Categories: Energy
Topics: Lithium Stocks

Q2 Metals (TSX-V: QTWO)(OTC: QUEXF) VPE Neil McCallum on Upcoming PEA, 295 Million Tonnes with Rigs Turning

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the VP of exploration for the very busy Q2 Metals (TSX-V: QTWO)(OTC: QUEXF), Mr. Neil McCallum. Neil, it's great to have you on. How are you?

Neil McCallum: Thanks. Great. How are you?

Gerardo Del Real: I'm great. Listen, I mentioned that you're busy. You have a lot going on. You just closed a $70 million private placement that had very, very strong institutional interests. Not coincidentally, you just had a site visit that, I understand, went really, really well and really emphasized the exploration upside, which is... Look, it's interesting because you have 295 million tonnes at 1.36% lithium and you still have a project that's open in all directions. So I want to start there. You just announced the most ambitious exploration program for the company that it's ever undertaken, but I want to start with the site visit. How did that go? How was it?

Neil McCallum: That was great. No, it's really well received. Lots of good feedback afterward. It's really important for people to just understand the scale of it by being on site, looking at the outcrops from one end to the other, looking at the core, the mineralization. I think that got a lot of people interested. You know? It's hard to get that perception from the maps. But being out there, you really get to see it from the air flying around the helicopter. So I think that was really important for a lot of folks to get a handle on.

Gerardo Del Real: Excellent. Look, 2026, it's already been a transformational year. I think it's going to be an even more transformational year because you have a PEA coming up. You have the most, again, ambitious exploration program. So I want to lead there and talk about the program and what you hope to accomplish, because I think it's easy to get lost in the mix. How much exploration upside still exist at Cisco despite the fact that you have 295 million tonnes at 1.36%.

Neil McCallum: Yeah. I mean, that's the balance that we're trying to get to people to understand is that, yes, we have an amazing resource, great tonnage, great grade, and we're going to be infilling that and advancing it. But we have that flexibility now with the cash in hand to do kind of everything. And when I say that, I mean, progressing with what we have as well as understanding the deposit, the upside, because there's just some immediate strike extensions that we can test at the north and south that are captured a little bit in that exploration target. But there's just outcrops that are outside of that even that really haven't been fully tested.

And we've been so focused on driving forward getting in the resource to where it is now, that those have been sort of off priority level just as we try and get that goal. So now we can sort of fill in the gaps of drilling to get to that indicated level, to get to those more advanced engineering studies, at the same time, understanding exactly what we have. And one thing that is helpful to understand too is the property-wide potential that really hasn't been fully understood either. So there's a bit of time early in the season where we can take advantage of that before we're at the full scale drilling program for the summer.

Gerardo Del Real: You're kicking off a PEA. I have to believe that the conversations with potential suitors are likely getting more intense, and then likely more frequent as well. Talk to me about the PEA and what you hope to outline there.

Neil McCallum: Yeah, definitely. So I think it's easy to say that with the top fourth globally significant resource in the hard rock space that that's impactful. But what we don't have any metrics on yet, it's all sort of arm waving with the logistics being good, the resource being good in terms of drill spacing and the strip ratio, that's all good. But we haven't really been able to put any numbers out yet.

So I think that's going to be important for people to realize just to compare Cisco against other projects on the cost basis too, because we've been talking a lot about logistics. And it'll be good to really put that on paper to define exactly what that means for the project.

Gerardo Del Real: You're planning 20,000 meters of drilling. You still have assays pending on 17 drill holes from the winter campaign. What comes next, Neil? I know it's busy for the rest of the year, but how are you prioritizing it all?

Neil McCallum: Yes, for sure. So we're getting assays in. Those will be coming out as they come in. We've started the metallurgy program, and that'll be an important thing as well to pin exactly what the processing type will be once we get to those advanced engineering studies and planning studies. So that'll be ongoing as well. I think that'll be an important piece of news for people to understand.

And again, just adding to the resource, if that pans out for the drilling program this summer and lots of infill. Understanding the ins and outs of the project in terms of some of those high grade zones as well that we're coming up with in the center of the project. That'll be interesting to define as well, potentially. So lots of things to look forward to, as you said.

Gerardo Del Real: A lot, a lot, a lot to look forward to. Looking forward to the rest of the year. Really curious to see if Q2 makes it out of the year without being taken out. I suspect if that is the case, it'll be at a substantial premium from today's prices. Any thoughts on that, Neil?

Neil McCallum: Oh, I can't say anything. So you said it. Nothing.

Gerardo Del Real: There you go. Thank you so much for your time. Looking forward to having you back on as soon as those assays start coming in and as the PEA progresses. Thank you.

Neil McCallum: Yep, of course. Thank you.

Gerardo Del Real: All right. Cheers.

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