QX: QX Resources (ASX: QXR) on right track in its quest for Australian gold

Summary QX Resources is focussed on progressing developments at its Queensland's exploration assets. The Company in mid-October executed an earn-in agreement with Zamia leading to 50% ownership in the Zamia Resources Project. A detailed infill soil sampling program over the Big Red area of the Disney tenement returned an expanded and apparent gold anomaly. ASX-listed mineral exploration company QX Resources Limited (ASX: QXR), formerly known as Hipo Resources Limited, continues to push forward developments at its lately acquired Queensland resources, that has the potential to offer signal value to the Company. The binding option agreement with Zamia Resources Pty Ltd (Zamia Resources), which is a wholly-owned subsidiary of Zamia Metals Limited (Zamia), has been paving the way for QX to leverage high growth opportunities offered by the project. Notably, Zamia's four exploration licences covering ~115km2 in the Central Queensland goldfields, house two open-pit historical gold mines as well as multiple unexplored targets. Kalkine Image (Data Source: 30 September 2020) Furthermore, 2020 proved to a harbinger of the growing market appetite for the yellow metal investment as gold prices displayed an impeccable momentum. The perks of the lucrative gold landscape and the recent impressive trends posted by ASX-listed gold stocks have been remarkable. They together highlight that QX resources is well-positioned to capitalise on extensive growth opportunities in the market. ALSO READ: Australian Gold-Backed ETFs - Massive Capital Influx, Impeccable Performance, And Record Values Let us explore some of the key developments related to the project, reflecting the Company's focus on advancing its Queensland-based assets. Agreement with Zamia QX Resources owns a 50% interest in the Zamia Resources Project while it has the right to earn up to 90% ownership. The project is strategically located within the Drummond Basin in Central Queensland, which boasts of >6.5moz gold endowment as well as a long history of mining. The Company, in mid-October, executed an earn-in agreement with Zamia, replacing Heads of Agreement which was previously executed in July. Under the Earn-in Agreement, QX acquired 50% interest in Zamia Resources through the issue of 40 million ordinary shares (subject to a 12-month voluntary escrow from the date of issue). QX Resources would advance to 70% ownership of Zamia resources by spending $0.5 million on project development within six months from 1 October 2020. Further expenditure of $1 million on various exploration and project development works would earn the Company a 90% stake in Zamia Resources. Queensland Exploration Program The vastly under-explored and under-developed projects with compelling geology are characterised by the two mines - Belyando and Lucky Break, which together historically produced ~93,000 oz Au from shallow open-cut operations in late 1980's/early 1990s. With the acquisition of the tenements, QX Resources kickstarted a detailed infill soil sampling program of more than 300 samples over the Disney tenement and the Belyando tenement along the trend of previous soil anomalies. Sampling program undertaken by QX Resources builds on previous soil sample grids and costeaning undertaken by Zamia and BMA. Robust Gold Anomaly Defined An expanded clear gold anomaly was returned with the completion of the detailed infill soil sampling program over the Big Red area of the Disney tenement. Meanwhile, a 675m mineralised trend southwest of the Big Red mineralisation zone, was dubbed as Red Dog. Figure 1 Big Red and Red Dog Soils gold anomaly Kalkine Image (Data Source: 10 November 2020) The maximum tenement strike length potential of 2.1km is suggested by Red Dog/Big Red Magnetic destruction zone. Previous observations concerning the potential of the project are vastly bolstered by the Red Dog gold anomaly. Renewal of Lucky Break Exploration Licence The 2576-hectare exploration permit (EPM 14790) has been renewed for a further five years commencing 12 January 2021. Zamia resources received the exploration permit from the Queensland Department of Natural Resources and would include the highly prospective Lucky Break Mine. Significantly, the Lucky Break Mine along with the surrounding area is a priority target for the Company. QX is now defining drill program for confirming historical assay results and testing some potential extensions to the mineralisation along strike and below the Lucky Break Mine pit floor, having a depth of less than ~50 metres. QXR stock traded at $0.015 on 8 December 2020.