RE:fat may become interesting @ 5 cents The lithium market appears to have entered a new phase. Some would speak of an over-saturation. Others only realize that more realism is coming in slowly. Until recently, the mention of "lithium" was sufficient to hunt unknown shares into airy valuation heights overnight. Meanwhile, really interesting news seems to be fading. This is what happened at Far Resources Ltd. (CSE: FAT; FRA: F0R) just a few days ago, when the company published a mandatory report with the very technical title "Completion of the Phase II Drilling Program".
In our opinion, however, this report deserves a more detailed reading, because in essence it means that Far Resources will soon be joining the circle of lithium explorers with 43-101 resource! This should change the valuation of the company significantly, because among the hardrock lithium explorers with resource, the assessments begin at USD 25 million stock exchange (see Rock Tech Lithium Corp. (TSXV: RCK) and reach up to 50 million CAD stock exchange value (See Frontier Lithium Inc. (TSXV: FL), Far Resources Ltd., a latecomer added, is just about 5.8 million CAD stock market, and we believe it will not stay that way :
The Far Resources project is located in a well-developed infrastructure in Manitoba. Power lines run only four kilometers away, the road is 11 kilometers away, and the train runs only 34 kilometers away. Measured against Canadian conditions, this is not a distance. Even the fact that historical drillings from the year 1956 are present, says some, because even at that time - with far more primitive exploration methods - the surface pegmatites were noticeable. The goal was to find raw material for the glass industry, a market for batteries was not yet available. However, from this early period, there are plenty of results that you should not simply ignore, even though they may not meet today's standards. After all, 78 drill holes were drilled between 1956 and 57 and a total of seven (!) Pegmatites were identified.
This is not enough: at that time, very good lithium contents with great thicknesses were discovered. Top results report up to 1.4% of lithium dioxide over 49.8 meters - and there is even a historical resource, namely 1.8 million tons with 1.4% of lithium dioxide, which is however a tiny section in only one of the seven Pegmatites.
All this historical information will be reviewed and validated by Far Resources with the drill program mentioned above. The orientation of the drill holes and the drilling density have been chosen so that "a first resource can be worked out according to the requirements of NI 43-101 standards," it says literally in the report. And then comes the real hint with the fence post: "Within the scope of the Phase II drill program, seven NQ drill holes were downed to a total of 1,088 meters and all seven holes intersected the spodumen-containing pegmatites Dyke 1." These obvious hits correspond exactly to the historical results and The corresponding 3-dimensional model. "FAR17-010 bore average spodumic pegmatite mineralization on 53.7 meters (162.9 to 216.6 m) and FAR17-012 drilled coarse-grained spodum crystals (up to 15 cm long) at a depth of 103 , 4 to 115.6 meters (12.2 m). "
The reference to the spodum crystals is important because spodumene is the natural host mineral for lithium dioxide. Basically, it's a sloppy way of saying, "We've found lithium dioxide!", Only the stock market would never allow such a thing. What is still missing is the check of the lithium contents. Therefore, 167 core samples were sent for analysis. Results should be available in about three weeks. In view of the many matches with the historical results, everyone must decide for themselves how likely he thinks the results of the previous geologists will be confirmed. Either way you should put Far Resources on the Watch.