Latest developments bolster QX Resources’ (ASX:QXR) journey in battery minerals space

Highlights

• QX Resources is tapping hard-rock lithium opportunities in Western Australia

• The company has completed extensive sampling across its lithium projects with assays expected in October 2022
• The appointment of Mr Steve Promnitz as new managing director is expected to reinforce the company’s lithium strategy

Australian diversified minerals explorer QX Resources Limited (ASX:QXR) has highly prospective lithium assets in the Pilbara region of Western Australia and gold assets in the Drummond Basin of Queensland.

Besides advancing exploration across its gold portfolio, the company has sharpened its focus on its lithium strategy, which is designed to leverage strong market fundamentals amid the growing battery minerals sector. Through targeted mergers and acquisitions, the company has acquired four projects having strategic proximity to some of Australia’s largest lithium deposits.

Lithium enjoys positive sentiments thanks to the rising global demand for electric vehicles (EVs). As per the Australian government’s Resources and Energy quarterly report published in September 2022, global EV sales soared 36% in the year to June 2022 compared to the same period in 2021. This growth in the EV sector was also reflecting in the price of spot spodumene concentrate, which averaged ~US$4,720/tonne in August 2022, representing over an 11X increase from the US$418/tonne recorded in January 2021.

Amid this upbeat scenario, QX Resources is advancing developments to move ahead with its lithium strategy.

New managing director to rev up lithium strategy

The company recently appointed Mr Steve Promnitz as its managing director to facilitate the growth and development of its lithium portfolio.

As the managing director of Lake Resources, Mr Promnitz guided the company in the successful acquisition and development of its lithium assets. Moreover, under his guidance, Lake Resources grew from a AU$1 million market value private company to an ASX 200 company with a strong balance sheet, as highlighted by QXR.  

Mr Promnitz has worked in the gold space, across the battery minerals of copper, nickel and rare earths, and in the broader natural resources and energy sector.

QX Resources expects Mr Promnitz to fast-track the development of its assets while also assessing new battery mineral projects that complement the portfolio.

QXR taps opportunities across battery materials

QXR states that it has assembled a quality portfolio of near-drill-ready lithium hard rock assets in Western Australia with some very promising geology. Its hard rock lithium tenement package, both granted and under application, is spread over more than 350km². The company believes that hard rock lithium projects have the characteristic of a short time period between various project phases, from discovery to development and production.

The company’s Turner River project (E45/6042 & E45/6065), covering 84km² in leases, is in close proximity to the Wodgina lithium mine, one of the largest hard rock lithium deposits globally. QXR has encountered numerous pegmatites with an elevated value of lithium and rare earth elements (REE). Also, the new setting, which is spread over hundreds of meters, has samples containing up to 4.9% LiO₂ at the surface.

The other two lithium projects under the company’s belt are Western Shaw (E45/4960 & E45/6107) and Split Rock (E46/1367).

QXR has wrapped up a follow-up sampling program at its 100%-owned Turner River, Western Shaw and Split Rock Lithium projects. Assays for 259 rock chip samples submitted to ALS Laboratories in Perth are expected in October.

To know more about the latest update on Turner River Project, click here 

As per the latest update, the company remains well funded with AU$3.6 million cash and equivalents.