QX Resources (ASX:QXR) eyeing to cash in on burgeoning battery minerals market

Highlights

• Diversified battery minerals explorer QXR has a portfolio that includes lithium, gold, nickel, and copper
• At its Pilbara hard rock lithium projects, QX Resources has completed reverse circulation (RC) drilling and results are awaited
• QXR’s strategic investment in Bayrock Resources, which holds highly prospective nickel projects in Sweden, provides it the opportunity to tap the wider EU battery markets

Australia's listed explorer QX Resources Limited (ASX: QXR), which is committed to developing battery minerals including hard rock lithium and gold assets, recently released a presentation. The presentation shines the light on the company’s varied interests that now also include exposure to Class 1 Nickel Sulphides which has potential for rapid development work.

QXR's diversified portfolio, with primary focus on the battery sector, includes its hard rock lithium project in the Pilbara (Western Australia), Class 1 Nickel Sulphides project in Sweden (Scandinavia Region), and Moly/ Gold/ Copper project in Central Queensland (Australia).

QXR cites lithium and nickel supply issues to explain how the battery minerals focused explorer seeks to play a critical role in helping meet demand levels that have exceeded supply. Besides, the projected demand for lithium also exceeds the projected production potential of the world. With respect to nickel, QXR has noted that there are limited new projects at high grade going on market.

Investment in Bayrock Resources

QX Resources has exposure to prospective nickel projects in Sweden, thanks to its collaboration with Bayrock Resources Limited (Australia). Bayrock, an Australian company, has the biggest nickel tenement portfolio in the Scandinavian country Sweden, spanning 390 sq. km. The flagship asset of Bayrock is the Lainejaur Nickel Mine, with the high-grade Vuostok project in proximity. 

The Framework Agreement with Bayrock -- in which QXR has previously invested A$585,000 -- brings the advantage of direct exposure to the EU battery markets. The company highlighted Bayrock’s  near-term goals of supplying Ni concentrate to smelters in Europe, which is to be then followed by offtake contracts to Gigafactories located in the region.

Source: QXR ASX announcement dated 22 March 2023 

Pilbara lithium hard rock projects

QX Resources' three projects include Turner River, Western Shaw / Yule River, and Split Rock. 

At Turner River, which is just 15 km from Wodgina lithium mine, preliminary results of RC drilling are awaited, with samples previously having returned up to 4.9% Li₂O at surface. At Western Shaw / Yule River, there are pegmatites with Li potential, and Split Rock (near the assets of listed companies Calidus Resources and Thor Mining) also has lithium potential.

Image description: QX Resources lithium project locations and regional setting; Source: Company website 

Mo/Cu/Au projects

This interest of QXR includes Red Dog / Big Red Gold (7m @ 7.1 g/t Gold at surface) where drilling works would commence soon; Anthony Moly deposit & Belyando Gold Mine (9m @ 1.5 g/t Gold drillhole, and Molybdenum deposit); and Creek Copper. 

QX Resources’ ASX listed shares traded at AU$0.031 on 24 March 2023.