Discussions with regulators and local administrators have reinforced the strong potential of QXR’s Liberty Lithium project, which boasts similar characteristics to Albermarle’s producing Silver Peak lithium brine deposit nearby and to other Argentina brine projects.
QX Resources (ASX:QXR) is forging ahead with final discussions and due diligence at the Liberty Lithium brine project in Western USA.
Detailed due diligence, together with legal advice, have reaffirmed the local county and regulatory interest in developing projects such as Liberty Lithium towards production due to the support for battery minerals production in this part of California, just across the border from Albemarle’s long term operation and near a long lived evaporation salt works.
The project is now one of the largest single lithium brine projects in the area, thanks to a recent consolidation of the lease holding and a 67% increase over the previous area to 25,280 acres.
Adding to the project’s attractive opportunity, large volume resampling of lithium brines near surface has returned almost 200mg/L lithium, with values from 186 to 195mg/L lithium, supporting previous anomalous results. Future downhole drill results could be better
Prior brine samples returned 125mg/L up to 215mg/L lithium in near surface auger holes in the same area and elevated lithium results extend over a 10km distance.
Large-scale with reputable results
QXR says these results reinforce the strong potential of the project.
Similar nearby brine projects, such as Pure Energy Minerals just across the Californian/Nevada border, are advancing to potential economic development on lower grades downhole of 110-160mg/L lithium.
“Ongoing studies, detailed due diligence and a site visit show QXR that the Liberty lithium project is truly large scale with repeatable results and a pathway to development,” QXR managing director Stephen Promnitz says.
“It’s a sought-after project with many characteristics similar to Albemarle’s producing Silver Peak lithium brine deposit in Clayton Valley USA, just across the state border from this project. We looked carefully at permitting and there’s a salt operation nearby that’s been running for over 150 years.”
“I have looked at a number of projects and this one stands out. It is encouraging to note growing interest from end-users investing directly into projects making the large scale of Liberty Lithium an attractive opportunity, especially given the good infrastructure in the area.”
What’s next?
QXR entered a non-binding letter of intent (LOI) for exclusivity to negotiate terms to acquire a controlling interest of 75% in the Liberty Lithium Brine Project in May.
Final terms of an option to purchase agreement are anticipated during mid-August.
Separately, QXR has agreed to purchase a small package of leases to consolidate the area, requiring a payment of cash and shares to the third-party lease holder.
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.