Australian mining company, QEM Limited (ASX: QEM) owns tenements in Julia Creek, North Western Queensland, Australia.
On 7th May 2019, QEM released an announcement regarding 26KM 2D seismic survey commenced at its flagship Julia Creek Project. The survey aims to acquire knowledge on the geological structure of the seams across the project area which will increase the geological confidence of the deposit.
This announcement comes after QEM awarded the contract to seismic exploration company, Velseis Pty Ltd, to carry-out a 22km 2D seismic program for the project site at Julia Creek in Queensland’s resource rich, NW mining precinct. The company stated that it intends to commence the program within next two months subject to weather conditions.
Based in Australia, Velseis Pty Ltd offers a fully integrated range of seismic technology for the services including contracting work for coal, minerals and hydrocarbon explorations. Velseis is a leading company in this field with over 25 years of experiences and demonstrated capabilities.
As per the latest announcement, seismic surveying program has already been started at QEM’s Julia Creek area of North Western Queensland covering 496km². The company believes that seismic study of the location will provide greater certainty to existing geological conditions and resource models for its operations.
QEM Limited Executive Director David Fitch commented “The commencement of the seismic program is an import step towards the development of QEM’s flagship Julia Creek vanadium / oil shale project. The data gathered through this survey, coupled with the upcoming drill program, will well position the Company in further developing this exciting opportunity.”
The information collected in the survey is expected to provide the basis for the mine design and pre-feasibility studies of the project. QEM stated that it anticipates Velseis Pty Ltd to complete the survey by July 2019.
Julia Creek Vanadium/oil shake project is QEM’s flagship project located in North Western Queensland. The data and information obtained from the study will reportedly give the significant insights for the whole project as well as upcoming drilling campaigns.
Julia Creek Project consists of three tenements which forms a part of massive Toolebuc Formation, known for the high vanadium potential. QEM is dedicated to exploit and explore these resources. The activities pipeline of the Julia Creek project primarily consists of Seismic Program, drilling program (expected to commence by Q2 2019) and test works using Petroteq’s technology.
Petroteq’s proprietary technology was reportedly able to extract hydrocarbons from QEM’s Julia Creek Project. The company commenced Stage 2 optimisation testing in March 2019 quarter to determine the final yield of the hydrocarbon products and full results of the testing are eagerly anticipated in Q2, 2019.
QEM stock price is trading at $0.120, down 14.286%, as at 8 May 2019 (3:36 PM AEST). Over the past 6 months, the stock has gone down by 24.32%; however, YTD return remains positive at 16.67% given the listing of the company on 19 October 2018.