Overview
The encouraging progress of electrical automobiles (EVs) is having optimistic results on the demand for battery metals reminiscent of lithium. International lithium consumption is anticipated to succeed in 1,427 kt of lithium carbon equal (LCE) in 2025, up from 797 kt of manufacturing in 2022, based on a Q2 2023 report from Australia’s Workplace of the Chief Economist.
EVs are driving the rising demand for lithium-ion batteries ensuing within the progress of the market globally. This places the deal with junior mining firms which might be busy creating crucial mineral tasks world wide. With lithium costs experiencing a downward development, now could possibly be an opportune time for traders to get into the lithium house because it stays a crucial ingredient for batteries and electrical automobiles. With lithium belongings in Tier 1 mining jurisdictions, Australia-based QX Assets (ASX:QXR) affords traders publicity to this quickly increasing market.
QXR’s lithium technique is centered across the growth of its Liberty Lithium Brine Venture in California and a portfolio of lithium tasks inside the Pilbara area of Western Australia. Liberty Lithium is among the largest single lithium brine tasks within the US with contiguous claims over 102 sq. kilometres (equal to twice the world of Sydney Harbour). The geological setting of the venture mirrors Albemarle’s Silver Peak lithium brine deposit in Clayton Valley, Nevada, and main Argentina brine tasks. Like Silver Peak, QXR’s Liberty could possibly be a large-scale, producing lithium brine asset.
Downstream producers within the US, together with automakers, are in want of securing lithium provide. As such, automakers within the US have been making vital investments in lithium tasks. The newest was a $100-million funding by Stellantis into Managed Thermal Assets, which owns a lithium venture in California. It’s encouraging to notice rising curiosity from end-users investing immediately into tasks making Liberty Lithium a horny alternative.
The corporate has an indicative growth plan involving drilling, sampling and testwork beginning with two permitted drill holes over the primary a part of the floor lithium anomaly, deliberate for November-December 2023. The purpose is to establish lithium-bearing brine aquifers at depth, which is anticipated to result in detailed drilling towards an preliminary useful resource by mid-2024. QXR has adequate monetary muscle to hold out the drilling and different work, particularly with the latest AU$3 million elevate through a personal placement and entry to a further AU$3 million below an at-the-market (ATM) facility.
QXR intends to gather massive volumes of lithium brines and submit them for testwork with numerous direct lithium extraction (DLE) suppliers. DLE applied sciences has the potential to considerably enhance the provision of lithium from brine tasks given larger recoveries, together with the bonus of sustainability and ESG advantages. A variety of confirmed DLE applied sciences are rising and being examined at scale, presenting a possibility for QXR to search out strategic companions.
The corporate is headed by managing director Steve Promnitz, who has a confirmed monitor file within the lithium sector. He efficiently remodeled Lake Assets, a lithium brine developer, from a $1-million market worth personal firm to an ASX-listed firm with an AU$2.1-billion market capitalization. His geology and chemistry background together with expertise of working in main mining firms, reminiscent of CRA and Rio Tinto, ought to show useful for QXR.
Firm Highlights
- QX Assets is an Australia-based firm targeted on the exploration and growth of battery minerals, with an enormous lithium brine venture within the US, exhausting rock lithium belongings in a primary location in Western Australia (WA), copper-molybdenum-gold belongings in Queensland and a strategic funding in nickel sulphides in Sweden.
- Liberty Lithium Brine Venture, positioned in California, is taken into account analogous to Albemarle’s Silver Peak deposit and is among the largest single lithium brine tasks within the USA with contiguous claims over 102 sq. kilometres.
- The possibly large-scale lithium brine venture positioned within the US is of serious significance, as individuals within the electrical automobile worth chain are aggressively searching for to safe home battery minerals provide to steadiness potential supply-side dangers to the power transition.
- QXR goals to begin drilling of the Liberty Lithium Venture and has secured A$3 million in funding together with entry to a further A$3 million below an at-the-market facility. The goal is to publish an preliminary useful resource on the venture by mid-2024.
- Moreover, the fundraise additionally affords flexibility to ramp up exploration actions throughout its Pilbara lithium exhausting rock venture that are additionally very thrilling prospects. It has 4 lithium exhausting rock tasks within the Pilbara Province spanning 350 sq. kilometres and in proximity to a few of Australia’s largest lithium deposits and mines.
- The corporate’s different belongings embody the copper-gold-molybdenum venture in Queensland and a 39-percent stake in Bayrock Assets, which owns a portfolio of battery metals tasks in Sweden.
Key Initiatives
Liberty Lithium Brine Venture
QXR has entered right into a binding settlement with vendor ID Lithium LLC (IGL) to amass a 75 p.c curiosity within the Liberty Lithium Brine Venture in California. Individually, QXR has agreed to buy a small bundle of leases adjoining to Liberty Lithium to consolidate the world, requiring fee of US$100,000 money and QXR shares of the identical worth to the third-party leaseholder.
The Liberty Lithium Brine Venture, positioned in SaltFire Flat, California, is made up of 1,269 contiguous claims over 102 sq. kilometres (10,230 hectares). It is among the largest single lithium brine tasks within the US. The venture is positioned close to long-life evaporation operations and is well-serviced by roads and energy in a area eager to be a part of the power transition.
Venture Highlights:
- Promising Geology. The venture has an identical look to well-known lithium brine tasks in Argentina/Chile, rising confidence within the potential for large-scale lithium discovery. QXR has indicated it’s seeing vital native county and regulatory curiosity in creating Liberty Lithium in direction of manufacturing, pushed by the help for battery minerals manufacturing on this a part of California.
- Robust Sampling Outcomes. Sampling on the venture has returned as much as 215 mg/L lithium in brine at floor. These elevated lithium outcomes prolong over a powerful distance of 10 kilometres, demonstrating the strong potential of the Liberty Lithium Venture. Related close by brine tasks, reminiscent of Pure Vitality Minerals’ Clayton Valley venture simply throughout the California/Nevada border, are advancing to potential financial growth on decrease grades downhole of 110 to 160 mg/L lithium. Geophysical evaluation exhibits a big basin over 1,000 metres deep and indicating brine aquifer targets at depth.
- Upcoming Drill Program. QXR will undertake a diamond drill program with two permitted drill holes totaling 1,000 metres, together with downhole sampling and geophysics, focused on the centre of the floor lithium anomaly. Drilling is anticipated to start in November-December 2023. Bulk volumes of lithium brines will probably be submitted for testwork with numerous DLE suppliers. The purpose is to establish lithium-bearing brine aquifers at depth, which is anticipated to result in an preliminary useful resource by mid-2024.
- Future Partnerships. Finish-users, DLE expertise suppliers, venture builders, and battery makers have already intimated curiosity in taking part with QXR as soon as lithium brines are recognized in drill holes.
Hardrock Lithium – Pilbara
Along with its California asset, QXR has a extremely potential portfolio of lithium tasks inside the Pilbara area of Western Australia, protecting a mixed space of 355 sq. kilometres. The portfolio includes 4 exhausting rock lithium tasks – Turner River, Western Shaw, Cut up Rock and Yuletide River.
Turner River Venture
The Turner River lithium venture is positioned about 120 kilometres south of Port Headland and is accessible through the Nice Northern Freeway. It’s positioned about 12 kilometres south of the Woodgina lithium mine website, one of many world’s largest hardrock lithium deposits.
Rock chip sampling on the Turner River Lithium venture returned grades of as much as 4.90 p.c lithium oxide in samples of lepidolite. Assay outcomes from extra rock chip sampling returned 1.6 p.c and 1.1 p.c lithium oxide. Pegmatites have been noticed in different areas at Turner River, which will probably be drilled in future drilling campaigns.
Western Shaw Lithium Venture
The venture spanning 96 sq. kilometres is positioned 220 kilometres southeast of Port Hedland in Western Australia with entry through the Nice Northern Freeway. A number of pegmatites have been recognized and sampled within the west and south of QXR’s Western Shaw leases. Pegmatites appeared bigger and extra plentiful within the southern part. Quite a few pegmatites returned encouraging lithium outcomes from cell XRF evaluation. Eighteen samples returned between 300 and 600 components per million (ppm) lithium in pegmatites at Western Shaw.
Cut up Rock Venture
The venture covers an space of 35 sq. kilometres and is roughly 200 kilometres southeast of Port Hedland and 180 kilometres north of Newman. It’s positioned alongside the southeast margin of the Cut up-Rock Supersuite, which is taken into account regionally potential for lithium-bearing pegmatites. The venture is well accessible through a longtime street community. The proximity to Thor Mining’s (ASX: THR) Ragged Vary venture, which has reported quite a lot of targets potential for lithium inside its tenement space, is encouraging. The venture is more likely to even be potential for base metals together with copper, lead, zinc, silver and gold, given the quite a few base metals prospects that happen alongside the north and south margins of its tenement.
Central Queensland Gold Initiatives
QXR is creating two Central Queensland gold tasks (the Belyando and Fortunate Break Mines) via an earn-in settlement with Zamia Assets. QXR at the moment owns 70 p.c of Zamia Assets and has the flexibility to earn as much as 90-percent curiosity by spending an additional $1 million on exploration and venture growth works. Each gold tasks are strategically positioned inside the Drummond Basin, a area that has a greater than 6.5-Moz gold endowment.
Map of Places of Zamia’s Exploration Tenements in Australia
Along with the 2 gold tasks, Zamia owns an advanced-stage pure Molybdenum (Mo) deposit in Central Queensland, the Anthony Molybdenum Venture. The venture is adjoining to main sealed roads and close to rail and power help. The Anthony Venture has a JORC-2012 compliant indicated and inferred mineral useful resource estimate of 24,700 tonnes (53.7 million kilos) of contained molybdenum in sulphide, transition (partial oxide), and oxide zones from floor.
Bayrock Assets
QXR holds 39 p.c of Bayrock Assets, an unlisted public Australian firm, which has a portfolio of battery minerals exploration and growth belongings in Sweden, primarily in nickel, cobalt and copper. The 2 primary tasks embody the Lainejaur Venture and the Vuostok Venture inside the Northern Nickel Line. Bayrock is absolutely funded to hold out its deliberate exploration actions on the Lainejaur Ni-Cu-Co venture and the Vuostok venture.
The Lainejaur venture is an advanced-stage nickel-dominated battery metals asset, the place latest drilling (July 2023) has returned 4.7 metres at 2 p.c nickel, 1.6 p.c copper and 0.1 p.c cobalt from 283 metres downhole. The venture has an present JORC 2012 inferred mineral useful resource estimate of 460,000 tonnes @ 2.2 p.c nickel, 0.15 p.c cobalt, 0.70 p.c copper, 0.68 g/t palladium, 0.20 g/t platinum and 0.6 5g/t gold.
The Northern Nickel Line covers almost 340 sq. kilometres comprising 5 exploration permits over areas beneficial for nickel-copper-cobalt in Northern Sweden. The first focus inside the Northern Nickel Line is the Vuostok Venture, the place a diamond drill program has returned encouraging outcomes, thus far. Excessive-grade nickel-copper has been intersected together with 6.9 metres at 1.2 p.c nickel, 2.2 p.c copper from 5 metres downhole, and in one other drillhole with 6.2 metres at 1.2 p.c nickel, from 11 metres downhole.
Administration Group
Maurice Feilich – Government Chairman
Maurice Feilich has been concerned in funding markets for almost 30 years, commencing his profession as an institutional by-product dealer at McIntosh Securities in 1998. He joined Tricom Equities in 2000 as head of equities, and in 2010, turned a founding companion of Sanlam Non-public Wealth. Feilich has a monitor file of success and strong networks within the small assets sector.
Steve Promnitz – Managing Director
Steve Promnitz has vital expertise within the assets sector, having labored within the gold sector with main and mid-tier producers in addition to throughout the battery minerals of copper, nickel and uncommon earths. Beforehand, he was CEO of small/mid-tier firms and has held senior administration roles with world useful resource firms (Rio Tinto, WMC) and senior company finance roles with main banks (Westpac, Citigroup). Promnitz efficiently remodeled Lake Assets, a lithium brine developer, from a $1-million market worth personal firm to an ASX-listed firm with an AU$2.1-billion market capitalization on the time of his departure. He holds a BSc (Hons) from Monash College.
Ben Jarvis – Non-executive Director
Ben Jarvis has intensive expertise within the small assets sector as each a public firm director and strategic advisor. Since 2011, he has been a non-executive director of South American-focused gold and silver mining firm, Austral Gold (ASX:AGD) which is dual-listed on the Australian Securities Trade and the Toronto Enterprise Trade (TSX-V: AGLD). Jarvis is the managing director and co-founder of Six Levels Investor Relations, an Australian advisory agency he shaped in 2006 that gives investor relations companies to a broad vary of firms listed on the Australian Securities Trade.
Roger Jackson – Non-executive Director
A certified geologist with a profession spanning greater than 25 years, Roger Jackson has appreciable expertise in mineral exploration, mine administration, mining companies and the advertising of mineral concentrates. Jackson is the founding director of quite a lot of firms together with Central Gold Mines, Bracken Assets, and Hellyer Gold Mines. He’s a long-standing member of the Australian Institute of Firm Administrators, member of the Australian Institute of Geoscientists, fellow of the Geological Society of London and a fellow of the Australasian Institute of Mining and Metallurgists.
Dan Smith – Non-executive Director & Firm Secretary
Dan Smith holds a Bachelor of Arts and is a fellow of the Governance Institute of Australia. He has 14 years of major and secondary capital markets experience and has suggested on and been concerned in quite a lot of IPOs, RTOs and capital raisings on the ASX and NSX. Smith serves as non-executive director and firm secretary of quite a lot of firms on ASX and AIM.
This text was written in collaboration with Couloir Capital Ltd.
