Example of a large spodumene crystal (16.5 x 7 x 5 cm), rich in lithium (source)
Today, Far Resources Ltd. informed about the completion of the phase-2 drill program on its Zoro Lithium Property in mining-friendly Manitoba, Canada. A total of 1,088 m were drilled with 7 holes (155 m per hole on average), with the goal of testing for the extension of the spodumene-bearing pegmatite Dyke #1 in areas never drilled before (i.e. 30-50 m from historical and phase-1 drill intersections). The phase-1 and phase-2 drill holes were spaced with the intention of working towards a maiden NI43-101 resource.
Although no lab assays have been received yet, the information and interpretation provided today indicate the potential for an astounding discovery as all 7 holes intersected the spodumene-bearing pegmatite Dyke #1, whereas 2 holes clearly caught the eye:
Hole #10 intersected a wide interval of the pegmatite over remarkable 53.7 m.
Hole #12 intersected coarse-grained spodumene crystals (up to 15 cm large!) over 12.2 m (i.e. a potentially very high-grade zone may just have been discovered, whereas coarse mineralization typically indicates very favorable metallurgy).
Both lengths and grades could turn out world-class, when official lab assays will be announced soon. Keith Anderson (President and CEO of Far Resources) explained in today´s press-release:
"We are pleased with the results of the Phase 2 drill program and encouraged by the 53.7m of spodumene-bearing pegmatite intersected in drillhole FAR17-010. This intersection confirms the potential for very wide drill intercepts of spodumene-bearing pegmatite beginning at depths of 120m below surface. The consistent coarse spodumene crystals in hole FAR17-012 shows that Dyke 1 can host very significant widths of high-percentage spodumene."
With a current market capitalization of $5 million CAD, Far Resources aims to delineate a maiden resource estimate in order to catch up to other hard-rock lithium explorers and developers, which currently enjoy significantly higher market valuations, e.g.:
Georgia Lake Lithium Deposit in Ontario, Canada
Rock Tech Lithium Corp. (TSX.V: RCK; $0.91 CAD; market capitalization: $25 million CAD)
Indicated Resource: 3.2 million t @ 1.1% Li2O
Inferred Resource: 6.3 million t @ 1% Li2O
(Reported at a cut-off grade of 0.6% Li2O)
Note: Channel sampling program ongoing.
PAK Lithium Deposit in Ontario, Canada
Frontier Lithium Inc. (TSX.V: FL; $0.40 CAD; market capitalization: $52 million CAD)
Measured & Indicated Resource: 7.9 million t @ 1.58% Li2O, 104 ppm Ta2O5, 0.04% Cs2O and 0.31% Rb2O
Inferred Resource: 0.3 million t @ 1.2% Li2O, 103 ppm Ta2O5, 0.06% Cs2O, and 0.36% Rb2O
(Reported at a cut-off grade of 0.4% Li2O)
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)
Rose Lithium-Tantalum Deposit in Québec, Canada
Critical Elements Corp. (TSX.V: CRE; $0.77 CAD; market capitalization: $113 million CAD)
Indicated Resource: 26.5 million t @ 0.98% Li2O and 163 ppm Ta2O5
Inferred Resource: 10.7 million t @ 0.86% Li2O and 145 ppm Ta2O5
(A minimum mining width of 2 m (true width) and a cut-off grade of 0.75% Li2O were considered for the Mineral Resource Estimate.)
Note: The conclusions of the PEA indicate the operation would support a production rate of 26,606 t of high purity (99.9% battery grade) Li2CO3 and 206,670 pounds of Ta2O5 per year over a 17 year mine life (estimated after-tax IRR of 25%; estimated NPV of $279 million CAD at an 8% discount rate; payback period estimated at 4.1 years). Pictures of spodumene/lepidolite drill cores from phase-2 of exploration at the Rose Deposit (source: Critical Elements Corp.):
Phase-1 Drill Results of Dyke #1 on the Zoro Lithium Property in Manitoba, Canada
The initial 7 holes in late 2016 successfully confirmed historic drilling at Dyke #1. Each hole intersected lithium-bearing spodumene mineralization over intervals of up to 28 m, with 2 holes terminated in mineralization. Based on the results, it appears that lithium grades and pegmatite widths are strongest in the northwest portions of Dyke #1, as shown by the wide and high-grade intersection in hole #7 (1.1% Li2O over 23 m). Further exploration, including additional drilling, will focus in this area of the dyke. At the south end, hole #1 intersected multiple thin pegmatite intervals, possibly due to faulting, returning 1.49% Li2O over 2 m.
The average Li2O grade of all 7 holes exceeded 1%. For example, the Mt. Cattlin Project in Australia (Galaxy Resources) hosted an average resource grade of 1.08% LiO2.
In 1956/1957, when lithium prices and demand were very low, a total of 78 shallow holes were drilled at Zoro by Green Bay Uranium Ltd., identifying 7 pegmatites. About 60% of these holes were drilled into Dyke 1, delineating a (historical) “reserve estimate” of 1.8 million t averaging 1.4 Li2O. Historic drilling was shallow to only test for near-surface mineralization, however it was noted that the pegmatites thicken at depth and remain largely untested below 200 m from surface.
“Although lithium metal prices were first reported in trade publications in 1952, demand was very low. From 1952 to 1974, lithium prices remained flat in terms of current dollars; in terms of constant dollars, however, prices decreased. The potential use of lithium in batteries for electric vehicles was first discussed in the Minerals Yearbook in 1972. The downward trend in lithium metal prices reversed in 1974.“ (Joyce A. Ober in USGS 1999)
Recently, the Fraser Institute ranked Manitoba as the world´s second-best jurisdiction for investment based on their Investment Attractiveness Index. The Zoro Lithium Property also benefits from nearby infrastructure (power line: 4 km; road: 11 km; airport: 12 km; rail: 34 km).
Far Resources Ltd.
Unit 114B – 8988 Fraserton Court
Burnaby, BC V5J 5H8 Canada
Phone: +1 604 805 5035
Shares Issued & Outstanding: 58,671,556
Canadian Symbol (CSE): FAT
Current Price: $0.09 CAD (04/24/2017)
Market Capitalization: $5 million CAD
German Symbol / WKN (Frankfurt): F0R / A2AH8W
Current Price: €0.065 EUR (04/25/2017)
Market Capitalization: €4 million EUR
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.