QEM Limited - Quarterly Update on Julia Creek Project - 30 July 2024
QEM (QEM) Share Update July 2024 Monday 29th
QEM Limited Reports Significant Progress in Julia Creek Project
QEM Limited (ASX: QEM) has provided a comprehensive update on its activities for the quarter ending 30 June 2024, highlighting significant progress in its flagship Julia Creek Vanadium and Oil Shale Project.
Instant Summary:
- 2024 Scoping Study nearing completion.
- New work program begins with The University of Queensland Sustainable Minerals Institute (SMI).
- Grant application submitted for Vanadium Recovery Project.
- Tenth consecutive Environmental, Social and Governance (ESG) Report released.
Project Overview
QEM Limited's Julia Creek Project (JCP) is one of the world's largest vanadium and oil shale deposits, located in Northwest Queensland. The JORC (2012) Mineral Resource of 2,870 Mt @ 0.31% V2O5 offers a significant opportunity for development. The resource includes 461Mt @ 0.28% V2O5 in the Indicated category and 2,406Mt @ 0.31% V2O5 in the Inferred category, along with a contingent in-situ oil resource of 6.3 million barrels (MMbbl’s) of Oil equivalent in the 1C category, 94 MMbbl’s in the 2C category, and 654 MMbbl’s in the 3C category.
The project is strategically located near major infrastructure, including the $5 billion Copperstring 2032 powerline project and the Flinders Highway and Great Northern Railway line, connecting Mt Isa to the international Port of Townsville.
Scoping Study Progress
During the June quarter, QEM made significant strides towards completing the JCP Scoping Study. RPM Global has finalized the process flowsheets and mass balance, and QEM has reviewed the financial model supporting the study's economic results. The Scoping Study report is expected to be delivered in Q3 2024.
Collaboration with The University of Queensland
QEM continues its collaboration with The University of Queensland's Sustainable Minerals Institute (SMI). The new work program aims to characterize the mineralogical and chemical composition of vanadium host phases in the oil shale, utilizing advanced analytical techniques. This program is expected to take four months, with completion anticipated in Q1 2025.
Vanadium Beneficiation Test Work
QEM has engaged Core Resources to conduct vanadium beneficiation and flotation studies targeting calcite removal from the upper coquina ore material. This work will be a key input into the Pre-Feasibility Study, with the report expected in Q4 2024.
Upcoming Exploration Campaign
QEM and Measured Group have planned the next exploration campaign, consisting of 18 drill holes and 9km of seismic survey tracks. This campaign will focus on expanding the indicated resource and is set to commence in Q2 2025.
Environmental and ESG Initiatives
QEM conducted environmental surface and groundwater surveys, continuing a 12-month baseline study initiated in 2022. The company also released its tenth consecutive ESG report, based on the World Economic Forum's Stakeholder Capitalism Metrics ESG framework. QEM's ESG highlights include a reduction in GHG emissions from 146.80 tCO2e in FY 2022 to 116.15 tCO2e in FY 2023.
Grant Application
QEM has applied for funding through the Queensland Government's Collaborative Development Program to support its Vanadium Recovery Project. This funding will aid in flowsheet optimization and the development of a small-scale pilot testing program in collaboration with the University of Queensland.
The advancements in the Julia Creek Project, particularly the nearing completion of the Scoping Study and the new collaboration with The University of Queensland, are likely to positively impact QEM Limited's stock. The potential for grant funding further strengthens the company's position. However, the market will closely watch the final results of the Scoping Study and the outcomes of the new work programs.
Investor Reaction:
Analysts are likely to view the progress in the Scoping Study and the collaboration with The University of Queensland positively. The potential grant funding for the Vanadium Recovery Project could also boost investor confidence. However, investors will remain cautious until the final results of the Scoping Study and other work programs are released.
Conclusion:
Investors should keep an eye on the upcoming Scoping Study report and the results of the new work programs. QEM Limited's strategic advancements in the Julia Creek Project could offer significant opportunities for growth. Stay informed and consider the potential long-term impacts on your investment portfolio.