Categories: Energy
Topics: Lithium Stocks

Q2 Metals (TSX-V: QTWO)(OTC: QUEXF) VP Exploration Neil McCallum on More High-Grade Lithium Assays Ahead of Winter Drilling at Flagship Cisco Lithium Project, James Bay, Quebec

 

This is Gerardo Del Real with Resource Stock Digest. Joining me today is the VP of Exploration for Q2 Metals Corp. — Mr. Neil McCallum. Neil, it's great to have you on. Congrats again, sir. 

You just drilled 188.6 meters grading 1.56% lithium. That includes 26 meters of 2.03% lithium at the Cisco lithium property, of course, in James Bay, Quebec. You have to be pleased with what you're seeing. Tell me about the results, specifically drill hole 23.

Neil McCallum: Yes, 23 is a great hole. It's not quite as good as 18 or 21 with over 200 or 300 meters but it still is right on track with our strike direction at the very south end. So it really left us on a high note, and we're just thrilled with those results. We just can't be happier. 

Hole 22, not far away, a little bit more to the east of things, hitting three pretty significant intervals as well with good grade. So we are just continuing that story and putting the final touches on what we did this summer in terms of the analytical. And then, we are very excited about what's going to happen this winter with our new program.

Gerardo Del Real: Let's talk about the approach for the new program. You're proving just amazing scale, amazing continuity, amazing infrastructure. And clearly, the grade is there, which bodes well for the future. But as far as 2025 goes, what's the approach there?

Neil McCallum: For sure, and that's a good question. We're going to be totally financed for our, roughly, 6,000 to 8,000 meter program that's going to be running January through to March. We'll have two drill rigs up there for sure.

And then, depending on how the warrant money comes in from what's expiring, I believe in February, there could be an increase to that program near the end. But the overall goal is to extend what we've already found. 

I think that might be a bit of a confusing statement to some people because why would you need to expand on what we've already found? It looks great. But I think it's important to reiterate that we've only really tested less than a quarter of what we’ve found at surface. We've been very successful drill-testing beneath all of these spodumene occurrences that come right to surface. 

That strike length is 850 meters. But with those surface results, we see the potential of that being almost two kilometers. So we have to give ourselves an understanding of what the total project is before we focus on drilling out a deposit and putting that tonnage out to the world.

We want to understand what we have first, and that's going to be this winter. We've got a good plan laid out to expand in all directions.

Gerardo Del Real: Excellent. When can we anticipate… and it's always, ‘What else you got… Excellent results today…’ but when can we anticipate the next bit of news, and when do you anticipate getting back out there and letting that drill rig prove the continuity and the scale of this thing?

Neil McCallum: Yes, for the next steps, we have one more hole to report on. That'll be as soon as we get the results from the lab. And with that result, we'll do a bit of a wrap up on the program, kind of putting things into a little bit more context with all of the analytical information in hand. 

Then, we'll be out there around the end of January starting with the drills turning, and then we can put out a news release on the visual pegmatite intervals likely mid-February. So that's coming up… and we can't wait to start getting news out again and keeping people informed with the story.

Gerardo Del Real: Never a dull moment… and congrats on a heck of a 2024! I know a lot of the warrant money from — well, I just exercised warrants from I think the C$0.32 warrants that I had, and I have C$0.60 ones that I'm in the process of getting exercised as well — I know that'll help the treasury out. 

I cannot wait for the drills to start turning, and I think 2025 is going to be a banner year. What are your thoughts, before I let you go, Neil, on the lithium space? The spodumene price seems to have bottomed and turned back up.

I can't help but notice as we get closer to tax-loss selling season being over and behind us that a lot of the better names that have been beaten up are starting to turn around slowly but surely. Your thoughts on the sector?

Neil McCallum: I think you've described that quite accurately. Everybody is seeing the same fundamentals that haven't gone away in terms of supply and demand. The picture looks positive for lithium and positive for the battery manufacturers… and we still need to catch up on supply.

And that's where the exploration companies and development companies come into play. So our job is to catch up as much as we can to be a part of that picture.

Gerardo Del Real: We had the recent ban of exports of antimony, among other metals, from China. Do you believe that North American companies — whether it's chemical companies, lithium companies, producers, automakers — do you think they're finally starting to get the picture about why there should be an urgency to establish an independent critical metals supply chain in North America, including lithium? 

Because there's nothing that says China won't wake up tomorrow and decide that it wants to go ahead and ban the exports of lithium as well, right?

Neil McCallum: Yes, or put limitations on it or what have you. I think it's an incredibly good idea for companies to diversify supply. And if you don't want to go to Africa — which I understand why a lot of people wouldn't — you've got South America but there's not a lot there. 

Quebec is the place to be. So I think that there should be a lot of attention focused on Canada and specifically Quebec. Of course, I'm biased but that's how I view it.

Gerardo Del Real: Well, I'm biased as well. I'm biased with my checkbook. I'm biased with my capital. And so I hope that 2025 sees an acceleration with share prices recovering along with a renewed build-out of infrastructure and of deals here with automakers and chemical companies and the likes. I can't think of a better place right now to really set that off than Quebec.  

Neil, always a pleasure. Thank you so much for coming on. We're going to chat soon. I know you have assays pending on one hole. And I can't wait for 2025. Thank you.

Neil McCallum: Absolutely. Take care.

Gerardo Del Real: Alright, cheers now.

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