It’s a real catch with QXR’s second hole confirming the Liberty project has similar geology to a nearby lithium brine producer. Pic via Getty Images
Mining
Special Report: QX Resources’ Liberty project can now add geological similarity to a nearby lithium brine producer as another point in its favour after the company’s second diamond hole intersected multiple brine reservoirs.
When QX Resources (ASX:QXR) first entered into the agreement to earn 75% of the Liberty project in October last year, the company already knew it was getting its mitts on what is believed to be one of the single largest lithium brine projects in the US.
The 102km2 project – about twice the size of the Sydney Harbour – hosts an extensive lithium brine surface anomaly with elevated results up to 215mg/Li extending over 10km.
Adding further interest, the project also appeared to be within a geological setting which mirrored Albemarle’s nearby producing Silver Peak lithium brine deposit in Nevada’s Clayton Valley, as well as other major brine projects in Argentina.
This is a potential indicator the Liberty project could also produce lithium brines economically, a major plus in the US where interest in locating and securing domestic lithium projects remains high, despite the current downturn in prices.
Diamond drilling at Liberty has now reinforced its geological similarity to Albemarle’s nearby Silver Peaks operation after the second of two diamond holes intersected multiple brine reservoirs.
The hole, which was drilled to a depth of 443.5m, intersected five brine aquifers at 90m, 130m, 210m, 245m and 295m that have widths varying from just a few metres to 10m.
Additionally, running sands that are favourable for brine aquifers were intersected at these same levels, while increased salinity suggests a favourable zone from 210-270m.
Brine sampling and downhole geophysics of the second hole are currently under way.
Specific aquifers are being sampled using packer sampling, with intervals determined from downhole geophysical and geological logs.
The two diamond holes are 4km apart and centred over significant geophysical targets in magnetotellurics inferring a series of conductive brine-bearing aquifers.
“Intersecting numerous brine aquifers in the second hole is very encouraging,” QXR managing director Stephen Promnitz said.
“The running sand horizons and numerous saline aquifers encountered are exactly the desired geological setting when exploring for new lithium brine basins.
“Additionally, the geology in the second hole is very similar to the producing sequences at the nearby lithium brine producer of Albemarle.”
When asked about the recent lower pricing affecting the lithium market, he responded by saying that this refocuses the market on lower operating costs – which is common amongst lithium brine producers. Also that the US market is still keen to source potential domestic supply of lithium given the geopolitics of the battery supply chain.
QXR will case the second hole with slotted casing in favourable aquifers to allow for further sampling and monitoring.
Large brine samples will be pumped and stored with bulk volumes submitted for analysis and testing with various direct lithium extraction providers.
Results and interpretation of the first drill hole are expected in mid-February while the second hole results are likely to be available in late March.
Tune in below to hear Promnitz explain what it all means to StockheadTV’s Sarah Hughan.
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.
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