QX Resources (ASX:QXR) has made significant progress in its pursuit of the Liberty Lithium Brine Project located in California, USA. The project has been the subject of discussions and extensive due diligence, leading to encouraging results that reinforce its potential as a significant lithium resource.
Recent resampling of lithium brines from auger holes has returned almost 200 mg/L Lithium, with values ranging from 186 to 195 mg/L, supporting previous anomalous results. These elevated lithium results extend over an impressive distance of 10 kilometres, demonstrating the robust potential of the Liberty Lithium Project. Similar nearby brine projects have also shown progress toward potential economic development, even on lower-grade resources downhole.
An essential development in the project is the confirmation of an expanded lease holding position covering an area of over 10,230 hectares (25,280 acres), marking a 67% increase over the previous area. This expansion has made the Liberty Lithium Brine Project one of the largest single lithium brine projects in the western USA.
QX Resources Limited entered a non-binding Letter of Intent (LOI) in May 2023 for exclusivity to negotiate terms to acquire a controlling interest of 75% in the Liberty Lithium Brine Project. The LOI granted a 75-day exclusivity period for conducting due diligence and negotiating the terms and structuring of an option to purchase agreement. As the final terms are expected to be finalized during mid-August, the exclusivity period has been extended until 15 August 2023. QX Resources has also agreed to purchase a small package of leases to consolidate the area, involving a payment of cash and shares to the third-party lease holder.
In discussions with regulators and local administrators, there has been a reaffirmation of the local interest in developing projects similar to Liberty Lithium, especially in light of the increasing support for battery minerals production in California. The region has shown substantial interest from end-users who are investing directly into projects like Liberty Lithium, making it an attractive opportunity.
The Liberty Lithium Project, with characteristics akin to Albemarle's producing Silver Peak lithium brine deposit in Clayton Valley, USA, and other brine projects in Argentina, has proven itself as a sought-after venture with a promising pathway to development.
Stephen Promnitz, the Managing Director of QX Resources, expressed his confidence in the project, stating, "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. It's a sought-after project with many characteristics similar to Albemarle's producing Silver Peak lithium brine deposit in Clayton Valley USA and other Argentina brine projects. It is encouraging to note growing interest from end-users investing directly into projects making Liberty Lithium an attractive opportunity. Liberty Lithium is well located near a long life salt operation nearby. We are in final discussions now."
QX Resources Limited's focus on exploration and development of battery minerals, with its lithium and gold assets, positions it well as an experienced explorer and developer of battery minerals. Their commitment to diligent exploration and solid financial support indicates their intent to contribute significantly to the battery minerals industry.
