QX Resources Ltd (ASX:QXR) shares surged as much as 57.5% higher intra-day to 5.2 cents after appointing Steve Promnitz to the role of managing director.
The company has appointed the new MD as it expands exploration activities at lithium assets in Western Australia and gold projects in Queensland.
QXR is aiming to fast-track the development of these assets while also assessing new battery minerals projects that complement the portfolio.
Successful track record
Promnitz recently resigned as managing director from Lake Resources NL (ASX:LKE, OTCQB:LLKKF), a lithium brine developer, as part of a CEO transition.
He successfully secured the lithium assets for Lake Resources in 2016 and developed the previously untested Kachi lithium brine project in Argentina with new technologies to a stage where most project financing is indicatively in place for its development.
In the process, he took a $1 million market value private company, using new exploration models and ESG friendly extraction techniques, to form an ASX 200 Company with a strong balance sheet and a market capitalisation of ~$A2.1 billion at the time of his departure.
Lithium assets in Pilbara
QXR has built a portfolio of highly prospective assets in Pilbara lithium province, WA including Turner River, which is prospective for lithium and located 20 kilometres from Wodgina, Australia’s second-largest lithium mine.
The company has also acquired the Western Shaw project (also in the Pilbara) which is prospective for lithium as well as iron ore, gold and nickel mineralisation.
QXR’s package of granted tenements (and those under application) in the Pilbara region now covers 355 square kilometres.
QXR lithium project locations and regional setting.
QXR executive chairman Maurice Feilich said: “QXR has assembled a quality portfolio of near drill-ready lithium hard-rock assets in Western Australia with some very promising geology.
“As well, our gold assets in Queensland hold considerable unlocked value and growth for future development.
“QXR’s board decided now is the right time to appoint a managing director to fast-track the development of these assets while also assessing new battery minerals projects that complement the portfolio.
“We are fortunate to have secured Steve as our managing director and we are confident that he can drive QXR to the next stage of its growth and development.”
Gold projects in Queensland
Alongside its lithium strategy in WA, QXR has also expanded its portfolio of precious and base metal assets in Queensland.
Through an earn-in agreement with Zamia Resources Pty Ltd, QXR is developing two Central Queensland gold projects – Lucky Break and Belyando – both strategically located within the Drummond Basin, a region that has more than 6.5 million ounces of gold endowment.
Zamia Resources’ mineral assets comprise four Exploration Permits for Minerals (EPMs), including the Disney Tenement which contains the Big Red prospect.
During FY2021-22, QXR completed a maiden 370-metre trenching program which recorded multiple intersections of high-grade gold mineralisation at Big Red, before the program was halted due to inclement weather.
Pleasingly, the company was able to recommence its phase 2 trenching program just prior to year-end which it successfully completed in August 2022.
Samples have now been bagged and sent to ALS Laboratories in Brisbane.
Focus on battery minerals
Incoming managing director Steve Promnitz said: “I am looking forward to my new challenge.
“The QXR Board has accumulated highly prospective battery minerals and gold projects.
“I plan to advance the current assets and expand the focus on battery minerals by drawing on my extensive networks and skills from the past six years in the battery minerals sector.
“I am confident we can transform and scale up QXR into a major player in this sector.
“My immediate focus is to introduce the QXR opportunity to my network, prioritise activities, and actively communicate our growth strategy to existing and potential investors.
“I am confident that we have the right foundation in place to realise much greater value for shareholders.”
Read more on Proactive Investors AU
