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Anthony Molybdenum Project

Highlights

Anthony is an advanced-stage pure Mo deposit located in a Tier 1 jurisdiction and is yet to be fully exploited.
Hellman & Schofield Pty Ltd produced the Mineral Resource Estimate (MRE) in 2012 for the Anthony Mo deposit that was publicly reported under JORC 2004 on 15 March 2012 by Zamia Metals Limited.
The Inferred Resource for the primary (sulphide) zone stands at 112 million lb of contained Mo using a 400 ppm Mo cut-off grade.
The Inferred Resources for the oxide and partial oxide zones are 20 and 6 million lb, respectively, of contained Mo using a 400 ppm Mo cut-off grade.
At a cut-off grade of 600 ppm Mo, the Inferred Resource for the primary (sulphide) zone includes 20mt at 800 ppm Mo for 35m lb Mo.
QX is exceptionally well-placed to benefit from a strong Mo price which has increased more than 100% over 12 months to ~US$40 per kg based on daily metal price.
A comprehensive work program has commenced which entails:
- desktop data processing of all historical drill results and other information, review of all the drill core which has been located and inspected by QX’s team;
- updating the current MRE so it is compliant with the 2012 JORC code;
- further metallurgical review and test work; and
- further beneficiation review and test work.

Molybdenum Uses

It is used with steel to form ultra-high strength steel. Alloys of this type can withstand pressure of up to 300,000 pounds per square inch;
It also has a high melting point, and it makes the steel stronger at higher temperatures. Molybdenum can withstand extreme temperatures without significantly expanding or softening, making it useful in environments of intense heat, including military armor, aircraft parts, electrical contacts, industrial motors, and supports for filaments in light bulbs;
The metal is also used extensively in the nuclear power sector, and it is also used to make aircraft and missile parts;
Most high-strength steel alloys contain 0.25% to 8% molybdenum. Even in these small portions, more than 43,000 tonnes of molybdenum are used each year in stainless steels, tool steels, cast irons, and high-temperature superalloys;
When it is alloyed with nickel, it also forms an alloy that’s highly resistant to both heat and corrosion. This makes it highly valuable in the chemical industry;
When paired with disulphide, it becomes a compound that is used as a lubricant for high temperatures;
Paired with trioxide (O3), it forms another compound that is used to attach enamels to metals.
It can also be used as a catalyst to refine petroleum.

Cut-off Grade

Sulphide Resource

Transition Resource (partial oxide)

Oxide Resource

Total Resource

Mo [ppm]

Mt

Mo [ppm]

Contained Mo [Mlb]

Mt

Mo [ppm]

Contained Mo [Mlb]

Mt

Mo [ppm]

Contained Mo [Mlb]

Mt

Mo [ppm]

Contained Mo [Mlb]

600

20

800

36

1.3

730

2.1

3.1

660

4.5

25

780

42

400

91

560

112

5.2

540

6.2

17

510

20

114

550

137

200

250

390

215

13

400

11

53

370

43

318

390

269

Table 1: March 2012 Inferred Resource estimate for the sulphide, transition (partial oxide) and oxide zones of the deposit, prepared by H & S. JORC Code 2004

This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

(Note: Tonnes and grades have been rounded and rounding errors may occur. Results above include cut-off grades higher than 500 ppm Mo are subject to some uncertainty).

Image 1: Coarse molybdenite in Hole RCD70 (Zamia Metals Limited, June 2011)

Image 2: Anthony Molybdenum project – East-west drill section at 7 532 800N (Zamia Metals Limited, June 2011)

Image 3: Anthony Molybdenum project location

Image 4: Overview of deposit showing historical drill locations and high-grade (>500 ppm) Mo zone (Zamia Metals Limited, June 2011)