- QX Resources is set to scale up exploration activities at its projects in the Drummond Basin, Queensland.
- The Company has raised approximately AU$2 million (before costs) through a share purchase plan (SPP) and a share placement.
- Results are awaited from the first pass reverse circulation drilling undertaken on the historical Lucky Break gold mine and surrounding areas.
- QXR plans to assess the Anthony Molybdenum Project and evaluate the potential for ore sorting and scoping study.
QX Resources Limited’s (ASX:QXR) relentless pursuit to expedite its exploration efforts has given a boost to its gold projects in the world-class Drummond Basin of Queensland.
Taking another strategic step forward, the Company has recently raised approximately AU$2 million (before costs) through a share purchase plan (SPP) and a share placement.
The capital raising bolsters the Company with the necessary funding to significantly scale up exploration activities at its core projects.
Capital raising to fire up exploration endeavours
Under the SPP, applications worth AU$939,000 were received from existing eligible shareholders for 62,600,000 new fully paid ordinary shares. The SPP offered shares at an issue price of AU$0.015 a share.
The latest round of capital raising comes just a few weeks after the Company successfully completed a placement in mid-May, raising AU$1.05 million before costs.
Data source: QXR update, 8 June 2021
Exploration journey at the premium gold projects
RC drilling at Lucky Break - Early last month, QXR completed a 1,500m reverse circulation (RC) drill program at the Lucky Break gold mine, located at the Clermont Goldfields in the Drummond Basin.
The first pass drilling program was designed to evaluate the mineralisation at depth and to test mineralised shoots down dip at the previously mined gold deposit. The small Lucky Break South pit was previously mined as a small high-grade deposit.
Assay results from the program, which was completed under budget and ahead of schedule, are expected shortly. Meanwhile, QXR continues to assess opportunities for follow up exploration at Lucky Break and surrounding areas, along with other prospective areas.
The outcomes of the RC drilling program will assist in shaping the exploration strategy for all project areas and additional evaluation of project development initiatives for gold and a range of other commodities.
Follow-up exploration at Red Dog and Ibis - Previously, QXR conducted soil sampling and geophysics at Red Dog and Ibis. In the Big Red area of the Disney tenement (EPM 17703), the Company completed a detailed infill soil sampling program of 250 plus samples, which delivered an expanded and clear gold anomaly, dubbed Red Dog with a 675m mineralised trend southwest of the Big Red mineralisation zone.
At the Ibis prospect located on southern EPM 15145, infill soil sampling revealed a distinct 600m diameter gold anomaly through soil cover.
The explorer is finalising plans for follow-up exploration activities at the two prospects.
Anthony molybdenum deposit evaluation - Additionally, the Company considers the Anthony molybdenum deposit as an exciting opportunity. QXR plans to assess the historical Anthony molybdenum project and evaluate the potential for ore sorting and scoping study.
Molybdenum prices have been surging and the preliminary work by QXR’s technical team suggests a strong possibility of significant upside at the molybdenum project.
Securing a lion’s share of the prospective land
QXR owns a 50% interest in Zamia Metals’ four highly prospective exploration permits in the Central Queensland goldfields. The permits house two open-pit historical gold mines as well as multiple underexplored targets.
It is to be noted that the gold projects sit within the prolific Drummond Basin, which holds a track record for >6.5 moz gold endowment with an extensive mining legacy.
Source: QXR update, December 2020
The Company holds the right to increase its interest from 50% to 70% in the permits by incurring an expenditure of AU$500,000. So far, the Company has spent ~AU$475,000 and is required to spend only AU$25,000 to acquire the additional 20% stake.
With the completion of further exploration spending-related milestones, QXR can raise its stake in the permits to as high as 90%.
QXR traded at AU$0.016 a share on 21 June 2021 at 02:34 PM AEST with a market capitalisation of AU$9.99 million.