Lithium explorer Quantum Resources made a quantum leap yesterday — doubling its share price after forming a strategic partnership with Canada’s Far Resources to fast-track the duo’s lithium projects.

Under the deal, Quantum (ASX:QUR) and Far Resources will assess the synergies between their respective Thompson Bros and Zoro projects which are next door to each other in the central Canadian province of Manitoba.

Quantum’s share price more than doubled to a year-high of 2.9c before cooling slightly to 2.8c.

Quantum's share price doubled this week. Source:
Quantum’s share price doubled this week. Source:

The deal was “a pivotal event for the two companies and in particular, may serve to unlock the Manitoba region as a potentially major hard rock lithium-producer,” Quantum’s managing director Avi Kimelman said.

“Clear synergies between the two projects will likely benefit through economies of scale.”

Quantum and Far Resources have also agreed to share data and information on the Thompson Bros and Zoro projects.

The synergies between the two projects could include partnering on exploration programs as well as sharing drill rigs and contractors to reduce the cost, Mr Kimelman told Stockhead.

“There will be discussions into potentially a joint venture,” he said. “Obviously we are going to have some serious discussions about what they’ve got, what we’ve got, the valuation of what we have and what they have and see if there’s a way to join forces to benefit both parties.”

Quantum’s focus is on proving up a much larger resource than the historical estimate of 4.3 million tonnes of 1.3 per cent lithium oxide.

The company has completed geochemical soil sampling to identify drill targets and extensions to the mineralisation.

“We believe if it actually extends to the east then we’re talking about a potential resource that is equivalent to any of the larger ones out there,” Mr Kimelman said.

“We are not so fussed about proving up a resource on the 4.3 million tonnes, we think we can get that relatively quickly. We are aiming for a much larger scale. We’re aiming here for a company-making project.”