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Lithium Stocks
Q2 Metals (TSX-V: QTWO)(OTC: QUEXF) VPE Neil McCallum on Final Analytical Results for 2024 and Getting Ready for Busy 2025
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the VP of Exploration for Q2 Metals, Mr. Neil McCallum. Neil, we talked a bit off-air big day for Canadian lithium, James Bay. I told you off-air I feel like congratulations are in order to you as well because of the $69 million investment off-take and strategic partnership that Volkswagen just inked with Patriot Battery Metals, of course, a deposit that you are very, very, very familiar with. So congrats on that. It's got to be really gratifying from your perspective to think that just under three years ago you started putting a drill hole or two in there, and here we are right around the three-year market and there is an off-take and a strategic partnership with the largest European car manufacturer in the world, right?
Neil McCallum: Yeah, for sure. It's really cool to see something from one discovery hole all the way up to the point where they're at now close to feasibility study. So that's very rare. Usually projects have been drilled decades before and reinterpreted and everything, but this is a really neat grassroots discovery story that has moved very quickly.
Gerardo Del Real: Yeah, no. Heck of an endorsement for the region, heck of an endorsement for the project. And that gets me to Q2 Metals. Look, you all have what I think is shaping up to be a world-class deposit of your own with phenomenal infrastructure in a region that Volkswagen definitely believes is going to become a North American hub for many, many lithium-related industries. So you just announced your final analytical results from the 2024 drill campaign at Cisco. You also announced that you've brought in proceeds of an additional $1.9 million from warrant exercises. And I should mention that that is from, I believe it was the 30 and a half cent warrants, not the ones that expire in February, correct?
Neil McCallum: Those are the December, I think it was 15 or 16 expiry and then there's more coming due in February and those are at a higher level, but our share price is well above it. So I foresee additional funds coming in this winter. So we are right now, well-financed at this point with roughly 6.9 in the bank, 6.9 million, to do our winter program. We're more than funded for that runway and whatever work we're going to do in the summer.
Gerardo Del Real: Well, let's get right into Hole 20 and 21, right. You just announced core assays and it's the final analytical assays. And so I want to get into the results there, what the program achieved this year. And then again, we talked a bit off-air. We are both, I'm a biased shareholder, right? We are both very, very excited for 2025. I think it's going to be a transformational one for Q2, but let's talk about these results and let's talk about how in the context of the entire drill program this past year, it closes the season out for you.
Neil McCallum: Oh yeah, for sure. I think 20 was not a very surprising hole. It was in between Hole 23, which was the previous announcement, which had 186.6 meters at 1.56 lithium oxide and then Hole 19, which had several wide intervals. So it really wasn't all that surprising, but it's really nice to just have all that data in and we've been interpreting the data as we've been drilling. So one thing to note on the long section that we produced on the latest news release is a little bit of a different way of looking at it in 3D, all the drilling that's been done to date, the major takeaway is that we've got a lot of runway to go in that main strike direction. We've defined 850 meters, yet we've got 1,050 meters of open ground where on the surface there are several different outcrops in that direction, but has not yet been drilled tested.
So that's a big part of our campaign this winter is to keep going and just see what's there. The surface indications, we know that something's there, but we never really truly know what's there because these mineralized pegmatites can start 50 meters below the surface and can go quite substantially. Some continuous intervals are 200 to 300 meters, so it just gives us a little bit of a sniff at surface. But the drill hole really tell the story.
Gerardo Del Real: It's got to be, I don't want to say easy, but easier at least to have the outcrop right along the hole, 1,050 meter straight that you have left open, right? Because you can just, as long as you got the direction right, I imagine it's a whole lot easier than drilling into a blind target.
Neil McCallum: Well, yeah, exactly. It's somewhat blind in the fact that there's unfortunately no good geophysics method for pegmatite. So it is based on really classic geological observations that surface and then you just drill. You can use whatever data you can collect that we've done, including the down hole optical information, which gets us some information on the contact direction that confirms that we're drilling perpendicular to the strike of this thing. And again, we're not drilling down dip because we can tell that with the data we've collected, drilling dip shows us very close to perpendicular again to the dip of this thing. So we're just going to continue that direction toward the south and see how far this goes.
But then the other part of that story is that we have all that about double the runway towards the east of all those surface showings, and there could be a whole repeating pattern of pegmatites in that direction or there could be the same ones. So there's just so much work to do. This winter is really focused on understanding what we have, and then when we figure out what area is the best in that combination of higher grades, thicker intervals, closest to surface, those three criteria meet is where we're going to start defining what we have with closer space drilling with a larger budget. Because the unfortunate paradox of this kind of deposit is the larger the project you have, the more meters it's going to take to drill out. So that's just a matter of how many drills you put on the project. So that's really going to be a defining factor for our summer 2025.
Gerardo Del Real: Well, you're capitalized to start the year off. I know you get a tiny bit of a break before hitting the ground hard in early 2025. I'm looking forward to details of that program, and I'm really looking forward to getting those warrants exercised, the mid-February ones, just to bolster up the treasury a bit more and give you some more firepower because I think you have plenty to shoot at here to start the year.
Neil McCallum: Yeah. Oh yeah, for sure. It's going to be a lot of work ahead of us, but it's also really exciting. This is what I'm in it for. This is just primed for additional drill hits in all directions, so couldn't be happier. Couldn't be looking forward to a winter program any more than I am right now.
Gerardo Del Real: Good stuff. Neil, always a pleasure. Enjoy the break and we'll see you on the other side of the year.
Neil McCallum: Good stuff. Thanks, Gerardo.
Gerardo Del Real: All right. Cheers now.
Neil McCallum: Bye.
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