Ann: Acquisition of the Mount Mackenzie Gold & Silver Project, page-2

Mount Mackenzie stands out as a promising gold–silver asset for for several reasons. First, it already has a decent Mineral Resource Estimate (currently reported at approximately 129,000 ounces of gold and 862,000 ounces of silver), enhancing the Company’s overall metal endowment. Second, mineralisation remains open at depth and along strike, meaning there is strong potential for resource growth and new discoveries. Third, its location near other QMines projects (such as Mt Chalmers and Develin Creek) offers synergies in hauling ore, sharing infrastructure, and reducing operational costs. These factors make Mount Mackenzie a robust project that can readily add value.

The existing pit optimisation for Mount Mackenzie appears less than ideal. The pit design is constrained by assumptions (including mining and processing parameters) that are likely outdated or overly conservative. A reworked pit optimisation, informed by current metallurgical testwork and market conditions, would more accurately capture Mount Mackenzie’s potential.

The present Mineral Resource Estimate clearly needs an update. With some targeted drilling, refining the geological model, and applying modern estimation methods, QMines could feasibly increase both the quality and quantity of reported ounces. An updated JORC that reflects the newest data and improved parameters could significantly expand Mount Mackenzie’s total resources and further underscore its commercial strength.

The Mount Mackenzie deposit's epithermal nature suggests an underlying or adjacent porphyry system could be—a prospect that significantly enhances the exploration potential. In many cases, epithermal deposits represent the shallower expression of a deeper magmatic system, and it is not uncommon for porphyry mineralisation to occur beneath or in close proximity to the epithermal zone.

I know there has been interest from Rio Tinto, which indicates that their geological teams likely recognised geochemical or structural signatures consistent with a porphyry system within this region. Concurrently, the fact that AngloGold Ashanti hold the ground adjacent lends further credence to this potential, as these major mining companies typically secure ground where they foresee a favourable magmatic system capable of hosting a porphyry deposit.