The Next Nemaska?
World-Class Drill Results from
One of the World's Best Performing Lithium Stocks
Picture Source: Brent Baldwin,
author and keynote speaker ThinkWorldClass.com
Considering that lithium explorer Far Resources' stock price has
been on an impressive run lately, one may wonder where this junior
is heading? Considering today's landmark announcement of new drill results, Far
Resources could very well be on its way to become a senior within
the next years! Today´s announced new set of drill results from
Dyke #1 at the Zoro Lithium Project in Manitoba, Canada, underpin
the argument of a world-class lithium project:
• 1.43% Li2O over 20.6 m
including 2.19% Li2O over 4 m and 3.12%
Li2O over 1 m in Hole DDHFAR17-18.
These exceptionally high-grade lithium intercepts come along with
strongly enriched tantalum (60-137 ppm) and niobium (142-409 ppm),
potentially highly valuable by-products. In early November, Far
Resources re-assayed some drill core and also found elevated
tantalum grades with up to 927 ppm.
• 1.15% Li2O over 12.4
m in Hole DDHFAR17-19, along with 45 ppm tantalum and 155
ppm niobium.
• This drilling was performed in areas of Dyke #1, where no
previous modern drilling had taken place.
• As announced today, a winter drill program is planned to
assess deeper levels (>150 m) of Dyke #1 for the extension of
high-grade lithium spodumene and to test historic high-grade
lithium drill intersections and recent assay results from trench
and outcrop sampling at Dykes #5 and #7.
• Field crews are currently expanding the prospecting and soil
geochemical surveys to find new pegmatite dykes on the recently
enlarged property.
Considering that Canada's top lithium projects have average
resource grades which are similar to today's and past drill
results, shareholders are eagerly waiting for the first resource
estimate on Dyke #1 (and as the name suggests, there are many more
lithium-bearing pegmatite dykes on the Zoro Property waiting to get
drilled in order to further expand total resources, not to speak of
the great potential of many more dykes hidden below overburden
waiting to get discovered with the ongoing exploration
programs).
With a current market capitalization of $90 million CAD,
Far Resources is simply catching up to its peers:
Whabouchi Lithium Deposit in Québec, Canada
Nemaska Lithium Inc.(TSX.V: NMX; $1.93 CAD;
market capitalization: $689 million CAD)
Measured + Indicated
Resource:28 million t @ 1.57 % Li2O
Inferred Resource:4.7 million t @ 1.51% Li2O
(January 2014 In-Pit Mineral Resource Estimate; the project is
under development with full commercial production estimated to
start in 2018)
Lithium Quebec Deposit in Québec, Canada
North American Lithium Inc. (private
company)
Measured & Indicated Resource:
33.2 million t @ 1.19% Li2O
Inferred Resource:13.8 million t @ 1.21% Li2O
(December 2011 Mineral Resource Estimate; the project is under
development with full commercial production estimated to start in
2018)
Rose Lithium-Tantalum Deposit in Québec, Canada
Critical Elements Corp. (TSX.V: CRE; $1.58 CAD;
market capitalization: $239 million CAD)
Indicated Resource: 31.9
million t @ 0.93% Li2O and 148 ppm
Ta2O5
Inferred Resource:2.8 million t @ 0.82% Li2O and 145 ppm Ta2O5
(August 2017 Mineral Resource Estimate)
PAK Lithium Deposit in Ontario, Canada
Frontier Lithium Inc. (TSX.V: FL; $0.67 CAD;
market capitalization: $136 million CAD)
Measured & Indicated Resource:
7.9 million t @ 1.58% Li2O, 104 ppm
Ta2O5, 0.04%
Cs20 and 0.31% Rb20
Inferred Resource:0.3 million t @ 1.2% Li2O, 103ppm Ta2O5, 0.06% Cs20 and 0.36%
Rb20
(May 2016 Mineral Resource Estimate; Note: "Access to the
Property is available year-round by chartered ski or float equipped
aircraft from Red Lake, Ontario (175 km) to the south of Pakeagama
Lake. The project is located in a relatively isolated area of
northwestern Ontario where infrastructure is absent except for a
winter road, which services the communities of Deer Lake, Sandy
Lake, and North Spirit Lake." Source: Frontrier Lithium Inc.
Technical Report May 2016)
The Zoro Premium
There are several reasons why Far Resources' Zoro
Lithium Project is attracting massive attention around the
globe:
• High-grade lithium drill results with
potential of significant by-product credits from tantalum and
niobium enrichment.
• Highly favourable metallurgy expected due to
low impurities, such as iron, and a coarse-grained spodumene
mineralization (white to light-greenish colour, similar to
Whabouchi).
• Lithium-bearing pegmatites accessible at
surface and extending to depth (potentially ideal for
cost-effective open-pit mining).
• 7 known pegmatites on the property provide
significant resource definition potential in 2018.
• Blue-sky exploration potential: Many more
pegmatites possibly hidden beneath overburden.
• Most recently on November 27, Far Resources signed a MOU for the
near-by Thompson Brothers Lithium Dyke, an 800 m
long vertically dipping pegmatite dyke with an historic
non-NI43-101 resource of 3.97 million tonnes grading 1.29%
Li2O (see also here).
• Near-by infrastructure (power line: 4 km;
road: 11 km; airport: 12 km; rail: 30 km). The Zoro Property is
situated in west-central Manitoba within the historic Snow Lake
Mining Camp. The hydro power line to Snow Lake is 5 km south of the
property and the small historic gold mining community of Herb Lake
is located about 10 km southwest. A rail link is located at Wekusko
siding approximately 20 km south of Herb Lake.
• First Nation consultation and engagement not required in the
Flin Flon-Snow Lake greenstone belt where the Zoro Property is
located.
• One of the world's best jurisdictions for mining and
investments: Manitoba is known to be very mining-friendly.
Last year, Manitoba ranked #2 in the world becoming the 2nd best
area for investment in mining (according to reputable Fraser
Institute). The Manitoba Government has implemented key policies to
attract investments for its prolific mining sector, including
already implemented policies such as a Progressive Mining Tax Rate,
Tax Holiday for New Mines, Off-Site Exploration Allowances, New
Investment Tax Credit, Processing Allowance. Junior explorer Far
Resources is also benefitting from such pro-active governmental
policies: In December 2016, Far Resources received a Minerals
Exploration Assistance Program (MEAP) Grant, which means that the
company is getting up to 50% of eligible exploration
expenses from the government! Another grant could be given
in December 2017 again. This MEAP Grant was implemented to
stimulate exploration and encourage companies to start developing
new mines. MEAPs are only granted to projects with a high
probability of success!
On top of all that, there is another good reason for being a
shareholder right now: In early October, the company provided an
update on its Plan of Arrangement about the proposed spin-out
of its gold assets, the Winston Gold Project in New Mexico, USA (i.e. each
eligible shareholders of Far Resources will receive shares of this
new company, at no costs). This will allow the company to focus
exclusively on its Zoro Lithium Project, while shareholders will
benefit from owning 2 stocks.
Bottom-Line
Think world-class. The trend is your
friend.
Picture Source: Brent Baldwin,
author and keynote speaker ThinkWorldClass.com
Company Details
Far Resources Ltd.
Unit 114B - 8988 Fraserton Court
Burnaby, BC V5J 5H8 Canada
Phone: +1 604 805 5035
Email: info@farresources.com
www.farresources.com
Shares Issued & Outstanding: 91,051,316
Chart
Canadian Symbol (CSE): FAT
Current Price: $0.99 CAD (11/28/2017)
Market Capitalization: $90 Million CAD
Chart
German Symbol / WKN (Frankfurt): F0R / A2AH8W
Current Price: €0.662 EUR (11/29/2017)
Market Capitalization: €60 Million EUR
Previous Coverage
Report #9: "Great Time to be a FAT
Shareholder"
Report #8: "Far Resources reports substantial
lithium drill results"
Report #7: "Richer Than Expected: Far Resources
reports lithium assays from rock chip samples at Dyke #7"
Report #6: "Impressive Lithium Drill Results on
the Horizon?"
Report #5: "Drills Back in Action at the Zoro
Lithium Property in Manitoba: Confidently Awaiting Second Round of
Drill Results"
Report #4: "Savvy lithium explorer getting
ready for phase-2"
Report #3: "Far Resources drills 23 m of 1.1%
Li2O and gets ready for 6 additional pegmatites"
Report #2: "Far Resources gains momentum with
drill results pending from its Zoro Lithium Project in
Manitoba"
Report #1: "Drill Results Pending From a
Potentially World-Class Hard-Rock Lithium Project"
Disclaimer: Please read the full disclaimer within the full
research report as a PDF (here) as fundamental risks and conflicts of interest
exist. The author holds a long position in Far Resources Ltd. and
is being paid, on a monthly basis, a retainer from Zimtu Capital
Corp., which company also holds a long position in Far Resoures
Ltd.
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