- The Irgon Lithium Mine Property is a mineral-rich spodumene-bearing pegmatite dike with significant historical data that point to additional as-of-yet untapped potential
- The property is uniquely positioned to be brought into production much faster than expected for a project of this size due to work previously done
- Lithium demand is projected to continue to rise thanks to electrification of both civilian and commercial transport, as well as the expansion of energy storage technology
As global lithium demand continues to rise with the electrification of the global transportation fleet, QMC Quantum Minerals Corp. (OTC: QMCQF) (TSX.V: QMC) (FSE: 3LQ) finds itself able to begin lithium production on an expedited timetable. QMC is preparing to bring the Irgon Lithium Mine Project online for production, and it has hired SGS Canada to complete a NI 43-101 report on the resources contained within the property.
The Property has been Explored in the Past
The Irgon Property is notable in that it was previously explored in 1953-54 by the Lithium Corporation of Canada (LCOC), which drilled off and sampled a part of the Irgon Pegmatite Dike. The company estimated that the sampled part of the dike contained about 1.2 million tons of ore over a strike length of 365 meters (1200 feet) and to a depth of 213 meters (700 feet). Within this volume of rock, LCOC calculated an average grade of 1.51 percent Li2O. LCOC also excavated a three-compartment shaft, set up a processing mill and built a road from the property to a nearby highway. However, the mine project was shut down before production could begin due to low lithium prices at that time.
Since then, QMC has reviewed the historical data that LCOC collected and has spent time evaluating, geologically mapping and assay channel sampling the surface exposure of the dike in a process aimed at confirming the data. After increasing its land position by 655 percent between Q4 2016 and Q4 2018, QMC’s mineral claims at the Irgon Lithium Mine Project now total over 11,000 acres. By drilling deeper and extending the strike laterally, the company is expecting to report significantly more ore in its upcoming NI 43-101 document than the historic 1.2 million ton resource previously reported by LCOC.
Friendly Regulation
Given Manitoba’s regulatory support of mining, the approval process is expected to pass smoothly by year-end. Additionally, as there is already a three-compartment shaft excavated onsite, mining and processing equipment can be moved in rapidly after filing and receiving approval to begin production. By processing the spodumene-bearing ore on-site before shipping, QMC estimates that it will realize a savings making it comparable to the cheapest Chinese or Chilean brine producers (http://ibn.fm/xXoPt).
Another benefit that QMC is expecting to realize is that lithium demand is projected to continue increasing. Most of the demand originates from electric transportation, energy storage and portable electronics, and this demand is expected to triple by 2025, according to Lithium Investing News (http://ibn.fm/YouWh). Auto manufacturers are already beginning to lock in suppliers for five- and 10-year contracts, as various analysts are expecting EV sales to surge from 1.1 million worldwide in 2017 to 11 million in 2025 and as much as 30 million by 2030 (http://ibn.fm/FCnvN). Given the lithium industry’s historically slow production ramp-up time, this surge in demand will greatly benefit companies like QMC that are able to provide supply early.
For more information, visit the company’s website at www.QMCMinerals.com
