QMC QUANTUM MINERA COM NPV (OTCMKTS:QMCQF) Is Today's Lithium Focus

Today, we are presenting a new business profile that has drawn the attention of the market recently.It is called QMC QUANTUM MINERA COM NPV (OTCMKTS:QMCQF), which focuses on mineral exploration projects. At the moment, it holds interests in three projects: Namew Lake property, the Carrot River project, and the Cat Lake lithium project.The most interesting is that the share price has gone off recently. From trading close to $0.15, the share price has gone up to $0.30 delivering more than 100% stock returns to those who were able to assess the recent news on this name correctly.Most importantly, the amount of shares that changed hands was large, which, we believe, shows that the market interest on this particular stock is high. The trading volume some days was close to 2 million. Have a look at it in the following stock chart: 1 month chart for QMCQFBusinessThe company explains on its corporate website that it has acquired "high quality Li-Ag-Au-Ni-Cu-Zn prospects in Manitoba, Canada." For those who don't know it, this is one of the most productive mining regions in the country. We believe that the most interesting project is the Cat Lake Lithium property, previously called Irgon Mine: Lithium MineWhy?As mentioned on the company website, this project contains a Rare-metal (Li-Ta-Cs) deposit, which is estimated to have a resource of more than 1.2 million tonnes of spodumene-bearing pegmatite grading 1.5% Li2 O.Lithium mining projects seem to be the latest gold fever on Wall Street. The reason is that the batteries used to manufacture electric vehicles, laptops and mobile phones among other devices need lithium. Hence, mining stocks with lithium resources are delivering outstanding returns to investors. If you want more information about this market opportunity, it may be a good idea to check the articles written in Insider Financial. It will help understand the market reaction seen on QMCQF.What's our take on QMCQF's lithium resources?We had a look at the company materials delivered to the market and found the following information about this project:

"The results, although considered by QMC to be historic, indicated contents of 40-53% spodumene for samples, and 7.44% Li20 contained within the spodumene mineralization. Between 1953-1954 the Lithium Corporation of Canada Limited drilled 25 holes into the Irgon Dike and reported a historical resource estimate of 1.2 million tons grading 1.51% Li20 over a strike length of 365 meters and to a depth of 213 meters." Source

Additionally, the following information was said about the plant installed in the 1950s:

"A complete mining plant was installed on site designed to process 500 tons of ore per day and in addition, a three compartment shaft sunk to a depth of 74 meters. On the 61 metre level, lateral development was extended off the shaft for a total of 366 meters of drifting; from which six crosscuts transected the dike. The work was suspended in 1957, awaiting a more favourable market for lithium oxides and at this point the mine buildings were removed." Source

We believe that the project is promising, but needs more work to be done. The company owns information from a 1956 Assessment Report by Bruce Bannatyne for the Lithium Corporation of Canada Ltd. Additionally, these are indicated resources, but market participants will need measured resources: Type of ResourcesOnce the resources are well defined and are communicated to the market, the share price could spike up as a result. Thus, we encourage readers to be alert on it.Recent DevelopmentsOn September 7, 2017, the company provided some information regarding the lithium project. In the press release, it noted that some assessment work program was conducted by D. Fogwill, P. Geo. on behalf of 101162742 Saskatchewan Ltd in 2011. Rock grab samples were obtained from the Irgon Dike and other potentially rare element-bearing granitic pegmatites identified within the Irgon Mine property. The company is assessing the results of this study at the moment.Additionally, in the same press release, it was noted that in the work performed in 1950s, the metallurgical tests reported 87% recovery from a concentrate averaging 5.9% Li2O. These are promising estimates, but a detailed drill program will be required to update this historical resource to current NI 43-101 standards. We need to be alert, as the results from this news tests could push the share price higher.Furthermore, on September 19, 2017, the market got to know that the company received work permit from the Government of Manitoba for the company’s Irgon Lithium Mine property. In our opinion, the market pushed up the share price as a result. Additionally, it was noted that the company "has now mobilized the work crew and equipment to the work site." The initial plan is designed to strip the overburden off the dike, thereby exposing it completely along strike:

"Sampling across the dike, at intervals along the entire strike length of the dike to extend the known mineralized zone and confirm previous grab sampling, trenching and drilling results." Source

ConclusionCurrently trading with a market cap of $15 million, QMCQF is an exciting story among small caps. With CAD$2.6 million in exploration and evaluation assets and only CAD$1.9 million in cash, we appreciate the positive book value per share.Furthermore, we believe that the company will need to receive financing, which, in our opinion, may not be an issue given the state of the lithium industry at the moment. Overall, lithium remains a hot sector for investors and QMCQF is one to play it.We will be updating our subscribers as soon as we know more. For the latest updates on QMCQF, sign up below!Image courtesy of UC San Diego via FlickrDisclosure: We have no position in QMCQF and have not been compensated for this article.