Young Australian Maiden JORC Resource An Initial Mineral...

Young Australian Maiden JORC Resource

An Initial Mineral Resource estimate of 2.13Mt @ 1.0% Cu; for
21,200 tonnes of contained Copper
Resource mineralisation open along strike and at depth
Queensland Mining Corporation is pleased to announce a maiden resource estimate for
the Young Australian Project near Cloncurry, in North Queensland. The Young Australian
Project comprises the Young Australian leases (contiguous MLs 7511, 7512 and 90099)
and the Eastdrift lease (ML 90084), about 300 metres along strike to the northeast.

Prospect
Tonnes
(Mt) Cu (%)
Co
(ppm) Ag (g/t) Cu (kt) Co (t)
Ag
(koz)
YA
Leases
Indicated 1.107 1.14 120 2.4 12.6 133 85
Inferred 0.412 0.9 79 0.9 3.7 33 12
Ind & Inf 1.519 1.1 109 2.0 16.3 165 97
Eastdrift
Inferred 0.610 0.8 - - 4.9 - -
Total
Indicated 1.107 1.14 120 2.4 12.6 133 85
Inferred 1.022 0.8 32 0.4 8.6 33 12
Ind & Inf 2.129 1.0 78 1.4 21.2 165 97
Table 1: Young Australian Mineral Resources as at 31 Jan 2011 (0.2% Cu cut-off grade)
Note: Figures are rounded, and do not include extensions beyond QMCs lease boundaries.
Young Australian Leases
Mineralisation at the Young Australian Leases is confined to three parallel lodes (West,
Mid and East) striking NE-SW (See Figure1). The lodes are interpreted as dipping steeply
to the northwest, to depths of up to 180 metres below surface.
We are very pleased to announce this maiden resource of 21,200 tonnes of contained
copper, which at current metal prices of some AUD9,840 per tonne implies substantial
value to our Company, said Howard Renshaw, MD of QMC we will now run a vigorous
programme to upgrade the quality of this resource estimate and to follow-up on the three
copper lodes which are still open along strike and at depth. This is a very important
deposit for the Company and compliments the nearby Kuridala resource of 60,000 tonnes
at 0.84% Cu at 0.2% cut off he added. (See Figure2)
Queensland Mining Corporation Limited
Telephone: 61 2 9251 6730
Email: [email protected]
Figure 1: Young Australian Leases: Resource Domains (0.2% Cu Cut-Off Grade)
The drilling at the Young Australian leases was conducted in four campaigns (See
Table2). The first two campaigns were conducted by Mount Isa Mines Limited (MIM), and
defined the resource to a depth of about 60 metres before open pit mining. The two most
recent campaigns were undertaken by QMC in May 2008 and August-September 2010.
These campaigns tested the extent of mineralisation beyond the existing pit. This drilling
extended the known mineralisation, which however remains open along strike and at
depth.
Company Type No. Holes Metres
MIM DDH 9 749
MIM RAB 44 1,498
QMC RC 15 1,892
QMC RC 23 2,631
91 6,770
Table 2: Young Australian Leases: Drillholes
Queensland Mining Corporation Limited
Telephone: 61 2 9251 6730
Email: [email protected]
In addition, QMC has estimated that mineralised potential for the southwest extension to
the Mid Lode within ML 90099 is:
100,000 to 150,000 tonnes at 0.5-1.5% Cu, 1.5-2.5g/t Ag, 100-200ppm Co
Note: Mineralised potential is contained within the wire frame of the mineralisation
model, but classification as an Indicated or Inferred Resource under the JORC Code is
precluded by data spacing. There is reasonable expectation, but no certainty, that further
exploration will result in the conversion of this material into a JORC-compliant resource.
Further target mineralisation for the southwest extension of the West Lode within ML 7512
and ML90099 is estimated as:
200,000 to 400,000 tonnes at 0.8-1.4% Cu
Note: Target mineralisation exists as the likely extension of an open-ended resource
zone. There is no certainty that further exploration will result in the conversion of this
material into a JORC-compliant resource.
Figure 2: Young Australia Leases: View of Western Lode (green), Mid Lode (red), East Lode (purple), existing open
pit (brown) and drillholes (blue), looking north.
Queensland Mining Corporation Limited
Telephone: 61 2 9251 6730
Email: [email protected]
Eastdrift Lease
The Eastdrift mineralisation is to date defined by six reverse circulation drill holes on two
fence-lines about 50 metres apart. The holes were drilled by QMC in 2008 and 2010.
The mineralised zone appears to have a similar strike direction and dip as the lodes
delineated in the Young Australian leases, and is aligned with the Mid Lode. The
mineralisation wireframe extends from a depth of approximately 20 metres below surface
to a depth of about 180 metres below surface.
Future Programme
QMC has planned follow-up RC/Diamond drilling programme up to 5,000 metres as soon
as possible subject to rig availability and seasonal condition. Although the programmes
will be predominantly reverse circulation, at least four of the planned holes are proposed to
be diamond drilled. The principal objectives are to:
Upgrade resource classification in the portion of the resource potentially accessible by
open pit mining.
Define the southwestern extensions of the Western Lode and the Mid Lode, and the
northeastern extension of the East Lode, all of which appear open-ended.
Investigate depth extensions of the Mid Lode, which again appears open ended.
Provide core samples for metallurgical testwork and processing design for recovery of
copper, cobalt and possibly silver as well as geotechnical analysis.
The programme is focussed entirely on QMCs own leases. It is possible that the lodes
may extend into the surrounding EPM, which is held by another company. QMC is holding
discussions with the tenement holder with a view in developing and expanding the
exploration programme.
Information on Mineral Resource Estimation
The mineral resource models were undertaken by block modelling within wireframes
snapped to the drillholes. Block grades were assigned using ordinary kriging after
assessing variography.
Drillhole collars were surveyed using a differential GPS at sub-metre accuracy. QMC
conducted 41 downhole surveys for the 2008 drilling programme and 61 downhole surveys
for the 2010 drilling programme.
Geology logs were not available for the MIM drillholes. However, most of the MIM holes
intersected mineralisation within or around the existing open pit. Although mineralisation
is visibly distinguished in the walls of the open pit, Indicated Resource estimation is based
solely on data available from QMCs 2008 and 2010 drill programmes.
Queensland Mining Corporation Limited
Telephone: 61 2 9251 6730
Email: [email protected]
As all QMCs drilling to date at Young Australian has been reverse circulation, MIMs
estimate for in-situ bulk density has been adopted. Future diamond drilling will provide
additional data for these estimates.
QMC Summary of Mineral Resources
QMCs JORC resources are now estimated at:
36 Mt @ 0.99% copper equivalent (0.2% Cu cut-off1)
360,000 tonnes of copper equivalent metal; comprising:
> 265,200 tonnes copper; and
> 23.4 million pounds cobalt; and
> 202,000 ounces gold.
This maiden indicated and inferred resource at the Young Australian has increased QMCs
reported resources by 21,200 tonnes of copper and an increase of 369,600 pounds of
cobalt.
For further details please contact:
Howard V. Renshaw(Managing Director) Tel: (+61 2) 9251 6730
Email: [email protected]
David Sasson Tel: (+61) 0411 468 966
(Northfield Communications - FIRSt)
or visit our Website at: www.qmcl.com.au
Information in this report relates to Exploration Results and Mineral Resource estimates based on information compiled
by Dr GuojianXu and Mr James McIlwraith. Dr Xu is a Member of the Australasian Institute of Mining and Metallurgy and
a Fellow of the Society of Economic Geologists. He is a consultant to Queensland Mining Corporation Limited through
Redrock Exploration Services Pty Ltd. Mr McIlwraith is a Member of the Australasian Institute of Mining and Metallurgy
and is a consultant to Queensland Mining Corporation Limited through JM Geological Consulting Pty Ltd. With respect
to their respective contributions, these persons qualify as Competent Persons as defined in 2004 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Xu and Mr McIlwraith
consent to the inclusion in this report of the matters based on the respective information provided by each of them, in the
form and context in which it appears.
1Flamingos 117,000 tonnes at 6% Cu and 1.8 g/t Au is at 1% cut off.