Research piece update from Morgans.EQ Resources – ASX:EQR Mkt...

Research piece update from Morgans..13ps

The Queensland Critical Minerals and Battery Technology Fund will provide EQR’s Mt Carbine Tungsten Mine with an up to million 3-year loan facility.

· Tranche A: m will assist in doubling processing capacity and commencing underground drill testing.

· Tranche B: m will continue underground drill testing and start underground trial mining.

· The lightly explored underground resource, accessible from the existing open pit, using a 1980s decline, offers higher grades and considerable resource upside.

· Expansion program to assist securing global supply of the critical mineral ahead of forecast global shortages and as prices started to increase (+10% quarter-on-quarter).

Mt Carbine – one of EQR’s two established tungsten concentrate producers

QIC’s State Chief Investment Officer Allison Hill commented: Securing additional tungsten mineralisation will strengthen Queensland’s position as a significant contributor to global critical minerals supply chains. There are relatively few mines globally in a position to fill anticipated supply-demand gaps for tungsten as existing outputs are challenged and demand for clean energy technologies grows.

Saloro – Spain

EQR has installed two new generation XRT Sorters at its recently acquired Saloro tungsten mine in Barruecopardo, Spain. This mine is operating in line with the relevant regulations, and doesn’t have the problems which those looking to develop a mine in Spain may face in this very bureaucratic jurisdiction.

The previous process setup discarded ore with sizing >6mm which was considered uneconomic for further processing. The XRT Sorting Plant is now treating 100% of this previously discarded stream, achieving a >25- times upgrade to produce a sorter concentrate with grades between 1.5-2% WO₃.

That is expected to add an additional US-5M to Saloro revenue per year at minimal (no?) extra cost.

1		EQ Resources – ASX:EQR Mkt Cap. @ A4.9cps: A.1M Valuation & TP - A
2	EQ Resources – ASX:EQR Mkt Cap. @ A4.9cps: A$91.1M Valuation & TP - A$0.13ps The Queensland Critical Minerals and Battery Technology Fund will provide EQR’s Mt Carbine Tungsten Mine with an up to $20 million 3-year loan facility. · Tranche A: $12m will assist in doubling processing capacity and commencing underground drill testing. · Tranche B: $8m will continue underground drill testing and start underground trial mining. · The lightly explored underground resource, accessible from the existing open pit, using a 1980s decline, offers higher grades and considerable resource upside. · Expansion program to assist securing global supply of the critical mineral ahead of forecast global shortages and as prices started to increase (+10% quarter-on-quarter). Mt Carbine – one of EQR’s two established tungsten concentrate producers QIC’s State Chief Investment Officer Allison Hill commented: Securing additional tungsten mineralisation will strengthen Queensland’s position as a significant contributor to global critical minerals supply chains. There are relatively few mines globally in a position to fill anticipated supply-demand gaps for tungsten as existing outputs are challenged and demand for clean energy technologies grows. Saloro – Spain EQR has installed two new generation XRT Sorters at its recently acquired Saloro tungsten mine in Barruecopardo, Spain. This mine is operating in line with the relevant regulations, and doesn’t have the problems which those looking to develop a mine in Spain may face in this very bureaucratic jurisdiction. The previous process setup discarded ore with sizing >6mm which was considered uneconomic for further processing. The XRT Sorting Plant is now treating 100% of this previously discarded stream, achieving a >25- times upgrade to produce a sorter concentrate with grades between 1.5-2% WO3. That is expected to add an additional US$4-5M to Saloro revenue per year at minimal (no?) extra cost.