Mapping QX Resources’ (ASX: QXR) advances in battery minerals exploration during June quarter

Highlights

• QX Resources marched through June 2023 quarter with a focus towards advancing its hard rock lithium project portfolio in Australia.
• At the Turner River project, drill outcomes validated a lithium mineralisation halo with encouraging rare earth assays.
• Bayrock Resources, in which QXR has a significant holding, saw excellent Ni-Cu-Co results from diamond drilling at its Sweden-based Lainejaur project.
• In May this year, the company signed a letter of intent over the Liberty Lithium project in the western USA.
• At the quarter end, the company had AU$1.8 million in cash and investments of AU$145,000.

With a focus on battery minerals, QX Resources Limited (ASX: QXR) continues to march forward to advance its hard rock lithium assets in Australia. The company currently operates four 100%-owned hard-rock lithium projects, namely Western Shaw, Turner River, Yule River, and Split Rock.

In this article, we will touch upon the major updates on operational front from the latest quarter ended 30 June 2023. 

• Exploration at Pilbara hard rock lithium projects

 

Location map of QXR’s Pilbara Lithium Projects
Data source: company update

The company had initiated a drilling program of 12 holes in late 2022 at the Turner River hard rock lithium project. The program was followed by a 10-hole reverse circulation drill campaign.

Results from the Turner River drill campaign were announced during the June quarter that validated a lithium mineralisation halo.

Data source: company update

• Investment in Bayrock Resources Limited

In March, the company joined hands with Bayrock Resources Limited to assist the latter with development and financing of its Sweden-based Lainejaur and Northern Nickel Line projects.

In the same month, QXR reported the commencement of diamond drilling at the Lainejaur project. The high-grade diamond drill results included 4.7 metres at 2.0% nickel, 1.6% copper and 0.1% cobalt from over 280 metres downhole.

Diamond drillhole LAI23001 hit the target sulphide mineralisation. The drillhole hit minor disseminated sulphide mineralisation from ca. 260m above a heavily mineralised gabbro with different amounts of chalcopyrite, pyrrhotite, and pentlandite ranging from 284 to 290m.

The results confirmed the historic mineralisation and geological interpretation of high-grade Ni-Cu-Co mineralisation.

Map of the Bayrock battery mineral projects, including Lainejaur
Data source: company update

Diamond drilling is being undertaken at Bayrock’s Vuostok project, located within the trucking distance of Lainejaur.

• Lithium Brine Project in the US

In May this year, QXR signed a letter of intent over a highly prospective US-located lithium brine project. With the LOI, the company secured a 75-day exclusivity period for due diligence and negotiation of terms for the acquisition of a 75% interest in the Liberty Lithium project.

• The Rights Issue

After the June quarter end, Bayrock raised AU$1.8 million in a rights issue at AU$0.03 apiece. The existing Bayrock shareholders subscribed for over AU$600,000.

Prospects for upcoming quarters

With AU$1.8 million in cash and investments of AU$145,000 as at the end of the June 2023 quarter, QXR believes that it is ‘sufficiently funded to advance its exploration programs.

The company is now looking forward to begin a month-long program of surface rock-chip sampling as well as geological mapping across its Pilbara hard rock lithium projects.

Also, the company intends to conduct airborne geophysics survey, initially over the Turner River Project and later over other areas. The focus would also be on detailed spectral image analysis around pegmatite zone.

The ASX-listed company plans to undertake extensive trenching and sampling across Turner River and new areas of interest to expand the sampled mineralised envelope before follow-up drilling.  

Also, the company intends to initiate a Mining Lease application over its ‘Anthony’ molybdenum deposit, previously upgraded to a JORC-2012 compliant Indicated and Inferred Mineral Resource estimate of 24,700 tonnes (53.7 million pounds) of contained molybdenum in sulphide, transition (partial oxide) and oxide zones from surface.

QXR shares traded at AU$0.022 on 24 July 2023.