As my readers are aware, I like the lithium space. FAR Resources (CSE:FAT)(FSE:F0R) holds potential and is trading off its highs.
FAR Resources Ltd., specializes in overlooked opportunities; they seek out such opportunities within historic high grade mining camps in North America and aim to unlock their potential using modern exploration techniques and enhanced geologic understanding. Their management team continually seeks out such opportunities in stable mining jurisdictions with established infrastructure, so that they can unlock the mineral opportunities that lie beneath the surface.2
The company has what might be called a “strategic project portfolio” that includes a mix of mineral and metal exploration projects. They are currently engaged in two such projects, the Winston Project that is located in the Black Range Mining District of Southwestern New Mexico and secondly the Zoro Lithium Project which is located near Snow Lake Manitoba.3
The Winston Project
In June of this year, FAR Resources completed its acquisition of a 100% interest in the Winston Gold Project in Sierra County, New Mexico, from Redline Minerals. These particular claims cover the past producing Little Granite and Ivanhoe Emporia Mines and the company’s initial focus was on the Little Granite Mine.
“In the mid 1980’s limited drilling intersected high grade silver and gold values over approximately 120 meters strike length along a well-defined epithermal vein system. The vein remains open to the north and south, and at depth. The Company is undertaking a data review and compilation of available information from previous work with plans to carry out, pending submission and approval of a minimal impact exploration permit, an initial 6 – 8 hole diamond drill program to validate the historical results.”4
In speaking about the Winston Gold Project, Keith Anderson commented that:
“We are reviewing our plan for the short and long term for both our Zoro Lithium and Winston projects to decide on the best course of action going forward for both these projects. We have compiled two separate expert teams to advance these projects and over the coming months, we will be making some strategic decisions on how best to advance both these projects to ensure each is managed to its best advantage.”4
This month the shareholders of FAR Resources will vote on a proposal to spin out the Winston Gold Project in New Mexico to a newly created company. Each eligible shareholder of FAR resources will receive shares of this new company at no cost. This move will allow the company to focus exclusively on its Zoro Lithium Project while shareholders will benefit from owning two stocks!
Zoro Lithium Project
With company shareholders soon voting to spin out the Winston Gold Project, one might get the idea that something big is going on with Zoro and they would be right. The Zoro Lithium Project, located near Snow Lake Manitoba, covers a number of known lithium pegmatite occurrences. FAR has been actively exploring its wholly owned Zoro 1 claim, as well as the adjacent optioned ground from Strider Resources. This property targets multiple northwest-trending lithium-cesium-tantalum (LCT) bearing pegmatite dykes. FAR has thus far focused exploration on testing the historical estimate of Dyke 1 through drilling to replicate historical drill hole intersections, as well as expanding the resource.5
In an interview from May of this year, Keith Anderson spoke with David Morgan of the Morgan Report about FAR Resources and the Zoro Project. Anderson begins by saying that he feels “they have one of the more exciting projects in Canada” and that this project is located the #2 mining jurisdiction in the world, namely Manitoba. According to Anderson, what is unique about the Zoro Project, is that they are dealing with pegmatite hard rock and that most of the news surrounding lithium is usually about brines. The company decided to go into the pegmatite side of lithium and Anderson comments that with hard rock, “it isn’t rocket science, it’s about grade and tonnage.” They were drawn to Zoro because of the history that exists there, they are in a position where they aren’t looking for lithium, they know they have it, it’s just a matter of the tonne and grade. They know that the lithium is there because in 1956, 78 drill holes were put into dykes. They’ve duplicated the historical rock chip samples and there are historical intercepts in excess of 40 meters and 1.4% They are hoping to show that the “good old boys knew what they were doing.”6
In May, FAR resources reported substantial lithium drill results in its Phase 2 drill program at Zora. Impressive lithium grades were found of significant lengths & hole 12 cut through 12.2 m of large spodumene crystals, returning high grade lithium. With this finding, extensive lithium mineralization has been confirmed in Dyke #1.
With the most recent drill results being announced, one might wonder how much longer FAR resources will be considered a junior. Exceptionally high grade lithium intercepts were found and these are strongly enriched with tantalum and niobium which are potentially highly valuable by products.9
Zoro is attracting attention and with good reason, from high grade lithium drills, favorable metallurgy, lithium bearing pegmatites that are accessible at the surface and extending to depth, nearby infrastructure and a provincial government that has implemented key policies to attract investments for its mining sector, it’s no wonder people are standing up and paying attention to Zoro.
FAR is making a strategic move in planning to focus its energy on the Zoro Project and with good reason, they are poised to cash in large! They certainly made a good move when they acquired this project, and after all, opportunity does require a little work sometimes…FAR is showing they are willing to go the extra mile in this regard.
Dr. Kal Kotecha
Disclaimer: I have been compensated by the company. I am biased. Do you own thorough due diligence.
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