QX Resources reported steady progress on its Queensland gold and US lithium brine projects while managing modest cash reserves and exploration expenditure in the March 2025 quarter.
- Plans for further trenching and potential drilling at Big Red gold project in Queensland
- Renegotiated lithium brine option agreements in the USA reducing upfront payments and expanding project portfolio
- Pilbara iron ore sampling program delayed due to personnel availability
- No ground exploration conducted during the quarter at key projects due to permitting and planning stages
- Company ended quarter with $608k cash and $89k liquid investments, spending $13k on exploration
Gold Exploration in Queensland
QX Resources Limited continues to advance its gold exploration efforts within the Drummond Basin of Central Queensland, an area with a rich 8.5-million-ounce gold endowment. The company holds approximately 100,000 hectares of tenements, including 85,800 hectares fully owned and 11,500 hectares in joint venture with Zamia Resources. The highlight remains the Big Red project, where historic trenching revealed high-grade gold zones with assays up to 23 g/t Au over 2 meters.
While no ground exploration occurred during the quarter, QX Resources is actively working with local tenement managers to secure heritage clearances necessary for further trenching. The company is also evaluating the possibility of bypassing additional trenching to proceed directly to drilling, reflecting confidence in the clearly defined high-grade targets. This approach could accelerate the path to resource definition, positioning Big Red as a potential analogue to nearby deposits such as Twin Hills and Lone Sister.
US Lithium Brine Projects Restructured
In the lithium sector, QX Resources has restructured its option agreements over the Liberty Lithium Brine Project in California, reducing option payments from US$1.7 million to US$500,000. Additionally, the company secured an option to acquire a 15% interest in two further lithium brine projects in Utah and Nevada, expanding its US lithium footprint to over 10,600 hectares.
The Liberty project is notable for its large basin exceeding 1,000 meters in depth and geological similarities to the producing Silver Peak deposit. QX Resources is progressing permitting for new drill sites targeting previously identified brine horizons, supported by a strong local exploration team. These developments suggest a strategic pivot to lithium brine assets with significant scale and potential in the US market.
Pilbara Iron Ore and Hard Rock Lithium
In Western Australia, QX Resources' Pilbara iron ore project at Western Shaw has demonstrated promising rockchip samples with iron grades up to 58.5% Fe over a 4km strike of Banded Iron Formation. However, planned sampling programs were delayed due to a shortage of suitably skilled personnel. The project benefits from proximity to major rail infrastructure, enhancing its potential for future development.
The company also holds four 100% owned hard rock lithium projects in the Pilbara region, with previous rockchip samples returning up to 3.8% LiO2. While no on-ground work was conducted this quarter, detailed trenching and sampling are planned to delineate mineralised zones further, supported by recent airborne geophysical data.
Financial Position and Corporate Activity
QX Resources ended the March 2025 quarter with a cash balance of approximately $608,000 and liquid investments of $89,000. Exploration expenditure was modest at $13,000, reflecting the limited ground activity during the period. Payments to related parties, including directors and consultants, totaled $126,000.
The company’s cash position underscores the need for careful capital management as it advances multiple projects at various stages of exploration and permitting. The presence of an At-The-Market equity facility with Dolphin Corporate Investments provides a potential avenue for raising additional funds, though no drawdowns were reported this quarter.
Outlook
QX Resources is poised to accelerate exploration activities pending heritage clearances and permitting approvals, particularly at the Big Red gold project and the Liberty lithium brine project. The strategic expansion of its US lithium portfolio and ongoing evaluation of Pilbara iron ore and lithium assets position the company to capitalize on multiple commodity markets. However, the modest cash reserves and limited recent ground activity suggest that funding and operational execution will be critical factors in the near term.
Bottom Line?
QX Resources’ next moves on drilling approvals and lithium project development will be pivotal amid tight cash constraints.
Questions in the middle?
- When will heritage clearances be secured to enable drilling at Big Red?
- How will QX Resources fund upcoming exploration programs given current cash levels?
- What are the timelines and expected milestones for lithium brine project drilling in the USA?