QMC - White Range site

White Range Project
A Company transforming project.

The acquisition by QMC of the White Range Project was a company transforming transaction.

Completed in July 2010, when QMC acquired Matrix Metals (In Liquidation). The transaction delivered to QMC a range of projects which are primarily copper but come with the add-on of significant quantities of cobalt.

The particular projects include:

Greenmount
Kuridala
Vulcan
McCabe

Since the acquisition, drilling activity has increased with some very encouraging results.

Particularly notable were results from Young Australian which are detailed in the company’s December 2010 Quarterly Report, issued on 31 January 2011. The report appears on this website – click on the Investor Relations tab, then click on ASX Releases.

A highlight of the recent drilling programme was that 22 out of 23 holes completed encountered very significant intersections of copper, silver and cobalt mineralisation.

Part of this White Range acquisition was the Bankable Feasibility Study that Matrix had completed on the White Range deposits in 2005.

This BFS was carried out when the price of copper was US$1.40/lb but the 2005 BFS still indicated a production rate of 15,000 tonnes per annum of LME grade copper over a seven year mine life, giving an internal rate of return of 33% and a payback over 3 years.

An aerial view of the Young Australia site.
Drilling activity in the late 2010 produced excellent results. 22 out of 23 holes completed encountered very significant intersections of copper, silver and cobalt mineralisation.

With these numbers acting as a strong springboard, QMC is busily engaged in rejuvenating these 2005 numbers and incorporating a copper and cobalt price closer to the current LME quotes.

QMC is confident that it has a real winner on its hands at White Range.

Whilst the Company is carrying out the BFS work on White Range, QMC is looking at ways of enhancing the return to shareholders by investigating potential joint venture alliances and potential partnerships or off-take agreements with companies which have significant infrastructure in the region.

It is intended to produce copper cathode metal from the treatment of oxide ore.

QMC is targeting production of 20,000 – 25,000 tpa of copper together with cobalt and gold credits.

Potentially production could commence 2013, possibly sooner.

The White Range projects, as listed in the text opposite, are shown on this map.
A key point; they are in close proximity to a central processing area.