QX Resources (ASX: QXR) has expanded its exploration portfolio in Western Australia’s Pilbara region with the acquisition of the ‘highly prospective’ Yule River Lithium Project, 120km south of Port Hedland.
The deal with Redstone Metals, which includes consideration of $60,000 cash plus an issue of 16,000,000 new QXR shares, will expand the company’s total portfolio of granted tenements and applications to more than 355km².
QXR notes that the recent ‘significant’ discovery of lithium-bearing pegmatites at the nearby Spear Hill has provided the company with further confidence on Yule River’s lithium prospectivity.
Commenting on the acquisition, QX Resources Chairman Maurice Feilich said: “The highly prospective Yule River lithium project is a great fit for our portfolio, and adjoins the Western Shaw lithium project to the east. Like much of the Pilbara lithium province, the project area is considerably underexplored and presents as a fantastic target. The fact that the tenement has been intruded by the Split Rock Supersuite granites is highly encouraging.
“Like much of the Pilbara lithium province, the project area is considerably underexplored and presents as a fantastic target”
With an extensive exploration portfolio now locked in the Pilbara region, we will now focus on deploying our funds to exploration activities with another field trip planned for next week where we will undertake rock chip and soil sampling and with these results defining our plans for a more aggressive and extensive exploration program.”
The Yule River project, located around 5km from the QXR’s Western Shaw project, is an exploration stage package that lies wholly within the Yule Granitoid Complex.
Initial due diligence has shown that granite within the tenement has been intruded by the Split Rock Supersuite with which the Wodgina, Pilgangoora, and Global Lithium deposits are associated.
Geologically, Yule River is in a region dominated by ‘nested’ granite plutons, many of which are known to host lithium-bearing pegmatite dykes and associated tin, tantalum, and lithium mineralisation.
Location of QX Resources’ Pilbara holdings with nearby major lithium projectsThis area is considered to be a ‘lithium hotspot’ with neighbouring significant landholders in the including Albemarle, Pilbara Minerals, Fortescue, and Essential Metals.
Moving forward, the project is set to be incorporated into an initial reconnaissance mapping and soil/rock chip sampling program commencing next week.
Images: QX Resources Limited
