Q2 Metals (QTWO.V) has released its maiden resource estimate on its flagship Cisco lithium project in Quebec’s James Bay region. As expected, this initial resource is very large, coming in at 295 million tonnes at 1.36% Li2O using a cutoff grade of 0.4% for the open pit segment and 0.7% for the (small, 25 million tonnes) underground segment. The company has also outlined an additional exploration target of 44-67 million tonnes at a grade of 0.88-1.35% Li2O, which would lift the total resource to in excess of 300 million tonnes of mineralized material.
This resource is based on the continuous spodumene pegmatite body extending for almost two kilometers with true thickness of the mineralization averaging between 2 meters and 450 meters. This maiden inferred resource puts the Cisco in the Top-5 worldwide of lithium projects ranked by size.
The company is now also raising C$60M on the back of this resource at a price of C$2.45 per common share and C$3.60 per flow-through share.
Disclosure: The author has no position in Q2 Metals. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
