8.65	59.40	12.00	43.70
MN2968	17.90	0.18	2.41	1.01	12.10	4.25	21..20	3.30	11.20

Table 4: Flotation summary data - stringer sulphide mineralisation

Massive Flotation Summary

A total of ten flotation tests have been conducted on the composite core selection to date. All tests were conducted on 1kg batch flotation tests. Tests were conducted using Perth tap water at a primary grind size of P80 150 and 75μm.

The overall copper and zinc performance of both tests were marginally different at the grind sizes tested. Based on results achieved, a primary grind size of P80 75µm was chosen as the preferred grind size for the majority of the testwork.

Considering this phase of work was only a preliminary testwork program focused on producing separate rougher concentrates, some excellent results were produced (refer Table 5).