HIGHLIGHTS

-         Final four diamond holes cut with all assays now received from Mt Chalmers maiden 11-hole diamond drilling program;

-         Outstanding high-grade copper, gold, silver, zinc and lead results returned with bonanza grades of up to 16.8% Zn, 8.3% Pb and 41g/t Ag from drillhole MCDD001;

-         Significant intersections include: [i]

• 7.5m @ 0.75g/t Au, 23g/t Ag, 0.24% Cu, 3.5% Pb and 7.4% Zn from 70.5 metres;

• Including 2.2m @ 0.85g/t Au, 41g/t Ag, 0.54% Cu, 8.3% Pb and 16.8% Zn from 72.5 metres.

• 8.7m @ 0.73g/t Au, 26g/t Ag, 0.34% Cu, 1.7% Pb and 4.4% Zn from 21.2 metres;

• 0.6m @ 3.31g/t Au, 87g/t Ag, 5.21% Cu and 1% Zn from 115 metres;

• 15.2m @ 2.36g/t Au, 0.67% Cu from 139 metres;

• Including 2m @ 9.31g/t Au and 1.34% Cu from 154 metres; and

• 14.6m @ 1.01% Cu from 185 metres.

• First six RC holes from the planned thirty-hole drilling program at Mt Chalmers have been completed with RC drilling ongoing.

QMines Limited , 13 July 2021, (ASX:QML) (FSE:81V) (QMines or Company) is pleased to provide the following results from the final four unassayed holes from the recent diamond drilling program at the flagship Mt Chalmers Copper Project, located 17km north-east of Rockhampton in Queensland (Figure 1).

The final four diamond holes from Mt Chalmers have delivered numerous high-grade precious and base metal intersections with outstanding polymetallic grades including. 2.2m @ 0.85g/t Au, 41g/t Ag, 0.54% Cu, 8.3% Pb and 16.8% Zn from drillhole MCDD001 drilled during this diamond program.

MANAGEMENT COMMENT

Commenting on the results, QMines Chairman Andrew Sparke, said:

“Final assays from the maiden diamond drilling program have returned some outstanding copper, gold and polymetallic results. The current resource model has not factored in zinc and lead so we will now work towards updating the resource model to factor in these results. The Company’s RC drilling program is progressing well with six holes drilled to date. We expect to deliver more results that will lead to a resource update in the near future.”

All significant results from the Mt Chalmers diamond drilling program can now be seen in Table 1 in red text with previous results announced 19 May 2020 shown in Table 1 in black text. Drillhole collar locations from the recently completed diamond program can be seen in Figure 2.

Figure 1: Location of the Mt Chalmers Copper Project, granted tenure, geology and related infrastructure.

Figure 2: Diamond drill hole collar locations, Mt Chalmers copper project, drilled Feb-March 2021.

QMines has completed an eleven-hole diamond drilling program for 1,587 metres (Figure 2), which commenced in Q1-2021 at the Mt Chalmers Copper Project. DDH1 Drilling completed the drilling program in six weeks. Company staff completed all core cutting during the last swing on site with all diamond core assays now received from ALS and all results from the diamond program are shown in Table 1.

The diamond drilling program was undertaken to validate historical drilling data compiled and digitised by the Company over the previous six months since acquiring the project. All diamond drill holes have been drilled within the current resource shell envelope with collar locations seen draped over the resource shell wireframe on the plan view shown in Figure 3.

Long Section A-A’ (Figure 4) displays the Digital Terrain Model (DTM), the resource shell wireframe, drill collar locations and significant mineralised intersections assayed by the Company with the previously announced results from 19 May 2020 shown in grey and the new results shown in red.

Drill hole MCDDH004 was abandoned before reaching target depth due to the drill string intersecting a void with the rig losing water return. MCDDH004 was re-drilled twenty metres to the south as DDH005 and reached the planned target depth. Drill hole MCDDH009 ended in mineralisation at the end of hole (EOH), with the drill hole not reaching target depth due to intersecting a void and losing water return.

Cross Sections A-A, B-B’ and C-C’ (Figure 5-7) illustrate DDH001-DDH003, DDH008 and DDH0010 significant intersections from the new assayed results from the diamond drilling program and relevant historical drill holes also shown in cross section.

Figure 3: Mt Chalmers resource shell wireframe with sections A-A’, B-B’ and C-C’ locations and drill collars.

Figure 4: Mt Chalmers Long Section A-A showing all diamond drill hole collars, historical twinned collars,

resource shell wireframe and significant intersections.

Figure 5-7: Cross Sections A-A, B-B’ and C-C from the Mt Chalmers diamond drilling program showing new significant  intersections detailed in red text with drill collars and current resource shell.

GEOLOGY

The geology of the Mt Chalmers area is relatively well-known with the Mt Chalmers mineralisation being identified as a well-preserved, volcanic-hosted massive-sulphide (“VHMS”) mineralised system containing copper, gold, zinc, lead and silver.  Mineral deposits of this type are deemed syngenetic and formed contemporaneously on, or in close proximity to, the sea floor during the deposition of the host-rock units. The mineralisation is believed to have been deposited from hydrothermal fumaroles, or direct chemical sediments or sub-seafloor massive sulphide replacement zones and layers, together with footwall disseminated and stringer zones within the host volcanic and sedimentary rocks.

The mineralisation system at Mt Chalmers displays some similarities to Australian VHMS deposits of Cambro-Ordovician and Silurian age, however closer comparison can be made with the Kuroko-style of VHMS of Tertiary age in Japan (Taube 1990).

The Mt Chalmers mineralisation is situated in the early Permian Berserker Beds, which occur in the fault-bounded Berserker Graben, a structure 120km long and up to 15km wide. The graben is juxtaposed along its eastern margin with the Tungamull Fault and in the west with the Parkhurst Fault (Figure 1). The Berserker Beds lithologies consist mainly of acid to intermediate volcanics, tuffaceous sandstone and mudstone (Kirkegaard and Murray 1970).  The strata are generally flat lying, but locally folded.  Most common lithotypes are rhyolitic and andesitic lavas, ignimbrites or ash flow tuffs with numerous breccia zones.

Rocks of the Berserker Beds are weakly metamorphosed and, for the most part, have not been subjected to major tectonic disturbance, except for normal faults and localised high strain zones that are interpreted to have developed during and after basin formation.

Recent geological work by the Queensland Department of Natural Resources and Mines places volcanic and sedimentary units of the prospective Chalmers Formation, the host unit to the Mt Chalmers copper-gold mineralisation, at the base of the Berserker Beds. The Ellrott Rhyolite and the Sleipner Member andesite were emplaced synchronously with the deposition of the Chalmers Formation.

Late Permian to early Triassic gabbroic and dioritic intrusions occur parallel to the Parkhurst Fault.  Smaller dolerite sills and dykes are common throughout the region and in the Berserker Beds.

DISCUSSION

Kuroko style of 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 such as the Woods Shaft and Botos exploration targets which at this early stage display geochemical and lithological similarities to Mt Chalmers.

Previous companies’, including the primary explorer Geopeko, did not consistently assay full suite base metals with a significant number of historical drill holes not assayed for zinc and lead. The Company will continue to assay a full base metal suite and monitor the polymetallic results with the view to remodel the resource incorporating zinc and lead credits into the model.

QMines will expand exploration activity within the tenement package at Mt Chalmers applying systematic exploration methods designed to locate further undiscovered VHMS mineralisation.

Figure 8: DDH001 laminated semi-massive suplhides including galena, sphalerite in talc chloritic alteration.

ONGOING EXPLORATION ACTIVITY

-         Exploration drilling at Mt Chalmers has now commenced with six of a planned thirty-hole, 3,000 metre, RC program completed and drilling is ongoing. RC drilling will be ongoing for several weeks with all drilling designed to further validate historical drillhole data and as infill drilling to be used to expand and upgrade the current resource*.

-         The Company has engaged Planetary Geophysics to manage and deliver an extensive 1,800-line kilometre REP-TEM airborne EM survey over the Mt Chalmers area extending both to the north-west and south-east of the Mt Chalmers mine covering an extensive area of the Berserker Beds. This survey is scheduled to commence in Q3-2021 and will be used in conjunction with all current data sets to define future potential VHMS drill targets.

-         Soil testing will continue and be expanded over much larger areas with extensive soil grids utilising Niton portable handheld PAS XRF which delivers real time base metal suite analysis.

-         The Company has applied for further exploration permits around Mt Chalmers extending the ground position to cover the Berserker Beds.

*The current resource for the Mt Chalmers Copper Project is located on the QMines website. It can be found in the recent QMines Prospectus in ANNEXURE A – Independent Geologists Report.

https://qmines.com.au/prospectus-2/

COMPETENT PERSON’S STATEMENT

The information in this announcement that relates to exploration results is based on information compiled by Hamish Grant a competent person who is a member of the Australian Institute of Geoscientists (AIG). Hamish Grant is employed by QMines Limited as Project Geologist. Hamish has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the JORC Code. Hamish Grant consents to the inclusion in this announcement of the matters based on his work in the form and context in which it appears.

Table 1: Significant intercepts Mt Chalmers diamond core program March 2021 with new results shown in red text and previously release results 19 May 2021 in black text*

*Note MGA 94_56

-         In reported exploration results, length weighted averages are used for any non-uniform intersection sample lengths. Length weighted average is (sum product of interval x corresponding interval assay grade), divided by sum of interval lengths and rounded to two decimal points.

-         No top cuts have been considered in reporting of grade results, nor was it deemed necessary for the reporting of significant intersections.

-         No metal equivalent values have been reported.

-         Cut off grades used in the calculations for the significant intercepts are 0.1g/t Au, 1g/t Ag, 0.2% Cu, 0.5% Pb and 0.5% Zn.

*Downhole intersections contained in this announcement in the vertical drill holes reported, represent true widths of the assayed mineralised intersections contained in Table 1.

*Downhole intersections contained in the announcement in drill holes at 60-degree dip represent approximately 87% true width of the assayed mineralised intersections contained in Table 1.

ABOUT QMINES

QMines Limited (ASX: QML) (FSE:81V) is a Queensland based copper and gold exploration and development company. QMines is seeking to become Australia’s first zero carbon copper and gold developer. The Company owns 100% of four advanced projects with a total area of 978km². The Company’s flagship project, Mt Chalmers, is located 17km North East of Rockhampton. The Project is a high-grade historic mine that produced 1.2Mt @ 3.6g/t Au, 2.0% Cu and 19g/t Ag between 1898-1982. Mt Chalmers has an Inferred Resource (JORC 2012) of 3.9Mt @ 1.15% Cu, 0.81g/t Au and 8.4g/t Ag.1,2

QMines’ objective is to grow its resource base, consolidate assets in the region and assess commercialisation options. The Company has commenced an aggressive exploration program (+30,000m) providing shareholders with significant leverage to a growing resource and exploration success.

Telefon (AUS): +61 (2) 8915 6241

Telefon (DE): +49 (0)831 930 652 43

Daniel Lanskey, Geschäftsführer

E-Mail: [email protected] 

Peter Nesvada, Investor Relations, Australien

E-Mail: [email protected]

Investor Relations, Deutschland

E-Mail: [email protected]  

DIRECTORS

ANDREW SPARKE

Executive Chairman

DANIEL LANSKEY

Managing Director

ELISSA HANSEN

Non-Executive Director & Company Secretary

QMINES LIMITED

ACN 643 212 104

SHARES ON ISSUE

110,706,082

UNLISTED OPTIONS

4,200,000 ($0.375 strike, 3 year term)

ASX CODE

QML

QMINES LIMITED

Registered Address: Suite J, 34 Suakin Drive, Mosman NSW 2088, Australia

Website: www.qmines.com.au

This announcement has been approved and authorised by the Board of QMines Limited.

Notes:

¹ Refer to the Independent Geologist Report commencing on page 84 of the Prospectus dated 16 March 2021 available at https://qmines.com.au/prospectus-2/

2 The Company confirms that it is not aware of any new information or data that materially affects the information included in the Prospectus dated 16 March 2021 and that all material assumptions and technical parameters underpinning the resources estimates in the Prospectus dated 16 March 2021 continue to apply and have not materially changed.

Please follow the link to view entire original news (incl. JORC-Code): https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02394744-6A1040588?access_token=83ff96335c2d45a094df02a206a39ff4

[i] Silver results in this announcement have been rounded to the nearest whole number.