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 249.6km2 in the Julia Creek area of North Western Queensland, Australia, and in October 2019, the Company announced a significant Resource Upgrade, which resulted in a 62% increase in size of the Julia Creek Vanadium JORC Resource.  Following the Resource Upgrade, the Julia Creek Project now holds a 2,760Mt Vanadium JORC Resource with an average V2O5 content of 0.30%, with 220Mt in the Indicated category and 2,540Mt in the Inferred category

QEM’s Julia Creek Project is now one of the single largest Vanadium deposit in the world and also contains 783MMBBls of Oil in the 3C category.

The Julia Creek Project is located less than 16km east of the township of Julia Creek and is intersected by the main infrastructure corridor of the Flinders Highway and the Great Northern Railway connecting Mt. Isa to Townsville.

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 to 249.6 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 2.76Bt 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 249.6km2 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:

Table 1: Summary of JORC Mineral Resource Estimate

Resource ClassStrat UnitMass (Mt)Average
Thickness (m)
Insitu Density
(gm/cc)
V2O5 (wt%)Cu (ppm)Mo (ppm)Ni (ppm)Zn (ppm)AI (ppm)
IndicatedCQLA733.162.270.251551381237804752
CQLB672.972.240.281821681428905706
OSU401.942.080.33223153191108755317
OSL381.872.110.32199149184101555009
Sub-total220
InferredCQLA6872.572.280.231541391218192854
CQLB8743.332.150.3822022120111845323
OSU5042.012.110.30232147188114862477
OSL4811.982.130.29212134171105860316
Sub-total2540
Total27602.180.30201166170104326100

Note: (1). The estimate uses a minimum cut-off of 0.2% V2O5 for the oil shale units, and minimum cut-off of 0.15% V2O5 for the Coquina units.  (2). The total resource tonnage reported is rounded to reflect the relative uncertainty in the estimate categories and component horizons may not sum correctly.

 

Table 2: Summary of SPE-PRMS Contingent Oil Resource

Strat UnitMass (Mt)Average
Thickness
(m)
Oil Yield
(L/tonne)
MMBarrels
(insitu-PIIP)
MMBarrels 3C
OSL17015.9344446401
OSU5442.0172231208
CQL5181.9763193174
Total276053870783

Note: (1). The total resource tonnage reported is rounded to reflect the relative uncertainty in the estimate and component horizons may not sum correctly.

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 tenements to a total size of 249.6 km2.

Significant JORC Resource Upgrade resulted in a 62% increase in size of the Julia Creek Vanadium JORC Resource with the project now holding a2,760Mt Vanadium JORC Resource with an average V2O5 content of 0.30%

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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