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QX Resources (ASX:QXR) on track to unlock value with drill program in Central Queensland

Source: QXR ASX Update, 9 February 2021

Summary

  • 2020 was a terrific year for gold, which is expected to experience strong demand during the current year.
  • QX Resources is a gold exploration company, focused on progressing developments across its Queensland projects.
  • QXR is set to commence drilling at the Lucky Break deposit to test depth extensions of known mineralisation, new anomalies and structural trends.
  • QXR has been expanding its footprint in the Central Queensland goldfields with the recent addition of the Llanarth tenement application.

The rising inflationary forces and the anticipated growth in demand for gold fuelled by the resurgence in gold jewellery demand in 2021 may change the game for the yellow metal.

Gold enjoyed an unprecedented rally in 2020, surpassing the US$2,000 level for the first time in the history amid the pandemic crisis. The COVID-19-induced volatility lit a fire under gold last year, as investors turned to the safe haven seeking stability in the face of market volatility. 

The price of the yellow metal is still hovering around the US$1,700 an ounce level. With recovering consumer sentiment, demand for the yellow metal is expected to remain positive in the near term.

All in all, these scenarios have been encouraging for the gold exploration endeavours of QX Resources Limited (ASX: QXR), which is focused on unlocking the potential of its Central Queensland goldfields projects.

Why Central Queensland for QX Resources?

QXR’s partnership with Zamia Resources Pty Ltd (Zamia) has paved the way for the company to leverage high growth opportunities offered by the project. Zamia owns four tenements covering ~115 square kilometres, which house two historical open pit gold mining centres at Belyando and Lucky Break, in addition to several unexplored targets.

In early February 2021, the company secured a new tenement package at the Llanarth project in the Drummond Basin, enhancing the gold player’s exposure to over 350 square kilometres at the renowned basin. The new tenement is considered prospective for both gold and silver mineralisation.

The Central Queensland gold projects are situated in the Drummond Basin, which has a gold endowment in excess of 6.5 million ounces complemented by a long heritage of gold mining.

Important Read: How QX Resources (ASX:QXR) can rev up Australian gold production?

Inching Towards the Maiden Drilling Program

The Lucky Break deposit is located along the Gregory Highway on EPM 14790 tenement. The technical team of QXR has been proactively analysing the historical drilling data along the 560-metre Lucky Break gold strike.

The deposit was previously mined by East-West Minerals NL (1987-88), extracting 90 kt with a grade of 2.4 g/t gold from the oxide mineralisation to a depth of only 15 to 20 metres.

Gold Mineralised Lode at Lucky Break (Source: QXR ASX Update, 9 February 2021)

Must Read: QX Resources (ASX: QXR) to Get Drill Rods Spinning at Lucky Break

The wireframe modelling of the mineralised gold lodes has confirmed the potential of the Lucky Break deposit at depth. Consequently, QXR intends to commence a 2,000 metres RC drilling program in early April2021, contingent on the prevailing weather conditions.

The drilling campaign would target identified anomalies and the structural trends along with the infill, depth extension and twin studies.

Stock information - QXR last traded at $0.016 a share on 15 March 2021 with a market capitalisation of $8.54 million.

Read Here: QX Resources (ASX:QXR) Boosts Foothold at Drummond Basin With New Tenement

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