QEM Releases Activity Report For June Quarter, Excellent Progress Made On Commercial Extraction Technology
Summary
Oil extraction results using a solvent consistently achieved oil yields over 175% of a Modified Fischer Assay
Australia taking lessons from the pandemic, a sponsored boost to critical minerals domestic supply chain may be anticipated
Received R&D cashback of $205,000 to be used towards general working capital
QEM is focussing on the application of effective extraction technology at Julia Creek project
QEM Limited (ASX: QEM), the innovative energy solutions company, released the activities report for the June quarter. During the quarter, the explorer successfully navigated the pandemic environment and progressed on the flagship Julia Creek vanadium and oil shale project in Queensland.
Oil Extraction Test Results in Consistent Oil Yields
A review of the processing routes at the Julia Creek project commenced during the March quarter, HRL Technology Group Pty Ltd was engaged to conduct the oil shale extraction tests. Majority of the oil extraction testing was conducted during the June quarter with the outcomes of the test released recently in July.
The oil yields stood consistently over 175% of Modified Fischer Assay oil yields under varying test conditions. The increase in oil yields is attributable to the addition of the hydrocarbon solvent extracted directly from the oil stream from the Julia Creek project enhancing the cost effectiveness of the solvent.
The test work for Vanadium extraction rates within the shale segments of the Julia Creek project was also conducted during the June quarter by HRL Technology Group Pty Ltd. The results for the test work are anticipated in the present quarter.
As per the company, the excellent extraction test results will form the foundation for further extraction and resource quality optimisation tests during the present quarter. QEM has also collaborated with E2C Advisory Pty Ltd to advance on the engineering and economic activities developing and evaluating the extraction process, including assessment of economic viability of the Vanadium and oil shale project.
Joint efforts of the Government & QEM to boost development of innovative domestic sources of energy
QEM also reported no material impacts on its activities due to the COVID-19 pandemic. QEM is working in close co-ordination with the Queensland Resource Council (QRC), prestigious Industry experts and the local and state government to mitigate the impact of the pandemic.
QEM has already incorporated the state and national protocols complying to all regulatory requirements into its Health and Safety management system.
QEM believes that the pandemic has emphasised the requirement of strong economic supply chains, especially in matters relating to Australia’s energy supply or overseas sourced key materials. The company’s beliefs were further strengthened by the endorsement of a National Critical Minerals Development Roadmap by the COAG Resources Ministers in efforts to support Australia’s domestic critical minerals supply chain.
As per QEM, initiatives such as these may trigger the domestic production growth of critical minerals benefiting the company in the post pandemic times. During the quarter, QEM received a $50,000 cashflow boost rebate as part of the Australian Government’s response to COVID-19.
QEM also received the research and development (R&D) cashback of over $205,000 from the Australian Taxation Office (ATO). The cashback recognises the innovative initiations take by QEM on advancing the Julia Creek project. QEM plans to utilise the refund received towards the general work capital.
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