QMines’ golden chance

Resource explorer to drill into historic mines

THERE’S gold in them hills or so resources explorer QMines believes.

The company has released a prospectus for its initial public offering with the Australian Stock Exchange, with plans to explore and potentially restart mining gold and copper at three sites near Warwick and Stanthorpe, as well as a site in central Queensland.

The IPO is seeking to raise $10 to 20 million to begin digging at a long-dormant golf and copper mine at Mount Chalmers, outside Rockhampton, alongside exploration work in southern Queensland.

Shares will be priced at 30 cents each.

Closer to home, QMines has the Silverwood project - located 15km south of Warwick, the Warroo project, 50km west of Stanthorpe, and the Herries Range project, 40km west of Warwick, covering the central and southern portions of the Warwick Goldfields.

Over the past three years, the price of gold has gone from roughly $US1300 to $US1750 an ounce.

According to its prospectus, the company is planning a large drilling program.

The Silverwood and Warroo projects are on tenements that contain a number of historic mines and mineral occurences, while the Herries Range project largely consists of alluvial gold deposits and some historic mine clusters.

“Within these goldfields and clusters of mines, QMines has located several historical mines and prospects and zones of prospective rock formations associated with both hard-rock and alluvial gold mineralisation,” the prospectus said.

“Underlying QMines’ growth strategy is a strong belief that a systematic exploration program, over time, will yield results,” chairman Andrew Sparke wrote in his letter to investors included in the prospectus.