QMines : Further Excellent High-Grade Copper, Gold & Silver Results

Further Excellent High-

Grade Copper, Gold & Silver

Results at Mt Chalmers

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MT CHALMERS

Highlights

6 June 2022

Twelve Reverse Circulation (RC) drill holes completed for 2,162 metres drilled; Assay results from the first three RC holes have now been received;

Results include multiple wide and high-grade intersections up to 4.7%

Copper Equivalent (CuEq);

Significant results include¹:

• 8m @ 4.7% CuEq from 119m, within 21m @ 2.6% CuEq from 113m;
• 29m @ 1.6% CuEq from 161m, including 2m @ 4.2% CuEq from 161m;
• 2m @ 4.0% CuEq from 173m, and 2m @ 3.6% CuEq from 179m; and
• 16m @ 1.1% CuEq from 132m, including 2m @ 4.3% CuEq from 136m.

RC drilling performing well with samples now delivered weekly to ALS Laboratory; and

The balance of nine holes drilled to be reported shortly.

¹ Individual grades presented in table 2.	1

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Overview

QMines Limited (ASX:QML) (QMines or Company) is pleased to provide the following results from the ongoing RC drilling program at its flagship Mt Chalmers Project, located 17 km north-east of Rockhampton in Queensland (Figure 1).

High-grade copper equivalent (CuEq) results have been intersected in the first three RC drill holes reported from the May drilling program including up to 4.7% CuEq in MCRC010 and 4.2% CuEq in MCRC009. Base and precious metal grades from the May drilling program can be seen in Table 2.

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

Management
Comment
QMines Executive Chairman,
Andrew Sparke, comments:
"It is great to see the Mt Chalmers
mine continue to deliver shallow,
thick and high grade drilling
results. Further step out drilling is
continuing at Mt Chalmers where
the deposit remains open in a
number of directions. The RC rig
and our drilling team are
performing exceptionally well with
significantly more meters being
reported on more regular basis."	Figure 2: April - May 2022 RC drill hole collar locations, Mt Chalmers project.

The Company commenced RC drilling operations at Mt Chalmers in April 2022, completing twelve holes for 2,162 metres drilled. These holes represent the first stage of a planned 10,000 metre RC program. All drillholes were sampled at one metre intervals and samples showing visibly mineralised material were submitted to ALS Laboratories in Brisbane for assay. Holes and metres drilled from these drilling programs are summarised in Table 1. Completed drill hole locations are shown in Figure 2. Significant results from this recent Mt Chalmers drilling program are shown in Table 2.

PROJECT	DRILLING TYPE	HOLES	METERS	TENEMENT	STATUS
Mt Chalmers	RC	3	530	EPM 25935	Completed
Mt Chalmers	RC	9	1,632	EPM 25935	Assays Pending
TOTAL		12	2,162

Table 1: Total RC holes drilled at Mt Chalmers April 2022..	2

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The drilling programs will consist of infill holes to upgrade the current resource, step-out holes to expand the resource, exploration and infill holes at Wood Shaft (Exploration Target

• JORC 2012) and early-stage exploration holes at the Tracker 3 soil anomaly. RC drilling to date has already identified wider mineralisation intercepts than anticipated and provided some evidence of stacked mineralised zones. The current program comprises approximately 50 RC holes and will improve the Company's understanding of the geological controls on mineralisation, whilst aiming to identify additional mineralisation.

Figure 3: QMines RC rig operating at the Mt Chalmers main pit, April 2022.

RC holes MCRC009 to MCRC020 were drilled across the northern and western ends of the Main Pit. Holes MCRC009 - MCRC011 results have been received and have returned high- grade results over broad intersections including 29 metres @ 1.58% CuEq from MCRC009 and 21 metres @ 2.62% CuEq from hole MCRC010. Recent drilling has identified two mineralised horizons with a second, underlying horizon having been identified below the main resource. This lower horizon has been observed in holes MCRC012, 013 and 015 where it has expanded in thickness.

Going forward, QMines will continue to deliver assayed results as CuEq with all results for base and precious metals that make up the CuEq also shown. The CuEq Formula uses the same Metal Price Assumptions and Metallurgical Recovery Grades used in the Company's recent resource upgrade delivered to the market in December 2021¹.

This RC drilling program is scheduled to continue throughout Q2 and into Q3 2022 for a total planned ~10,000 metres with results to be reported on a regular basis. The Company is expecting to deliver ~2,200 metres of RC drilling per month over the coming months, providing investors with consistent assay results and news flow from the Mt Chalmers project.

Examples of the recent mineralised intersections from the drilling program can be seen in plan-view in Figure 4 and Sections AA' and BB' (Figures 5-6), with several drillholes including MCRC009, MCRC010 and MCRC011 intersecting high-grade mineralisation.

¹ ASX Announcement - Mt Chalmers Resource Upgrade, 1 December 2021.

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Figure 4: April-May RC drillhole collar locations and Sections AA and BB.

Figure 5: Section AA' mineralised intersections with resource wireframe from December 2021.

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Figure 6: Section BB' mineralised intersections with resource wireframe from December 2021.

Discussion

Kuroko-style mineralisation usually occurs as clusters of mineralised zones, which appears to be the case for Mt Chalmers, which may be only one of several deposits. In addition, the interpreted structural dislocation for the mine area may have caused the break-up of larger mineral bodies, structurally dispersing lenses within the general Mt Chalmers area.

The geometry of the Mt Chalmers ore body indicates a relatively flat lying asymmetrical massive sulphide mound (Figure 7), with both historical and recent drilling results intersecting higher grade Cu-Au massive sulphides proximal to the centre of the deposit, and high grade Pb, Zn, Ag in the massive sulphide and exhalate ore body distal from the centre of the orebody. Similar metal zoning has also been observed in the stringer/disseminated zone beneath the Massive Sulphide Ore Body, where Cu-Au grades a typically higher in the centre and Pb, Zn, Ag grades typically higher distally and at greater depths.

A structural study of drill core from the eight holes drilled in early 2022 has found that the sulphide stringer zone (SSZ) is comprised of anastomosing and multidirectional sulphide veins, often present as breccia cement, with no clearly defined structural orientation. This is more typical of boiling zone architecture. Stringer sulphides are more concentrated at the top of the SSZ where they directly underlie the massive sulphide horizon. These findings suggest the massive sulphide horizon has, at least in part, resulted from the combined surface output of this widespread boiling zone, and possibly more so than a single feeder pipe.

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