ASX raises eyebrow after ‘bonanza’ assaying results at Mount Chalmers

QMines chairman Andrew Sparke called copper, gold, and silver assay results at Mount Chalmers “outstanding”.

Exploration equipment at Mount Chalmers.

A spike in share prices preceding the announcement of positive mineral grading results by the company exploring Mount Chalmers caused the Australian Securities Exchange to ask whether information had been leaked early - but no wrongdoing was found.

In an announcement on May 19, QMines chairman Andrew Sparke called copper, gold, and silver assay results at Mount Chalmers “outstanding”, saying they validated the company’s view that its project had “significant development potential”.

“Mt Chalmers has been dormant for over 25 years with QMines being the first Company to drill a hole since 1995,” he said.

“Our technical team has delivered this diamond program in a very quick timeframe.

“The company’s maiden RC drilling program has also now commenced and we expect to continue delivering results that will lead to a resource update in the near future.”

On the same day as the assay announcement, the ASX sent QMines a letter requesting information about the increase in the price of its shares from 29 cents at the close of trading on May 14 to 41 cents on May 18, as well as a “significant increase in the volume of QML’s securities traded” over the same period.

The ASX also queried a pause in the trading of QMines shares on the morning of May 18 pending the release of the grading announcement titled ‘Outstanding High-Grade Copper & Gold Results’.

The Mount Chalmers mine pits.

On Monday, QMines responded: it confirmed that although the company received the assay results on the afternoon of May 14, the information remained confidential and the announcement was prepared promptly, the delay between May 14 and 19 being due to its requiring the approval of the company’s board.

Nevertheless, the company said it “noticed an increase in the price of QMines’ securities and, to be cautious, applied for a trading halt pending the release of the announcement”.

It suggested the share price may have increased because of the publication of research reports and presentations, the current high price of copper and gold, the company’s listing on the Frankfurt exchange, and media coverage of the Mount Chalmers project.

QMines confirmed to the ASX that it was in compliance with listing rules.

“QMines is assured that the Information remained confidential and was not disclosed by those who knew it (other than to ASX) prior to the Announcement being released,” it said.

“The Information was known by a small number of individuals within the Company who have all confirmed that the Information was not and had not been disclosed to any other party/s.”

The QMines website says the company has taken on more than 40 local contractors and has more than 150 Queensland shareholders.