Published On: December 18th, 2022
QX Resources Limited (ASX: QXR) is an Australia-based battery mineral exploration and development company. The company has lithium assets in Western Australia and gold assets in Queensland. Formerly known as HIPO Resources Limited, QX Resources Limited was listed on the Australian stock exchange (ASX) on 17th February 2011 in the Basic Materials sector.
QX Resources Limited Projects
The group’s lithium strategy is centred around hard rock lithium projects in Western Australia’s prolific Pilbara province, where it holds four key projects spanning a total area of 335 km2 in strategic proximity to some of Australia’s largest lithium deposits.
Lithium Projects in the Pilbara region
The Pilbara Lithium projects consist of the following:
- Turner River project: The Turner River project is located in a prime address, 15km south of the Wodgina Project, held by Mineral Resources, one of the largest hard rock lithium deposits globally. The 100% owned 84 km2 area contains a series of high-priority lithium targets with high-grade rock chip assays of 1.6% Li2O, 1.1% Li2O and 4.9% Li2O. Recent drilling indicates significant areas of lithium-bearing pegmatites and lithium-rich micas (lepidolite). Drilling targets the potential for either lithium mica and spodumene-bearing pegmatites or a new large tonnage hard rock lithium deposit near the top of a lithium mica-rich granite.
Split Rock Project – Simplified Geology Map
- Split Rock project: The Split Rock project covers an area of 35 km2 in the Pilbara Lithium Province, located north of Newman. The project is located along the margin of the Split-Rock Supersuite, a high-prospect region for lithium pegmatites. The project is also prospective for copper, gold, lead, silver, and zinc.
- Western Shaw project: Located in the Pilbara Lithium Province, WA, the project spans 96 km2 and lies on the southern end of the Western Shaw Greenstone Belt. The project is in a region dominated by ‘nested’ granite plutons, many of which are known to host lithium-bearing pegmatite dykes and is also prospective for iron ore and nickel.
QXR is developing two Central Queensland gold projects – Lucky Break and Belyando – and holds a 70% interest, with an option to increase to 90%, through an earn-in agreement with Zamia Resources Pty Ltd. Both projects are strategically located within the Drummond Basin. This region has >6.5moz gold endowment. The mines in the region have compelling under-explored geology.
The project consists of two major gold mines:
- Lucky Break Gold Mine: The mine was mined during 1987–1988 and has produced 7,000 ounces of gold.
- Belyando Gold Mine: The mine was discovered in the 1980s, has seen historical exploration and produced approximately 86,000 ounces of gold between the 1980s and 1990s.
QX Resources holds seven exploration licences spanning an area of 430 km2.
Big Red Prospect (EPM 17703) is a key focus with extensive near-surface gold mineralisation across a large strike area. A trenching program recorded multiple intersections of high-grade gold mineralisation, including:
- 9m @ 5.9 g/t Au,
- 8m @ 7.1 g/t Au (including 2m @ 23 g/t Au) and
- 11m @1.89g/t (including 1m @ 11.3 g/t Au).
QXR Queensland Gold Project – Location, Drummond Basin, QLD
QX Resources acquired exploration licences E47/4462 and E47/4463 at the West Pilbara Project. QX Resources holds 50% of the exploration licences, while Pilbara Base Metals Pty Ltd has the additional 50%. The areas covered by the exploration licences are considered prospective for orogenic-style gold mineralisation. As seen from the local and regional mafic intrusions, nickel and other base metal assets are also forthcoming in the area. While some intrusions have been targeted, there has been no historic program to locate nickel mineralisation.
West Pilbara tenement and project location
QX Resources Limited’s MD, Steve Promnitz
Steve Promnitz, Managing Director of QX Resources, was previously the Managing Director of Lake Resources NL. During his tenure at Lake Resources, he developed a previously untested lithium brine project in Argentina, forming a $2 billion market value ASX200 company from an AUD 1 million startup. Before joining Lake Resources, he worked in the gold sector in small and mid-tier companies.
He was appointed as the Managing Director in September 2022. Steve said, “QX Resources has accumulated projects with a high prospect for battery minerals and gold. I plan to advance these assets through my skills and extensive networks and expand the focus on battery minerals .”
Steve Promnitz, Managing Director of QX Resources Limited
QX Resources Limited: Key Differentiator from other Battery Minerals Developers
To accelerate access by the electric vehicle industry to desperately needed battery minerals, QX Resources (ASX: QXR) is directly linking the end users to multiple ”upstream” high-quality exploration and development projects across Australia. The Managing Director, Steve Promnitz, brings global relationships with end users to an early-stage developer in QX Resources.
QX Resources Limited: Company growth and financials
Listed in 2011, QX Resources has a share price of AUD 0.046 and a 52-week range of AUD 0.018 to AUD 0.096. The company holds a market capitalisation of AUD 40.57 million and a sector rank of 370 (out of 919). At the end of the previous quarter, QX Resources had AUD 3.6 million in cash and equivalents, 881 million shares, and 90 million share options.
QX Resources: Encouraging Results from RC Drilling at Turner River Project
QX Resources Limited has received encouraging results of their reverse circulation (RC) drilling programme at the new lithium project in Turner River, Pilbara Lithium Province, Western Australia. The drilling programme included six drilling holes in a 1,500-metre drilling programme. The drilling was performed in a 400m x 300m area.
Drilling holes (numbered 1 to 6) at the Turner River project.
The drilling programme results indicate that the tenement has significant areas with depositions of lithium-bearing pegmatite. During drilling, pegmatite and lithium-rich mica were observed (this was the programme’s aim).
QX Resources aims to release the results of the RC drilling programme within six weeks. The programme aimed to determine the potential for lithium-rich mica or spodumene-bearing pegmatite. The team at QX Resources is considering an extension of the drilling programme.
Speaking on the development, Managing Director Steve Promnitz said, “The observed lithium-rich mica and pegmatite in drilling pads and chips is a sign that there is potential for a larger target than previously expected. We are pursuing a larger lithium project, and this is a great start.”
Lithium-bearing mica seen in the drilling pads and chips from the RC drilling programme.
QX Resources, an Australian mining company, has diverse gold, rare earth elements (REE), and lithium assets in Western Australia and Queensland. Some reasons investors should keep an eye on QX Resources:
- QX Resources has four high-prospect projects in Australia: the Queensland gold project, the Pilbara lithium project, the Antony molybdenum project and the West Pilbara project.
- QX Resources recently announced the rock chip sampling results at Turner River, Pilbara Lithium Project, which returned lithium grades of up to 90% Li2O.
- QX Resources has commenced Phase 2 of the trenching program at Big Red and Red Dog at the Queensland Gold projects. The program includes 8-10 trenches. Phase 1 of the trenching program returned high-grade results.
- QX Resources’ exploration and technical team is currently assessing the West Pilbara project, and a reconnaissance exploration program and sampling are planned.
- QX Resources has received promising results at Turner River and is in talks to expand the RC drilling project.
Visit the official website to learn the latest ASX news about QX Resources.