This article is a sponsored feature from Mining.com.au partner Q2 Metals. It is not financial advice. Talk to a registered financial expert before making investment decisions.
Junior Canadian explorer Q2 Metals (TSX-V:QTWO) unveiled its maiden inferred mineral resource estimate in late April, which catapulted the Cisco Lithium Project into the number one position as the largest hard-rock lithium deposit in the Western Hemisphere and fourth largest globally.
The announcement surpassed more conservative estimates, which were made in an exploration target that was issued by Q2 in July 2025, and which were reiterated in an interview with Mining.com.au in mid-April. At the time, the Cisco Project, based on the exploration target, was estimated to have lithium mineralisation ranging from 215 million tonnes (Mt) to a maximum of 329Mt at a grade ranging from 1% to 1.38% lithium oxide (Li2O). That estimation ranked the Cisco Project among the top 10 largest lithium projects in the world.
In his latest conversation with Mining.com.au, Chris Ackerman, who leads Q2’s corporate development, says the reaction to the maiden inferred resource estimate of 295Mt at 1.36% Li2O has been “overwhelmingly positive”.
“We are extremely happy with the size of the maiden inferred mineral resource and believe there still may be plenty of upside to the Cisco Project. To now be officially on the record with that inferred resource is really a major step.
“It’s now officially a deposit in the inferred category and we will continue to conduct infill drilling in and around the main resource area.
“Our plan for 2026 is to tighten up the drill spacing within the deposit area to approximately 60–70m spacing, as we look to upgrade the resource from the inferred mineral resource category to the indicated mineral resource category. Drilling conducted between January and April this year was all infill drilling, and we will be continuing infill drilling over the next few months and beyond.”
Global reaction
“There was some surprise that the inferred mineral resource estimate was close to 300Mt. In comparison to other lithium deposits, it’s much bigger than others in North America. And to rank as fourth overall globally was amazing.
“Once we released the inferred mineral resource estimate, the immediate question from investors was: ‘What’s next?’ And before the dust had really settled on the inferred mineral resource estimate announcement, we launched a C$60 million [$61.25 million] bought-deal financing, with a C$10 million over-allotment. Having now completed that, it will enable us to accelerate Cisco’s advancement even more.”
Financing flurry
On 29 April, Q2 announced a private placement to raise C$60 million for continued exploration and development of the Cisco Project. In late May, the financing was completed for a total of C$70 million ($71.18 million), which included the C$10 million overallocation.
Under the financing, 20,409,000 shares were issued at C$2.45 per share to raise just over C$50 million. A further 5.56 million flow-through shares were also issued at C$3.60 to raise an additional C$20 million.
“Marketing that we had done prior to and following the release of the inferred mineral resource estimate was extremely busy. We were doing six to 10 calls a day. On the announcement of the financing, there was considerable interest from Australia, which was not unexpected,” the Vancouver-based explorer says.
“Since the initial discovery of the Cisco Lithium Deposit, the reaction from Australia has been very positive and has resulted in a very solid and supportive Australian investor base.
“With the completion of this financing, we now have more than a two-year runway for the continued acceleration of work on the Cisco Project through the next stages and we’re excited to move forward with a preliminary economic assessment (PEA) immediately.”
Calculated costs
Q2 announced the launch of its summer exploration program and development plans on 27 May, including the most ambitious drill campaign in company history.
Ackerman says drilling is “always the primary cost” at this stage of the project.
“There are four drill rigs on site right now with drilling set to recommence mid-June, targeting approximately 20,000m for the June–September (summer) program. We plan to ramp that up to as many as six drill rigs over the next few months, with our primary focus on moving those inferred resources to indicated resources, plus expansion and exploration drilling around the Cisco Deposit area.”
To enhance efficiencies, Q2 has submitted permit applications for an access road that would lead directly from the main Billy Diamond Highway to the Cisco Project, as well as for a mining camp along that road. This will allow crews to drive directly to the Cisco Deposit and reduce reliance on helicopter support.
The company also announced advanced metallurgical test work and environmental baseline studies have commenced at the project.
“The financing that we completed at the end of May will really enable a multifaceted program which will allow us to advance Cisco at an accelerated pace. We feel like the timing on accelerating our activities is good and are looking forward to a busy exploration and drilling season.”
Lithium market uptick
At this point in time, Q2’s good fortune appears to be relentless.
“We have a really solid tailwind in the lithium market and sentiment seems to be picking up nicely. There’s a lot of appetite for a project of this scale and quality. Given our location, where it’s so close to transportation infrastructure, the Cisco Project is a strategic asset not only for Québec but for Canada and potentially North America,” Ackerman says.
“There are other critical mineral projects like Cisco in Québec and the governments of both Québec and Canada appear to be focusing on the supply chain issues, similar to other countries. We will continue to follow up on opportunities that are focused on growing our relationships in the Eeyou Istchee James Bay region.
“Importantly, we want to be as aggressive as we can while maintaining the methodical, systematic approach to our exploration and drilling that we’ve adopted.”
One to watch
Q2 investor relations manager Jason McBride has previously told Mining.com.au that the Cisco Project was transforming from an “exciting discovery story” to an “development and engineering story”.
“With the advancement of the Cisco Project through ongoing drilling, baseline, metallurgical, and engineering work, we will have started working on our PEA and will be updating the inferred mineral resource estimate,” McBride says of the company’s recent announcement.
Ackerman says the team now needs to continue to move forward on the Cisco Project as it transforms from an exploration project to that of a development project.
“We’ll get more into the metallurgy of the Cisco Deposit, the actual mining of the deposit, and pricing assumptions so you can assess the Cisco Project’s economics. And then move into a more advanced engineering stage,” he says.
“The Q2 Metals team is growing by virtue of having a large exploration program and will continue to expand as the company looks to bring in resource and development expertise.”
Boots on site
Q2 recently hosted a site tour for investors and analysts of the Cisco Project this May.
“It’s a really good opportunity to see the CO1 outcrop, the deposit area, and our camp — to understand and experience how easy the Cisco Project is to get to,” he says.
“We like to host visits to Cisco as you can really get a sense of the advantages that Cisco has — advantages that you can really only see in person. Being able to drive to camp from the airstrip in Matagami, being able to see drill cores and run through the model with the geologists, and then to walk on CO1 outcrop, the main discovery area, allows our guests to truly understand the benefits and advantages that the Cisco Project brings.”
Current global events such as the Middle East war have highlighted the “fragility of supply lines” and the need to secure domestic markets, such as Q2’s Cisco Lithium Project in the safe jurisdiction of Québec, Canada.
Q2 Metals is poised to deliver on that supply with the Cisco Lithium Project, only 150km from the closest railhead.
The Cisco Lithium Project comprises 801 contiguous mineral claims over 41,253 hectares within the greater Nemaska Community lands of the Eeyou Istchee James Bay region. The maiden inferred resource estimate of 295Mt at 1.36% Li2O ranks Cisco as the fourth-largest hard-rock lithium deposit globally.
Write to Christine Retschlag at Mining.com.au
Images: Q2 Metals
