The Julia Creek Vanadium / Oil Shale Project

LOCATION:

Julia Creek, Queensland, Australia

MAJOR RESOURCES:

Vanadium
Oil Shale

The Julia Creek Vanadium / Oil Shale Project

QEM Limited’s flagship Julia Creek vanadium / oil shale project is a unique world class resource with the potential to deliver innovative energy solutions, through the production of energy fuels and vanadium pentoxide

The Julia Creek Project covers a total of 496km2 in the Julia Creek area of North Western Queensland, Australia, and this globally significant JORC (2012) Inferred Resource of 1,700 Mt @ 0.34% V2O5 is the second largest ASX listed vanadium resource.

In 2015, QEM conducted an initial exploration program which resulted in a maiden JORC Inferred Resource of 1,326 million tonnes, with an average yield of 0.36% vanadium pentoxide content, and an average oil content of 64.1l/t within the oil shale unit. In addition, other minor metals are also available including; nickel, copper, molybdenum and zinc.

In March 2018, the resource was upgraded to the JORC Inferred resource by 35% to 1,700 million tonnes, with an average yield of 0.34% vanadium pentoxide content. Through the various studies, the Company has received a strong indication that there is a significant opportunity for the development of a world class vanadium / oil shale mine.

PROJECT INFORMATION

The QEM Limited Julia Creek vanadium / oil shale project consists of a total of four exploration permits EPM 26429, EPM 25681, EPM 25662 and the most recent addition of EPM 27057, which was granted in April 2019, increasing the total tenement size by 320km2, from 176km2, to a total of 496 km2 (see ASX Announcement dated 2 May 2019). Historic drill holes within the new tenement area show that the stratigraphic vanadium bearing oil shale units of the Toolebuc Formation, as defined in QEM’s current 1.7Bt JORC resource, continue into the new tenement EPM 27057.

Figure 1: Tenement Map detailing QEM’s tenements for the Julia Creek Project

LOCATION AND INFRASTRUCTURE

QEM Limited’s Flagship Julia Creek Project, covers a total of 496km2 in the Julia Creek area of North Western Queensland, Australia. The tenements form part of the vast Toolebuc Formation, which is recognised as one of the largest deposits of vanadium and oil shale in the world and located less than 16km east of the township of Julia Creek. In close proximity to all major infrastructure and services, the project is intersected by the main infrastructure corridor of the Flinders Highway and the Great Northern Railway, connecting Mt. Isa to Townsville.

RESOURCE OVERVIEW

The below tables show a resource overview of the Julia Creek vanadium / oil shale project:

Summary of Mineral Resources as at 31 May 2018

Resource ClassStrat UnitMass (Mt)Average Thickness (m)Insitu Density (gm/cc)V2O5 (wt%)Cu (ppm)Mo (ppm)Ni (ppm)Zn (ppm)
InferredCQL8113.392.120.382422472261329
OSU4541.772.100.312411461931221
OSL4451.812.130.292231271701098
Total17002.120.342371902031241

Note: The total resource tonnage reported is rounded to reflect the relative uncertainty in the estimate and component horizons may not sum correctly.

Summary of Contingent Oil Shale Resources as at 31 May 2018

Resource ClassStrat UnitMass (Mt)Average Thickness (m)Total Moisture wt%Oil Yield (L/Tonne)Oil Yield LT0MMMBarrels (insitu-PIIP)MMBarrels 3C
ContingentCQL8113.3986263298268
OSU4541.77107274191172
OSL4451.81106365165149
Total170096467654589

Notes:
The estimate uses a minimum cut-off oil yield of 40 L/tonne, rounded down to nearest million tonnes.
The total resource tonnage reported is rounded to reflect the relative uncertainty in the estimate and component horizons may not sum correctly.
There are no 1C or 2C Resources as the current points of observation (drill hole spacing) of the oil shale grade is insufficient to place reliable confidence on both grade and thickness continuity required for 1C or 2C Resources.

PROGRESS TO DATE

QEM has made significant progress on developing the project to date.

2014

Initial techno-economic report completed.

2015

Initial exploration complete with large JORC (2012) inferred resource target identified.

Positive metallurgy showing viability of project using known processes for V2O5 extraction.

2016

Scoping Study for vanadium only completed.

Initial financial modelling complete, showing strong potential for economic viability.

Positive test results using supercritical water for hydrocarbon production from oil shale (ATSE Grant).

2017

Project Implementation Study & Process Design Report.

Acquisition of EPM 26429.

Addition of Daniel Harris to team as Chief Advisor.

2018

Upgraded size of JORC Inferred Resource by 35% to 1,700 million tonnes with
high grade target zones at up to 0.74% V205.

Daniel Harris joins QEM board as Non-Executive Director.

QEM is admitted to the official ASX list and commences trading.

MOU signed with Petroteq Energy Inc USA.

2019

QEM receives positive results from preliminary testing for oil extraction.

Additional permit granted for EPM 27057 increasing the total tenement size of the Julia
Creek project total tenement size by 320km2, from 176km2 to a total of 496 km2.

NEXT STEPS

The below outlines the immediate strategy which QEM aims to pursue to progress its Julia Creek vanadium / oil shale project

Stage 2 Exploration

Further 3000m of drilling to upgrade resource from Inferred to JORC indicated/Measured;

Increase resource base with inclusion of EPM 26429 and EPM 27057;

Landowner & stakeholder engagement;

Complete Pre-Feasibility
Studies

Advance metallurgical & mineralogical test work;

Advance research into processing options & testing;

Testing of oil shale at US labs;

Petrology analysis;

On-site and off-site infrastructure studies;

Environmental monitoring & EIA submission;

Geotechnical and hydrological assessments;

Upgrade mine design & modelling;

Preliminary Civil Engineering studies;

Processing engineering design;

Further develop off-take interest, with potential for long term agreements in discussion;

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