Q2 Metals to Acquire 100% of the Large-Scale Cisco Lithium Property Located in James Bay, Quebec with Historical Assays Including 115.4 Metres at 1.21% Li2O
Q2 Metals to Acquire 100% of the Large-Scale
Cisco Lithium Property Located in James Bay,
Quebec with Historical Assays Including 115.4
Metres at 1.21% Li2O
Highlights:
Q2 Metals to acquire
100% interest
in the Cisco Lithium Property, consisting of 222 claims
totaling 11,374-ha.
Highly prospective
with the potential for multiple large-scale lithium discoveries.
Limited historical exploration
with only six drill holes completed, the majority of which undercut
mineralization.
Two historical drill holes returned:
115.4 m at 1.21% Li2O
cumulative width of five separate pegmatite intervals in hole CS-23-
05.
57.8 m at 1.27% Li2O
cumulative width of three separate pegmatite intervals in hole CS-23-
06.
District-scale potential
along three separate trends totaling approximately 37.5km in strike
length.
Close to regional infrastructure
with the Billy Diamond Highway less than 10km away and
approximately 150km north of Matagami, Quebec.
Q2 remains well funded
to undertake a high-impact drill program at the Cisco Lithium Property in
the coming months.
Vancouver, British Columbia--(Newsfile Corp. - February 29, 2024) -
Q2 Metals Corp. (TSXV: QTWO)
(OTCQB: QUEXF) (FSE: 458)
("
Q2
" or the "
Company
") is pleased to announce that it has entered into
three individual option agreements which gives the Company the exclusive right and option (the
"Option") for the acquisition of a 100% interest in three groups of minerals claims, collectively known as
the Cisco Property (the "
Property
" or the "
Cisco Property
"), subject to the retention by certain vendors
of a gross metals return royalty, as further detailed below.
The Cisco Property is located in the southern
portion of Eeyou Istchee James Bay, Quebec, Canada.
"Adding the Cisco Property with a new discovery and district-scale exploration potential to our current
portfolio is a game-changer for Q2 Metals and all of our stakeholders,"
said Alicia Milne, President &
CEO of the Company.
"With the notable spodumene intercepts from the work done to date, we believe
the Property has considerable potential. We have worked with the Property vendors in the past and
look forward to continuing our relationship with them."
Neil McCallum, Q2 Metals Vice President Exploration, commented,
"The Cisco Property potentially
holds tremendous value for Q2 to unlock. The exploration work done by the Property vendors
uncovered exceptional results in a short amount of time. Combined with the considerable property-
wide exploration along an untested cumulative 37.5 kilometres along three separate trends, we're
looking forward to a busy year ahead with work at both Mia and Cisco."
About the Cisco Project
The Cisco Property is comprised of 222 mineral claims and is 11,374 hectares ("ha") in size. It is
located less than 10 kilometres ("km") east of the Billy Diamond Highway, and is approximately 150km
north of Matagami, a small town that contains the closest rail link to much of James Bay (Figure 1). The
Property lies within the greater Nemaska Community lands of the Eeyou Itschee Territory, James Bay,
Quebec.
The Property is situated along the Frotet Evans Greenstone Belt, 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 130km and 180km away, respectively.
During 2023 and 2024 the Property vendors discovered the lithium zone by collecting 28 rock samples,
21 of which returned over 1.0% Li
2
O (Figure 2). The results are within a 1.2km by 1.5km area, clustered
into six separate mineralized zones.
In the fall of 2023, the Property vendors drilled six drill holes, totaling 1,287 metres ("m"), at one of the six
mineralized zones. The drilling confirmed a strike length of approximately 220m and open along strike in
both directions and down-dip. The first three drill holes were drilled towards the south and are interpreted
to have undercut the mineralized pegmatite that is also dipping to the south, thus did not intersect the
large outcrops that were observed from surface.
Limited follow up drilling successfully intersected multiple, wide spodumene-bearing pegmatites from
surface (mapped in Figure 2, with complete results in Table 2). Including:
CS-23-05 consisting of 5 separate pegmatite intervals with a cumulative
115.4m at 1.21% Li
2
O
.
CS-23-06 consisting of 3 separate pegmatite intervals with a cumulative
57.8m at 1.27% Li
2
O
.
CS-24-04 consisting of a continuous interval of
31.5m at 1.30% Li
2
O.
Due to drill rig issues, drill hole CS-23-05 ended in mineralized pegmatite and was followed up with hole
CS-23-06 at a shallower dip (Figure 4). The result of the two holes from the same drill pad infers that the
pegmatite is dipping to the south, and the intervals intersected are possibly the near true thickness of the
mineralized pegmatite. Additional drilling will need to be conducted to confirm this theory.
The remainder of the Property is largely unexplored for its lithium potential and there may be more than
one prospective greenstone belt on the Property (Figure 3). The Northern, Central and Southern lithium
trends are each approximately 21, 13 and 3.5km long, respectively.
The Company is well funded and immediate plans are to conduct property-wide sampling/mapping,
airborne magnetic surveying and LiDAR surveying on the Property. Follow-up drilling at the previously
sampled area will also be a high priority focus of work.
Figure 1. Cisco Property - Regional Location
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Figure 2. Cisco Property - Exploration Summary
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Figure 3. Cisco Property Claim Block Map
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Figure 4. Cross section of drill holes CS-23-05 and 06
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Table 1. Summary of 2023 Drilling
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Table 2. Mineralized intercept summary for 2023 drill holes
To view an enhanced version of this graphic, please visit:
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Option Terms:
Subject to TSX Venture Exchange (the "
TSXV
") acceptance, the Company will acquire an Option to
acquire the Cisco Project for total consideration of an aggregate of 60,000,000 common shares of the
Company (the "
Consideration Shares
"), $2,400,000 (the "
Cash Consideration
") and $12,000,000 in
exploration expenditures. The following are the terms for each of the three mineral claim groups being
acquired:
Cisco Claim Group
Pursuant to the terms of an option agreement between the Company and 9490-1626 Quebec Inc. (the
"
Cisco Vendor
") dated February 28, 2024 (the "
Cisco Agreement
"), in order for the Company to
exercise the option to acquire a 100% interest in 121 mineral claims (the "
Cisco Claims
") from the
Cisco Vendor, the Company must pay to the Cisco Vendor total consideration of an aggregate of
40,000,000 Common Shares, $2,000,000 and $12,000,000 in exploration expenditures as follows:
Cash Consideration
Share Consideration
Exploration Expenditures
Closing date of the Cisco Agreement
$1,100,000
10,000,000
Year 1
$500,000
10,000,000
$1,000,000
Year 2
$400,000
10,000,000
$2,500,000
Year 3
-
10,000,000
$3,500,000
Year 4
-
-
$5,000,000
Total
$2,000,000
40,000,000
$12,000,000
Upon satisfaction of the above payments and expenditures, the Company will earn a 100% interest in the
Cisco Claims.
The Cisco Vendor will retain a 4% gross metals returns royalty ("GMR") on the Cisco Claims (the "
Cisco
GMR
"), of which up to 3% of the Cisco GMR can be purchased by the Company at any time prior to
commercial production for $1,500,000 on the first 1%, $3,000,000 on the next 1% and a right of first offer
on the next 1% at a price to be determined based on fair market value of the Cisco GMR at the time of
such purchase.
The foregoing Cisco GMR purchase payments may be satisfied in either cash or
Common Shares, at the election of the Company.
The Cisco Vendor will also be paid a cash bonus of
$2,500,000 on the completion and delivery of an initial mineral resource calculation report, prepared in
accordance with National Instrument 43-101 -
Standards of Disclosure for Mineral Projects
, on the
Cisco Claims demonstrating an inferred resource (or higher category) of at least 25 million tonnes
grading over 1% Li2O.
Broadback Claims
Pursuant to the terms of an option agreement between the Company, 9219-8845 Quebec Inc ("
9219
"),
Steven Labranche and Anna-Rosa Giglio (the "
Broadback Vendors
") dated February 28, 2024 (the
"
Broadback Agreement
"), in order for the Company to exercise the option to acquire a 100% interest
in 24 mineral claims (the "
Broadback Claims
") from the Broadback Vendors, the Company must pay to
the Broadback Vendors total consideration of an aggregate of 10,000,000 Common Shares and
$200,000 as follows:
Cash Consideration
Share Consideration
Closing date of the Broadback Agreement
$200,000
5,000,000
Year 1
-
5,000,000
Total
$200,000
10,000,000
Upon satisfaction of the above payments and expenditures, the Company will earn a 100% interest in the
Broadback Claims.
9219 will be granted a 3% gross metals returns royalty on the Broadback Claims (the "
Broadback
GMR
"), of which up to 2% of the Broadback GMR can be repurchased by the Company at any time prior
to commercial production for $1,000,000 for the first 1% and $2,000,000 for the next 1%. The foregoing
Broadback GMR purchase payments may be satisfied in either cash or Common Shares, at the election
of the Company.
Ouagama Claims
Pursuant to the terms of an option agreement between the Company, 9219, Steven Labranche, Anna-
Rosa Giglio and Trent Potts (the "
Ouagama Vendors
") dated February 28, 2024 (the "
Ouagama
Agreement
"), in order for the Company to exercise the option to acquire a 100% interest in 77 mineral
claims (the "
Ouagama Claims
") from the Ouagama Vendors, the Company must pay to the Ouagama
Vendors total consideration of an aggregate of 10,000,000 Common Shares and $200,000 as follows:
Cash Consideration
Share Consideration
Closing date of the Ouagama Agreement
$200,000
5,000,000
Year 1
-
5,000,000
Total
$200,000
10,000,000
Upon satisfaction of the above payments and expenditures, the Company will earn a 100% interest in the
Ouagama Claims.
The Ouagama Vendors will be granted a 3% gross metals returns royalty on the Ouagama Claims (the
"
Ouagama GMR
") of which up to 2% of the Ouagama GMR can be repurchased by the Company at any
time prior to commercial production for $1,000,000 for the first 1% and $2,000,000 for the second 1%.
The foregoing Ouagama GMR purchase payments may be satisfied in either cash or Common Shares,
at the election of the Company.
No finder's fee is payable in connection with the Option. The Option remains subject to TSXV
acceptance.
Undertaking
The Cisco Vendors, Broadback Vendors and Ouagama Vendors are expected to severally undertake to
not acquire or hold, together with any person acting jointly or in concert with such vendor, more than 9.9%
of the Common Shares outstanding immediately after giving effect to such receipt of Consideration
Shares. If any issuance of Consideration Shares will result in a vendor owning more than 9.9% of the
Common Shares, such vendor will defer such issuance until such time his or her beneficial ownership of
the Company is equal to or less than 9.9% of the Common Shares.
Qualified Person
Neil McCallum, B.Sc., P.Geol, is a registered permit holder with the Ordre des Géologues du Québec
and Qualified Person as defined by National Instrument 43-101 -
Standards of Disclosure for Mineral
Projects
, is responsible for the scientific and technical data presented herein and has reviewed and
approved this news release. Mr. McCallum is a director and VP Exploration of Q2.
The drilling and sampling performed by the Property vendors was supervised by Jeannot Théberge, a
registered permit holder with the Ordre des Géologues du Québec. Mr. Théberge is a shareholder of the
Cisco Vendor and as such, is not independent.
Quality Control
The samples were sent to Techni-Lab Abitibi Inc. (a division of Activation Laboratories Ltd.), whereupon
the samples were tested for lithium with the Actlabs analytical Code 8 Sodium Peroxide Fusion - ICP-
OES/ICP-MS Finish - Lithium Ore analysis package with a sodium peroxide fusion digestion and
ICP/OES analysis. Sodium peroxide fusion is considered as a total digestion method for lithium assays.
Actlabs performs its own internal QAQC checks and the Property Vendors included sufficient QAQC