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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 Corp. — Mr. Neil McCallum. Neil, a big day for Canadian lithium in James Bay.
I mentioned off-air that I feel like congratulations are in order to you as well because of the $69M offtake and strategic partnership Volkswagen just inked with Patriot Battery Metals; of course, a deposit you’re very familiar with. So congrats on that.
It has to be really gratifying from your perspective to think that, just under three years ago, you started putting a drill hole or two in. And here we are right around the three-year mark, and there’s an offtake agreement and strategic partnership with the largest European car manufacturer in the world.
Neil McCallum: Yes, it’s really cool to see something from a single discovery hole all the way to the point where they're now close to a Feasibility Study. That's very rare in such a short timeframe. Usually, projects are drilled for decades and reinterpreted and so on. But this is a really neat grassroots discovery story that has moved very quickly.
Gerardo Del Real: Yes, and a heck of an endorsement for the region and for the project. And that brings us to Q2 Metals. You 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 lithium-related industries.
You just announced final analytical results from your 2024 drill campaign at the flagship Cisco property. You also announced proceeds of an additional C$1.9M from warrant exercises. And I should mention that those are the C$0.305 warrants.
Neil McCallum: Yes, those are the December 2024 warrants, and we have additional ones coming due in February 2025 at a higher level. Our current share price is well above that so I foresee additional funds coming in this winter.
We’re well-financed at present with approximately C$6.9M in the treasury with which to complete our upcoming winter program. We're more than funded for that runway and for whatever work we’ll be doing in summer 2025.
Gerardo Del Real: Excellent. Let’s get into holes 20 and 21. You just announced assays so I want to get into those results and what the 2024 program achieved. Again, I’m a biased shareholder; I’m excited for the upcoming winter program. I think it's going to be a transformational year for Q2 Metals.
Let's talk about those results and let's talk about — in the context of the entire drill program this past year — how it closes the season for you.
Neil McCallum: Sure, I’d say Hole-20 was not very surprising. It was in between Hole-23, which had 186.6 meters at 1.56% lithium oxide, and Hole-19, which had several wide spodumene-pegmatite intervals. So it really wasn't all that surprising but it's really nice to just have all of that data in, and we've been interpreting the data as we've been drilling.
One thing to note on the long section that we produced in the latest news release is a little bit of a different way of looking at it in 3D. 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 that have yet to be drilled-tested.
A big part of our campaign this winter is to simply keep going and see what's there. By way of the surface indications, we know that something is there. But you never really truly know because these mineralized pegmatites can start at fifty meters below surface and can go quite substantially. Some continuous intervals are 200 to 300 meters so you really only get a little bit of a sniff at surface. The drill holes really tell the story.
Gerardo Del Real: I imagine it must be a bit easier having outcrop as compared to drilling blindly, right?
Neil McCallum: Yes, but it is somewhat blind in the sense that there really are no good geophysical methods for pegmatites. It’s really based on classic geological observations at surface. And then you just drill. You can use whatever data you’ve collected, including downhole optical information. That sort of data gives us some information on the contact direction and confirms whether or not we’re drilling perpendicular to strike.
Again, we're not drilling down dip because, with the data we've collected, our drilling dip shows us very close to perpendicular to the dip of mineralization so we’re just going to continue in that direction toward the south and see how far this goes.
The other part of that story is that we have about double the runway towards the east of those surface showings. There could be a whole repeating pattern of pegmatites in that direction or they might be the same ones. In other words, we have a lot more work to do.
This winter is really going to be focused on understanding what we have and then figuring out what areas are best in terms of a combination of higher grades, thicker intervals, and proximity to surface. That’s the main criteria we’ll be using to define what we have with tighter drill spacing and a larger budget for 2025.
The one paradox in this type of deposit is that the larger the project, the more meters required to drill it out. So it’s really just a matter of how many drill rigs you want to put on the project, which will be one of the defining factors for us in 2025.
Gerardo Del Real: Neil, you're well capitalized as you prepare to hit the ground running in early 2025. I'm looking forward to details of that forthcoming winter drill program. I'm also looking forward to getting those mid-February warrants exercised to bolster up the treasury a bit more as you move into the next phase of drilling.
Neil McCallum: Absolutely. There’s a lot of work ahead of us but it’s also really exciting work. We’re primed for additional drill hits, and I couldn't be any more excited for the start of our winter program.
Gerardo Del Real: Neil, always a pleasure. Enjoy the break and we’ll see you in early 2025 as Phase-2 drilling nears.
Neil McCallum: Thanks, Gerardo. Talk soon.
Gerardo Del Real: Cheers.
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