Lake 2.0? Promnitz’ QX Resources is about to acquire the single largest lithium brine project in the US

QX Resources has entered a binding ‘option to purchase’ agreement to earn a 75% interest in the Liberty project from IG Lithium
Liberty Lithium is one of the largest single lithium brine projects in the USA
Similar characteristics to Albemarle’s Silver Peak lithium brine deposit across the border in Nevada
A two hole 1,000m diamond drilling program will begin in November-December

QX Resources has inked a deal to acquire 75% in the Liberty lithium brine project in California – one of the largest project areas in the US, analogous to Albemarle’s nearby producing Silver Peak deposit.

QX Resources (ASX:QXR) managing director Steve Promnitz says this project has been hotly pursued by other groups due to its similarity with Silver Peak, currently the US’ only significant lithium producer, and being a lookalike to major brine developments in Argentina.

“The vendors wanted QXR due to its past lithium brine experience,” he says.

That experience comes from Promnitz himself, who grew Lake Resources (ASX:LKE) from the $9.5m minnow into an advanced project developer with a focus on direct lithium extraction (DLE).

After leaving Lake late last year, Promnitz – who has experience at all stages of the project development cycle — joined QXR, saying he was confident “we can transform and scale up QXR into a major player in this sector”.

“The Liberty Lithium Project is potentially a new large-scale lithium brine project – in the right location, with good infrastructure and a pathway to development,” he says.

“End-users, DLE technology providers, project developers and battery makers have intimated interest in participating with us once we demonstrate lithium brines in drillholes.

“The project is located near long life evaporation operations and is well-serviced by roads and power in a region keen to be part of the energy transition.”

Liberty: The next Silver Peak

QXR first entered a non-binding letter of intent (LOI) for exclusivity to negotiate terms to acquire a 75% interest in the Liberty lithium brine project from IG Lithium LLC in May.

Since then, ongoing studies, detailed due diligence and site visits have been carried out to determine the scale of the project and a pathway to development.

An extensive lithium brine surface anomaly with elevated results up to 215mg/Li extends over 10km, reinforcing the strong potential of the project.

Geophysical analysis indicates a large basin over 1,000m deep, indicating brine aquifer targets at depth.

QX Resources ASX QXR — Location map of Liberty Lithium area. Pic via QX Resources

Drilling to begin in November

These latest agreements complement the acquisition agreement announced in September which involved the company acquiring a small package of adjacent claims.

QXR will now conduct drilling, sampling, and test work – starting with two permitted drillholes in the main part of the surface lithium anomaly – scheduled for November-December this year, as per the first stage of agreements.

Large volumes of lithium brines, if encountered, will be submitted for test-work with various direct lithium extraction (DLE) providers and IGL will provide an experienced team to assist in the field work.

The explorer will then make staged option payments to IGL totalling US$2 million over the next 27 months to earn 75% of the project and sole fund activities through to the Definitive Feasibility Study (DFS) stage.

Drilling is planned to assess the project before the bulk of the payments are due.

‘Battery minerals portfolio of true scale’

Promnitz says QXR now has a battery minerals portfolio of true scale in Tier-1 jurisdictions.

“[These include] exciting hard rock lithium targets, a major investment in high grade nickel-copper-cobalt sulphides, and now a large lithium brine project,” he says.

This article was developed in collaboration with QX Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.