NQ Minerals aiming to expand resources

By Trevor Hoey. Published at May 18, 2017, in Features

Australian based exploration and mining group, NQ Minerals (ISDX: NQMI), has expanded its Ukalunda project in Queensland to 130 square kilometres of well mineralised terrane following the grant of EPM 26204.

From a broader perspective, NQ Minerals focuses on projects where past exploration work has established the presence of mineral occurrences.

In keeping with this strategy, NQMI’s Non-Executive Chairman, Brian Stockbridge underlined the thinking behind extending its Ukalunda landholding in saying, “The Board and management of NQ Minerals continue to uncover the inherent value of the mineralisation within the Ukalunda project, and have enlarged the permit area to include more land containing historic high grade mineral discoveries”.

The Company’s attention is focused on the most prospective area of the permit where principle prospects are potentially the three larger historical deposits which are represented by polymetallic historic mines, Sunbeam Silver Mine, Carrington Silver Bismuth Mine and Pyramid Lead Silver Mines.

A total of 600,000 ounces of silver were mined from the Sunbeam Mine with very high grades of up to 37kg/tonne. The Sunbeam Mining Lease application is now proceeding to formal grant following conclusion of Compensation agreements on the area.

Once granted, this will allow processing of the surface stockpiles to begin providing cash flow to fund the exploration and development of the project. This is planned to minimise earnings per share dilution for shareholders going forward.

Results of the metallurgical tests on the rich silver ore from the Sunbeam stockpiles should be released in the coming weeks. Preliminary results from metallurgical testing of the Sunbeam silver/base metal stockpiles suggest that bulk flotation to produce a saleable concentrate may be an option.

Standout results from drilling at White’s Hope and Carrington.

Statutory reporting of 2016 work confirmed promising results from drilling at White’s Hope and Carrington.

At White’s Hope potentially ore grade gold was intersected with a 3 metre downhole length of 3.6 grams per tonne gold. Previously unknown zinc mineralisation was also discovered, including 1 metre intervals of 11.8% and 4.1% zinc.

At Carrington a large pyritic alteration system was encountered with promising grade bismuth-copper intersections with the best holes intersecting widespread mineralisation including 2 metres grading 2.3% copper and 6 metres grading 2.4% lead and 97 grams per tonne silver.

In summing up these recent developments, Stockbridge said, “NQ Minerals is delivering on its two key objectives – drilling to ascertain the extent and grade of targets identified from previous resource data and taking steps to process the approximately 48,000t of mineral stockpiles at Sunbeam which contain potentially commercial grades of silver and other minerals at its Ukalunda Project at EPM 18019”.

He highlighted that the short term strategy was aimed at generating cash flow from processing the Sunbeam mineral stockpiles and increasing value by targeted drilling of known deposits, noting that the easiest way to add value is by drilling and upgrading previous non-JORC compliant resource data.

While NQ Minerals remains an evolving story, the fact that management and investors alike have a reasonable understanding of the calibre of its assets could stand it in good stead, particularly if follow-up drilling confirms or exceeds historical data.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!