Lithium Re-Levitation
Advancing the District-Scale
Cisco Lithium Project
in Canada’s Prolific James Bay Region
TSX-V: QTWO | OTCQB: QUEXF
Click Here to Read Sponsor Disclosure
Q2 Metals Corp. (TSX-V: QTWO)(OTCQB: QUEXF) is advancing what may soon prove to be the NEXT — and quite possibly the largest — world-class, high-grade, district-scale lithium discovery to emerge from the Tier-1 mining jurisdiction of James Bay, Quebec, Canada, one of the safest, mineral-rich places on Earth for lithium exploration and development.
Led by a highly-adept geologic team, “QTWO” continues to point the drills in all the right directions at its flagship Cisco Lithium Project with spectacular high-grade results to-date and with an early market response that’s the current envy of the North American lithium exploration space.
Take a look at QTWO’s 12-month price chart (below) — and particularly the most recent few months:
We believe the early market response speaks for itself.
And best of all for speculators who understand the nuances of the small-cap resource space, it is still very early-innings in the exploration process at Cisco with Phase-1 drilling just now completed and with Phase-2 drilling right around the corner (slated for Q1 2025).
In terms of the Cisco property itself, Q2 Metals acquired what it now considers the crown jewel of its portfolio in Q1 2024 wherein it holds an exclusive right and option to acquire a 100% interest.
Speaking of the portfolio… and to use a hockey analogy… QTWO offers speculators multiple shots-on-goal via the advancement of its equally high-potential, 100%-owned Mia Lithium Project located due north of the flagship Cisco project (see regional property location map above) — also with impressive, high-grade drilling results to-date.
Think of it as a powerful “one-two-lithium-punch” with the very real potential to place Q2 Metals Corp. atop the North American lithium exploration sector… and in record time.
Highly Favorable Mining Jurisdiction
In mining — and particularly in today’s climate of heightened geopolitical instability — jurisdiction simply cannot be overstated.
To that end, not only is Quebec, Canada, one of the most safe and mining-friendly jurisdictions on Earth — currently ranked #5 globally by The Fraser Institute — it’s also home to the fast-emerging James Bay Lithium District where world-class discoveries are presently being unearthed at a rapid clip.
In fact, the unprecedented rate of discovery success unfolding in the James Bay Lithium District is driving $Billions in investment from some of mining’s biggest players, including industry leaders Rio Tinto and Albermarle.
In other words, a world-class lithium area play — the likes of which has never before been seen in the region — is well underway with Q2 Metals Corporation right in the thick of all the James Bay action.
Additionally, and of enormous benefit to QTWO and QTWO stakeholders, Quebec’s favorable mining tax laws mean that for every dollar the company spends on exploration and development in the province, it gets back fifty cents in tax benefit equating to around a 50% discount on exploration.
That’s something you simply do not see in the vast majority of mining jurisdictions around the world… and it’s a tangible advantage Q2 Metals can take directly to the bank for shareholders as it drives exploration forward in this red-hot area play.
James Bay: World-Class Lithium Discovery Potential
One could say Patriot Battery Metals put James Bay, Quebec, on the map with its high-grade, district-scale Shaakichiuwaanaan lithium discovery (formerly known as “Corvette”) back in 2022.
That property is situated due east of Q2 Metals’ 100%-owned Mia Lithium Project and northeast of the flagship Cisco Lithium Project and ranks as the largest spodumene-pegmatite lithium resource in the Americas and 8th largest in the world: 80 million tonnes at 1.44% lithium oxide (“Li2O”) Indicated and 62.5 million tonnes at 1.31% Li2O Inferred.
We’ve aptly named this the James Bay Lithium Triangle, and we’d be remiss not to mention that Q2 Metals’ VP of Exploration Mr. Neil McCallum was directly involved in the initial identification and staking of “Corvette” for then 92 Resources (predecessor to Patriot Battery Metals).
In mineral exploration, it’s often said that you’re only as good as the people running the show!
We believe Neil’s proven leadership and years of boots-on-the-ground expertise in the James Bay Lithium Triangle speaks volumes to the discovery prowess of the Q2 Metals team, of which we’re seeing the tangible proof of now in the early drill rounds.
Yet, despite Neil’s early involvement in that now world-famous discovery, you won’t be hearing us make any direct comparisons between Q2’s flagship Cisco project and Patriot’s Shaakichiuwaanaan/Corvette project in this Special Report.
Why?
The reason is simple: With the consistent, wide intervals of exceptionally high-grade lithium mineralization coming out of Cisco by way of the drill-bit, we firmly believe QTWO’s flagship asset stands very tall on its own merits.
We’re about to delve far deeper into the details… but for the moment, let’s just say that QTWO’s inaugural drill program at Cisco has been a resounding success.
At the expert direction of Neil McCallum, the recently-wrapped Phase-1 program has consistently delivered a series of wide intervals of lithium-bearing spodumene-pegmatite — the preferred host-rock type for world-class lithium discovery in the James Bay region.
In addition to the spectacular widths being encountered, lithium oxide grades have been practically off-the-charts — in some cases well above 2.0% Li2O.
Assays from Phase-1 are continuing to come in in such rapid succession that, by the time you finish reading this Special Report, there may be even more high-grade Li2O results hitting the wire.
The market response, as noted, has been very favorable thus far.
The numbers simply don’t lie. Nor do the drills, or “truth machines” as those of us in the mining world like to call them.
Further to that point, anyone worth their salt in mineral exploration will tell you: It’s ALL about grade and scale.
To that end, the Q2 Metals team has already proven that Cisco can indeed deliver grade. It’s now simultaneously and systematically proving up scale via a series of wide spodumene-pegmatite intervals.
Most importantly — and this is absolutely critical — the high-grade spodumene-pegmatite lithium discovery being mapped out at Cisco is still in the very early exploration phase with only about a quarter of the property explored thus far.
Translation: The speculative window below C$1.50 per share is wide open as the company progresses toward Phase-2 drilling in Q1 2025.
Coming up next…
In this Special Report, we’ll be bringing you up-to-date on the highly impressive drilling progress at Q2’s flagship Cisco project as the company moves toward a maiden Mineral Resource Estimate (MRE).
We’ll also be bringing you as close to being onsite at Cisco as humanly possible (without actually going there!) via our exclusive interview with the aforementioned Mr. Neil McCallum, Q2’s VP of Exploration.
Buckle in folks… with Phase-2 drilling up next, Q2 Metals in James Bay, Quebec, is shaping up to be one of the fastest-emerging North American lithium discovery stories we’ve seen in years.
Q2 Metals: Flagship Cisco Lithium Project
Let’s start with the strategic acquisition.
Q2 Metals acquired the option to earn 100% of the 11,374-hectare Cisco lithium property in February 2024.
For those keeping score, that’s just 10 months ago… and, once again, the drilling progress has been absolutely phenomenal out of the gate.
The district-scale-potential property, which spans 222 mineral claims, lies within the greater Nemaska Community lands of the Eeyou Istchee Territory in James Bay, Quebec.
Situated along the Frotet-Evans Greenstone Belt, Cisco is comprised of a volcanic package dominated by mafic to felsic metavolcanic rocks of the southern James Bay Lithium District; the same belt that hosts the Sirmac and Moblan lithium deposits located 130 km and 180 km east of Q2’s flagship, respectively.
Total consideration for the Cisco acquisition was 60 million shares, C$2.4M in cash, and exploration expenditures of C$12M spread over four years. Upon satisfaction of those payments and expenditures, Q2 Metals will earn a 100% interest in the Cisco property.
Regional infrastructure is robust and includes highway access and close proximity to a forest service camp (see below).
Now, here’s where things get really exciting.
In May 2024, the QTWO field team, led by Neil McCallum, hit the ground running, or shall we say “sprinting” at Cisco with a detailed mapping and sampling program.
By August — just three short months later — the team had announced the discovery of 8 new mineralized outcrops within the initial area-of-interest for a total of 23 spodumene-pegmatite zones now being mapped at the property.
That initial target zone has since been systematically expanded to a 1.9 km by 1.5 km area-of-interest, which includes zones CO1 through CO23 (see below).
Drilling Commences at CO1 Zone
Immediately following that highly successful mapping and sampling program, Q2 Metals revved up the drills on a spring 2024 program of 3,750 meters across 12 holes.
Highlights from that program came fast and furious, including:
- Hole CS-24-010: Widest interval of 120.3 meters at 1.72% lithium oxide (Li2O) including 19.0 meters at 2.06% Li2O.
- Hole CS-24-007: Widest interval of 27.1 meters at 1.96% Li2O including 11.1 meters at 2.49% Li2O.
- CS-24-008: Widest interval of 19.3 meters at 1.75% Li2O including 6.2 meters at 2.23% Li2O.
- CS-24-009: Widest interval of 82.1 meters at 1.43% Li2O including 15.7 meters at 1.88% Li2O.
Keep in mind that, in terms of James Bay hosted spodumene-pegmatite, lithium oxide (Li2O) grades within the 1.0% to 1.5% range are considered highly favorable (Corvette, for example, averages right around 1.4% Li2O).
As clearly indicated by the above results, Cisco, right out of the gate, has been able to produce Li2O grades well within that favorable range — and, in some cases, far above it.
Most importantly, the fully-funded drilling is only just getting started with Q2 Metals recently completing a non-brokered private placement financing for gross proceeds of C$6.87M with the bulk of funds going directly into exploration and drilling, which is precisely what speculators like to see in the early exploration rounds.
Q2 Metals VP of Exploration Neil McCallum — whom you’re about to hear from directly in our exclusive interview coming right up — commented on the first batch of drill results from Cisco via press release:
“The first few drill holes completed at Cisco in 2024 have far exceeded my expectations. The spodumene-pegmatite intervals are continuing down dip around the previously drilled holes, and our most recent hole (CS24-010) testing the strike extension of the CO1 zone has encountered a very wide mineralized zone. The outcrop mapping and sampling of the region has indicated that the Cisco Property has significant potential. The possibility that several of these occurrences are linked at depth is a very significant and very real possibility that we plan to test as the field season continues.”
Summer 2024 Drill Campaign
Building off of the resounding success of the spring 2024 program at Cisco, the Q2 Metals team moved directly into a summer program with a couple of main focuses:
- Exploring a possible connection of the wide, continuous pegmatite zones encountered in holes CS24-018 and CS24-010 located approximately 300 meters apart.
- Continuing to drill the large 1.9 km by 1.5 km surface mineralized area in a systematic grid-like manner with wide, 200-meter hole spacing with infill drilling in select areas.
And that is precisely what the Q2 Metals team has done.
On 11 September 2024, QTWO announced yet another set of wide intervals of continuous spodumene-pegmatite:
- Hole CS24-021 encountered 5 spodumene-pegmatite intervals with the widest continuous interval of 347.1 meters — the longest interval announced by the company to-date.
- Hole CS24-019 encountered 16 spodumene-pegmatite intervals with the widest continuous interval of 56.8 meters.
- Hole CS24-020 encountered 17 spodumene-pegmatite intervals with the widest continuous interval of 22.2 meters.
Neil McCallum commented on the exceptionally wide interval produced in drill hole CS24-021 via press release:
“With the verification of a large and continuous mineralized body at the core of our drill-tested area, hole 21 has been an absolute mindset shift for our team. Our next steps will be to continue to expand upon our already excellent results.”
Additionally, hole CS24-023 encountered 15 individual spodumene-pegmatite intervals of which 8 were greater than 10 meters wide with the widest individual interval measuring 188.6 meters.
Integral to the process of proving up scale, the program has successfully extended the drill-defined strike length between the CO1 and CO12 zones to 850 meters (see below).
Again, those results were released on 11 September 2024. Then, just two short weeks later, the Q2 Metals team released yet another batch of impressive results from Cisco.
- Hole CS24-022 encountered 14 spodumene-pegmatite intervals with the widest continuous interval of 52.3 meters.
- Hole CS24-023 encountered 15 spodumene-pegmatite intervals with the widest continuous interval of 188.6 meters.
Then, on 1 October 2024, Q2 Metals released assays from another 7 drill holes at Cisco.
Those assays were particularly well-received by the market, not just because of the quality of the results but also because the market — FINALLY — appears to be putting two-and-two together that Q2 Metals is on to something very, very special at Cisco.
First, all 7 reported drill holes intersected pegmatite with visual indications of spodumene mineralization identified. That’s vitally important as it shows a continuity of mineralization from drill location to drill location.
The following highlights were also produced:
- Hole CS-24-018: Widest interval of 215.6 meters at 1.69% Li2O including 64.6 meters at 2.29% Li2O.
- Hole CS-24-011: Widest interval of 81.8 meters at 1.17% Li2O.
- Hole CS-24-013: Widest interval of 59.5 meters at 1.18% Li2O.
And speaking of continuity of mineralization, drill hole CS-24-018, highlighted above, is the first hole with analytical results confirming what the QTWO team characterizes as a large mineralized zone to the south; see drill core image (below) with visual spodumene crystals.
If this is beginning to sound like a broken record… it’s music to the ears of the Q2 Metals team and a highly impressive way to wrap up the company’s inaugural drill season at Cisco.
Q2 Metals president & CEO Ms. Alicia Milne also chimed in on the results via press release:
“We are extremely pleased with these assay results, which continue to demonstrate the world-class nature of the Cisco Project. It is difficult to ignore the significance of what we've discovered at Cisco and our team is committed to continuing to unlock Cisco’s full potential.”
Neil McCallum added:
“These assays continue to validate the potential and scale of the Cisco Property as that of a larger mineralized system. One important observation of these results is the higher-grade nature of the larger mineralized system as we test and track the system progressing to the south.”
As mentioned, the market responded very favorably to that particular batch of results with a drastic increase in average daily trading volume from around a few hundred thousands shares per day to a couple million shares per day.
The stock also jumped from around C$0.80 per share to over C$1.40 per share in just nine trading days (Oct 1-11, 2024).
We believe it’s a safe assumption that if the final batch of assays from 2024 drilling (6 holes remaining) is able to deliver similar results to those earlier holes, speculators could very well be looking at yet another upward re-rating in QTWO shares.
What’s Next for Cisco?
Drilling, drilling, and more drilling!
That, of course, is in addition to those forthcoming assays from the final 6 holes of the inaugural 17-hole (6,300-meter) 2024 drilling season.
From a speculator’s perspective, what you really want to see in the early exploration rounds in James Bay is consistent assays showing wide intervals of high-grade lithium oxide (Li2O) mineralization.
And that’s precisely what the QTWO team has been able to deliver from the very first batch of assays to the most recent.
It’s also the stage where the real market excitement is typically driven as the potential grade and scale of an emerging discovery begins to take form.
That’s where we sit now with Q2 Metals Corporation.
In terms of what’s next for Cisco, the Q2 Metals team is in the advanced planning stages of a winter 2024-25 exploration and drilling program — slated to commence in early Q1 2025.
The program’s aim will be to further define and expand what’s shaping up to be a large, continuous zone of well-mineralized spodumene-pegmatite at Cisco.
In other words, a potential word-class lithium discovery-in-the-making.
Best of all, the company now has a detailed roadmap with which to follow the mineralization to new potential zones, which is something you’ll be hearing a lot more about in our exclusive interview with Neil McCallum coming right up.
Mia Lithium Project
Far from a one-trick pony, Q2 Metals is also advancing the aforementioned, 100%-owned Mia Lithium Project.
The 8,668-hectare Mia property comprises 171 mineral claims and is located 62 km east of Wemindji Community in the Eeyou Istchee Territory in James Bay, Quebec.
The geology at Mia is representative of the Yasinski Group of rocks, characterized by narrow greenstone volcanic and related sedimentary rocks situated within the western extremity of the geological trend and known for hosting spodumene-bearing pegmatites.
The ~10-km-long Mia Lithium Exploration Trend is situated 22 km from the Billy Diamond Highway and is proximal to a major hydro-powerline supported by all-season road infrastructure.
The trend comprises a ~10-km-long series of sub-parallel pegmatite intrusions, of which 11 show spodumene mineralization at surface.
The individual pegmatite bodies vary in thickness from a few meters to twenty-plus meters in some cases. Combined with the 2023 fall drill program, a total of 8,685 meters were completed over 50 drill holes along the Mia Trend.
In Q2 2024, Q2 Metals announced assay results from its inaugural drill program at Mia.
The program confirmed the presence of wide spodumene-mineralized pegmatites containing high-grade Li2O intervals at the Mia Zone:
- Hole MIA24-033: Widest interval of 13.7 meters at 1.28% Li2O including 9.1 meters of 1.79% Li2O.
- Hole MIA24-039: Widest interval of 8.8 meters at 1.33% Li2O including 5.8 meters of 1.71% Li2O.
The program also confirmed the continuity of mineralization at the Mia 1 through 3 zones (see below).
Neil McCallum commented on the winter 2024 results from Mia via press release:
“Our modest Winter Drill Program continued to successfully confirm the continuity of the mineralization encountered during our fall drill program at the Mia 1, 2 & 3 Zones. These results have provided us with information about what is happening across the broader Mia Trend and will be used to vector towards areas where we will test for thickening and higher-grade mineralization.”
Next steps at Mia include a property-wide mapping and sampling program along with plans to follow up on several high-priority targets identified through a recently completed airborne LiDAR survey.
With discoveries of significance being quite rare in nature, we are impressed by the manner in which the Q2 Metals team has set itself up for potentially multiple district-scale lithium discoveries in Quebec’s James Bay region.
All indicators point to 2025 being a pivotal and transformative year for the company and QTWO / QUEXF shareholders.
Lithium’s Powerful Resurgence
Lithium — the soft, silvery-white alkali metal — is highly reactive, making it essential in various industrial applications, most notably in lithium-ion batteries for powering virtually everything from smartphones and laptops to electric vehicles (EVs) and hybrids.
The market is finally beginning to realize that any semblance of a true clean energy future will require vast amounts of the lightest metal on Earth — LITHIUM.
Demand for the aptly-named “White Petroleum” has grown exponentially over the last decade-plus with the rise of renewable energy technologies driving the narrative.
The metal’s unique properties make it irreplaceable in high-performance batteries, which are pivotal in energy storage solutions, transportation, and portable electronics.
Lithium is also represented on several countries’ Critical Minerals lists, including the United States, Canada, and Australia.
Lithium prices are influenced by a myriad of factors ranging from technological advancements and supply chain dynamics to geopolitical and environmental considerations.
After a record-breaking rally in 2022 to around $80K per tonne, lithium carbonate prices have come all the way back to pre-pandemic levels where prices have stabilized around $10K - $11K per tonne.
It’s all part of the growing pains that are typical of any new market… particularly a relatively new commodities market entrant such as lithium carbonate.
EV Market Cools
The global EV revolution, while still robust, has cooled a bit in recent quarters with a number of automakers, including GM and Ford, scaling back EV production — at least temporarily.
Overall, the future of lithium pricing looks promising with growing demand driven by the global shift towards electrification and renewable energy across a myriad of industries.
What we’re likely seeing at present is a bottoming of the lithium market, which, obviously, can take a bit of time to work through.
Yet, the fundamentals are clearly in play for higher lithium prices going forward.
For example:
- In China, the world’s largest EV market, electric vehicle sales are up around 18% as compared to last year with recent stimulus measures driving additional demand.
- EV sales are up across Scandinavia: In Denmark, EVs and hybrids now account for approximately half of all new car sales; in Sweden, EV market share is up to around 43%; and in Finland, more EVs are being registered than internal combustion engine automobiles.
- In Europe, EV registrations are up around 20% year-over-year.
In the United States, the Biden Administration continues to allocate $Billions upon $Billions for lithium-related projects.
The first round of US Department of Energy (DOE) funding derived from the $1T infrastructure bill (2021) included $1.8B for 14 battery projects.
More recently, in September 2024, the DOE announced a new round of funding totaling over $3B for 25 projects across 14 states designed to boost the domestic production of advanced batteries and battery materials nationwide.
Then, in October, it was announced that EVgo had secured a $1B loan guarantee from the DOE to expand America's EV charging network.
The DOE also just shelled out $225M for the build-out of Standard Lithium’s South Arkansas lithium extraction project.
Clearly, the US government understands the urgency with which it needs to secure an ample and safe supply of lithium to serve the energy transition build-out.
And frankly, we can’t think of any safer supply than what’ll soon be coming out of Canada — particularly Quebec’s prolific James Bay region.
M&A On-the-Rise
It’s not just governments that are getting the lithium memo.
The surest sign of a positive shift in commodity sentiment is when the industry’s top players begin making big moves… and we’re beginning to see that as well.
Industry giant Rio Tinto just announced its acquisition of Arcadium Lithium in an all-cash US$6.7B deal, to which it paid a 90% premium.
The landmark acquisition positions Rio Tinto to become one of the world’s largest lithium suppliers, behind Albemarle & SQM, and signals what could very well be a bottoming of the lithium market, sparking a new wave of opportunistic M&A.
On top of that, the deal can be seen as a major endorsement of the future of global lithium demand with Rio remaining steadfast in its long-term positive outlook for the metal with projections for a developing market deficit and a double-digit growth-rate to 2040.
Rio Tinto CEO Jakob Stausholm had this to say:
“... Lithium is one of the fastest growing markets today and is expected to reach an even greater scale in the coming decades… We have complementary geographic footprints and share rich experience operating in Argentina and Quebec, Canada, where we plan to establish world-class lithium hubs benefiting from economies of scale and deep local knowledge…”
Again, music to the proverbial ears of Q2 Metals, which finds itself advantageously positioned in Quebec’s James Bay region with not one but two potential world-class lithium discoveries being advanced with fervor via the drill-bit.
Supply Side Takes a Hit
On the supply side, we’ve been seeing a substantial amount of lithium production go offline in China of late, particularly in the Jiangxi province, which accounts for around 5% to 6% of global lithium supply.
That news came from China’s CATL — the world's largest battery producer.
Supply disruptions of such magnitude, no matter what the commodity, can have a major positive impact on pricing as demand begins to outstrip supply.
Suffice to say, there are tailwinds and headwinds alike in the current lithium market, which is all part of the bottoming process.
Taken as a whole, as the world continues to embrace green technologies, lithium is particularly well-positioned to play an ever-increasing role in the journey towards a cleaner and more sustainable future for our planet.
We’re beginning to see signs of that now.
Lithium carbonate prices have stabilized in recent trading and are, dare we say, finally beginning to tick higher.
Even Citi is calling for a 20% rise in lithium spot prices by year-end. That’s just a couple of months away.
Lithium Equities Getting a Boost
Some of the positive sentiment we’ve been talking about is beginning to show up in the equities.
Across-the-board, lithium explorers, developers, and producers have all been bouncing significantly off of recent lows, which, to us, looks like a trend with legs going into 2025.
The contrarian mindset means going against the grain: In terms of lithium speculation, it means having the foresight to recognize a positive shift in sentiment early on and then acting accordingly BEFORE the investing herd.
Q2 Metals fits that contrarian mindset to a “T.”
The company is systematically mapping out what could prove to be two district-scale spodumene-pegmatite discoveries in Quebec’s James Bay Lithium District in what has been, until very recently, a severe down market for the metal.
The market is just now beginning to take positive inventory of QTWO’s impressive drilling success in the region. Just imagine the level of upward momentum that could manifest once the rest of the market catches on to the ever-improving fundamentals we’ve been discussing herein.
Remember, as a relatively new market, the lithium cycle has shown a propensity for violent moves to both the upside and downside.
With sentiment finally shifting in our favor, well-timed contrarians could be looking at one of those highly-lucrative entry-points that arises only every so often.
For much more on the lithium market and Q2 Metals’ robust growth prospects in Quebec’s prolific James Bay Lithium District, here, as promised, is our exclusive, late-breaking interview with Q2 Metals VP of Exploration Mr. Neil McCallum.
Exclusive Interview with Q2 Metals Corp.
Vice President of Exploration Neil McCallum
Our own Gerardo Del Real of Resource Stock Digest and Junior Resource Monthly recently caught up with Q2 Metals VP of Exploration Mr. Neil McCallum to discuss the global lithium market and the yeoman’s work being done in James Bay.
Neil is a professional geologist with nearly 20 years of experience in the North American mining industry having served as an independent director for several public companies where he has been involved in the identification and acquisition of early-stage lithium projects, including Corvette for 92 Resources, and, most recently, Cisco and Mia for Q2 Metals Corp.
We hope you’ll enjoy our exclusive conversation.
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, it’s great to have you back on. How are you today?
Neil McCallum: I’m doing well, Gerardo. It's a great day with lots of conversations with a lot of folks discussing the news we just put out. I’m happy to expand on that today.
Gerardo Del Real: Well, let's get right into it. You just published an interval of 215.6 meters at 1.69% lithium, including a 64.6-meter interval at 2.29% lithium at the Cisco project. You have grade, you clearly have scale, and you clearly have continuity.
Can you provide some context on Hole 18? Then, can you provide some context on how Holes 18, 11 and 13 all hold up together in regard to where they were drilled?
Neil McCallum: Yes, and it’s important to explain that our understanding of the project evolves with every drill hole because we don't have a lot of surface exposure… and especially for holes, such as Hole 21, where there's virtually no outcrop above where we drilled.
Our understanding is changing, and our understanding of the orientation of the pegmatite is changing quite a bit too. Originally, we were thinking east-west trending because that's what it looked like at surface. But now, we're seeing more of a north-south trend. And that's taking us from Holes 10 and 11 down through 21 and 18. And that’s where we're seeing those larger, wider intervals.
Worth mentioning, Hole 21 has a continuous pegmatite interval of 347 meters… so that one is waiting to be reported on in terms of assays. We don't have those back yet. We’re looking forward to getting those out to market because that's really going to bolster the story in terms of these wider, larger intervals.
Gerardo Del Real: You mentioned the evolving nature of your understanding of Cisco. Where does it stand now from what you've seen in the core? Then, I want to talk about the upcoming winter drill program and the potential for a first resource estimate.
Neil McCallum: That's a very good question. At this stage, it's too early to say when we're going to put out a resource estimate. We have a lot of work ahead of us. Keep in mind, we only started working on this project in June of this year so it's early days. In terms of that, we're going to need to do some infill drilling in order to do a resource estimate.
We've thought about an exploration target, which we can do with very little information. But the confidence is very low on that. So we don't really want to put something out where it's just hand-waving at this point.
So far, we’ve only drilled roughly a quarter or less of the entire surface area of what we've seen. That's an important piece. People have arm-waved on their own in terms of putting sort of back-of-the-envelope potential resources out there. Yet, keep in mind, we're only getting started, and it's going to be a very busy winter.
We're going to be as aggressive as we can in terms of getting out there and expanding things as we gain an understanding of where this is going and how many more large intervals we can get along strike. There’s potential for parallel zones as this is a large area. As I mentioned, only about a quarter of what we see at surface has been explored at depth… so there's a lot of work to do.
Gerardo Del Real: I’ve got to tell you, Neil, the potential for parallel zones, given the fact that a lot of this is undercover, excites the heck out of me. I mean, it has to excite you and the team. What does a winter drill program look like?
Neil McCallum: Yes, right now, we're looking at two drill rigs at a minimum. Winter road access should get us onto the property late January, early February. And we'll be going right up until the end of April. So that’s going to be quite a few solid months of turning the drills and getting core and hopefully finding some more significant intervals.
Gerardo Del Real: There was a question on one of the chat boards asking why Hole 17 assays are still pending and why it was resubmitted for testing. Can you speak to that a bit?
Neil McCallum: Yes, that was essentially straightforward laboratory stuff where they need to ensure they’re reporting things that pass standards. Whenever they're doing their work, and whenever we're reviewing results, we're comparing those against whether it's standard reference materials that are inserted or blanks or duplicates.
I'm not sure exactly what didn't pass in the lab but they're making sure they are reporting high-quality results — so that's fine. We'll just put that out when we get it… perhaps with the next batch of results or maybe it'll be standalone. We'll wait and see when that comes in.
Gerardo Del Real: Excellent. Back to Hole 21. When we talk about 347.1 meters of continuous spodumene pegmatite and the consistency of the grade thus far, in the last interview you and I did, we talked about how I anticipated pretty similar grades because of the way it's holding up really, really well.
Well, let me ask you a better question. Is all of the core looking pretty similar to you when you're pulling this stuff out?
Neil McCallum: Yes, exactly. It is looking very similar, especially in these larger, wider intervals. One of the great things this project has is those larger intervals. For example, Hole 18 is higher grade than many of those narrower 5 to 20 or 30-meter intervals. So we're quite happy to see that the grade is remaining high for those larger intervals.
That's going to help us when putting resources together. The obvious target will be to follow those large intervals. Of course, those 30-meter intervals on any other project would be great drill intercepts. But for us, that's more of a side thought at the moment.
Gerardo Del Real: It's funny, I remember having similar conversations early on with Patriot Battery Metals. Where most lithium companies would be thrilled to have 30 and 40-meter intervals, with Cisco and with early Patriot, those 30 and 40-meter intervals barely even get talked about.
Neil McCallum: Yep, exactly.
Gerardo Del Real: Speak to me about the metallurgical observations thus far. I'm aware that there hasn't been a lot of work done in that area just yet. But with the size of the crystals and the way that the spodumene is looking, can you make any interpretations in regard to that?
Neil McCallum: Sure, while still preliminary as we haven't done all of the work that’s needed, looking at the core, we've published close-ups of a few intervals showing the spodumene crystals. They're not one and a half meters like some projects — but that's fine. They are quite large.
And they’re large enough to potentially be amenable to low-cost processing. We're going to be verifying that. The work we’ve done thus far shows that the core is predominantly spodumene… so that's a positive sign for us.
Gerardo Del Real: Excellent. Neil, everyone’s anticipating assays. I’m looking forward to having you back on hopefully in the next week or two. Anything to add to that?
Neil McCallum: Sure, as I said, we'll be getting the results out as soon as we can, and it's going to be a very busy October, November.
Gerardo Del Real: Good stuff. Thanks for making time, Neil. Appreciate it as always.
Neil McCallum: Absolutely. Thank you, Gerardo.
The Q2 Metals Opportunity
Q2 Metals Corp. (TSX-V: QTWO)(OTC: QUEXF) is advancing the flagship Cisco Lithium Project and the Mia Lithium Project in James Bay, Quebec, Canada — a rapidly emerging North American lithium district.
At Cisco, the QTWO team is in the advanced planning stages of a winter 2024-25 exploration and drilling program aimed at continuing to define and expand what’s shaping up to be a large, continuous zone of well-mineralized spodumene-pegmatite with excellent results to-date.
Those results include a number of wide, high-grade spodumene-pegmatite intervals in multiple holes with assays due for the final 6 of 17 holes from the inaugural drill season.
As just one example, assays are due for hole CS24-021, which encountered 5 spodumene-pegmatite intervals with the widest continuous interval of 347.1 meters — the longest interval announced by the company to-date at Cisco.
The market has thus far been reacting very favorably to the results. And a large part of that is the mining jurisdiction itself.
James Bay, Quebec, is quickly making a name for itself as North America’s newest lithium epicenter with a number of high-grade lithium discoveries of significance being unearthed as we speak.
Earlier, we mentioned the world-class Shaakichiuwaanaan / Corvette discovery from the James Bay region, of which QTWO’s VP of Exploration Neil McCallum was involved with early on.
Today, at the expert direction of Mr. McCallum, Q2 Metals appears to have a tiger by the tail of its own with the exceptionally high lithium grades being encountered at Cisco via the drill-bit.
QTWO just wrapped a very successful inaugural drill season at Cisco with plans to rev up the drills in a next-phase campaign starting in early 2025… keeping in mind also that only about 25% of the property has been explored thus far.
You just heard from Neil in our exclusive interview. In regard to the Cisco project, he says,
“So far, we’ve only drilled roughly a quarter or less of the entire surface area of what we've seen. That's an important piece. People have arm-waved on their own in terms of putting sort of back-of-the-envelope potential resources out there. Yet, keep in mind, we're only getting started, and it's going to be a very busy winter. We're going to be as aggressive as we can in terms of getting out there and expanding things as we gain an understanding of where this is going and how many more large intervals we can get along strike. There’s potential for parallel zones as this is a large area.”
Additionally, at the company’s 100%-owned Mia Lithium Project, the QTWO team is moving forward with a property-wide mapping and sampling program along with plans to follow up on several high-priority targets identified through a recently completed airborne LiDAR survey.
In other words, plenty of fully-funded exploration initiatives on tap at the two properties next year, and over the next few years, as the company delineates what could prove to be not one but two district-scale lithium discoveries in Quebec’s James Bay region.
In terms of structure, Q2 Metals boasts a non-fully-diluted market capitalization of roughly C$190M: ~130 million shares outstanding; C$1.45 recent price per share.
As noted throughout, the market has thus far been reacting very favorably to the results coming out of Cisco as illustrated by the 12-month QTWO chart below. Plus, there’s presently core in the lab from the remaining 6 holes of the company’s inaugural drill season with which to potentially drive the near-term needle.
Speculators can reasonably expect an uptick in news flow in the coming weeks and months as those assay results trickle in from the lab and as more details emerge from the company’s upcoming Phase-2 winter 2024-25 drill program.
With lithium prices beginning to firm up following a multi-year retracement, now is an excellent time to begin conducting your own due diligence on Q2 Metals Corp. — symbol QTWO on the Toronto Venture Exchange and symbol QUEXF on the US-OTCQB Bulletin Board Exchange.
A great place to start is the Q2 Metals corporate website.
There, you can sign up to receive updates directly from the company, view the most recent Corporate Presentation and much more.
Be sure to also follow our exclusive interviews with upper management here.
— Resource Stock Digest Research
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