QX Resources signs LOI with Stardust Power for potential offtake of lithium brine products from the Liberty Lithium Brine Project in the USA
Negotiation will cover assessment of lithium brines from the project prior to deciding on supply
Assays pending for two drill holes which intersected multiple brine aquifers
Special Report: QX Resources has received early interest in the lithium products that it could produce from its large-scale Liberty Lithium brine project in California from Stardust Power.
The 102km2 project – about twice the size of the Sydney Harbour – hosts an extensive lithium brine surface anomaly with elevated results up to 215mg/Li extending over 10km.
It also appears to be within a geological setting which mirrored Albemarle’s nearby producing Silver Peak lithium brine deposit in Nevada’s Clayton Valley, as well as other major brine projects in Argentina.
Drilling by QX Resources (ASX:QXR) has already reinforced this geological similarity with its recent two-hole program having intersected multiple brine reservoirs.
The second hole intersected five brine aquifers at 90m, 130m, 210m, 245m and 295m with widths varying from just a few metres to 10m.
Running sands favourable for brine aquifers were intersected at these same levels.
Liberty Lithium Brine project. Pic via QXR
Potential lithium offtake
This potential to produce lithium brine products has drawn the attention of development-stage, battery-grade lithium products manufacturer Stardust Power, which has signed a letter of intent (LOI) with QXR.
Both companies will negotiate a formal agreement to assess the lithium brines from the Liberty project and – depending on results – evaluate options to potentially supply Stardust with lithium brine products on a non-exclusive basis for processing into battery-grade lithium materials for use in electric vehicles.
Stardust Power is developing a strategically and centrally located lithium refinery in Muskogee, Oklahoma, capable of producing up to 50,000tpa of battery grade lithium.
This is likely to have no shortage of potential customers given there are over 25 battery giga-factories currently under development across the US, all of which will need substantial quantities of lithium.
“QXR has been in discussions with Direct Lithium Extraction technology providers, lithium product processors and end users to advance the liberty Lithium Project dependant on results,” managing director Stephen Promnitz said.
“Stardust is an emerging new processor of lithium for batteries and we are keen to advance discussions with them.”
Location map of Liberty Lithium area (SaltFire Flat project). Pic via QXR
Next steps
QXR is currently awaiting results and interpretations in the coming weeks from the two holes it drilled.
This article was developed in collaboration with QX Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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