QX Resources Limited (ASX: QXR) has entered into a binding option agreement with Redstone Metals Pty Ltd which gives the Company 30-days to undertake due diligence on the Turner River lithium project (ELA 45/6042) located in the Pilbara lithium province of Western Australia.
Chairman, Maurice Feilich, said Turner River represents an excellent opportunity for QX to secure a highly prospective lithium asset right within Australia’s premier address for such projects and nearby to two large, established lithium operations.
It potentially gives us exposure to minerals that are instrumental to the growth and development of the EV and clean energy sectors and in a tier 1 mining jurisdiction of Western Australia,” Mr Feilich said.
“Equally appealing is the presence of tin and tantalum across the leases which gives QX exposure to another commodity where there has been considerable price appreciation.
“We are excited about the acquisition opportunity and are keen to get on the ground to assess the prospect fully and execute the option agreement thereafter. “QX is continuing to very cost effectively and strategically expand its portfolio of exploration and project development assets in Queensland in Western Australia.
“The majority of our expenditure is currently centred on the gold projects in Queensland and we are not distracted from our goal of defining a mineral resource estimate here first and foremost.”
The Turner River lithium projects is located ~120km south of Port Headland, with access provided along the Great Northern Highway. The tenement starts about 12km south of the access turn-off for the Wodgina mine site.
Previous exploration work at the Turner River lithium project has included geological mapping and geochemical sampling, however historical work has been limited and sporadic in nature. In the northeast of the tenement is the historic Turner River tin prospect; while in the south there is the Mt Francisco alum prospect.
Exploration Plans
During the option period, the company intends to carry out further desktop review of all publicly available data for the Turner River project, ahead of a planned three-day site visit by the company’s technical team. Field work will consist of geological mapping and the identification of potential prospective outcropping units.
QX Resources and Redstone have executed a binding option agreement, which upon payment of a $10,000 option fee (which has been paid), provides the company with 30-days exclusivity to undertake due diligence on the Turner River lithium project.
In the event that QX Resources chooses to exercise the option over the project, it will issue to Redstone (or its nominee) with 12 million fully paid shares in the company in consideration for 100% of the project. As the exploration licence is still in the application stage, the transfer of ownership is subject to granting and ministerial consent.