Phone call with CEO of Far Resources
Hi all. I want to preface this by saying that Keith is very professional and would never give out insider info to an investor. If a CEO does that, sell your shares and get out of the company. I simply had questions to ask and he responded.
I asked Keith a few questions today, mostly to get approximate timelines on drilling completion and an update on progress to date.
As of today they were drilling dyke #1 and the cores are getting shipped to the lab as they come out. I’ve heard from another source that drilling has already taken place on other dykes also and that these cores have been sent to the lab. They will also be drilling the anomaly between dykes 1 and 2 which has the potential to add an 8th dyke. The drilling should be completed within two weeks and from what I understood, assays should be done in 4-6 weeks from now.
Basically they want to determine if this is mineable at 200 m. They will also be determining the strip ratio (volume of overburden in tonnes to be removed to acquire one tonne of ore)as it’s an important factor in determining mining feasibility. My take is that any potential buyer will also want to know this ratio. Keith felt that mining would be economically viable at 3-5 mil tonnes. I suspect that they will surpass that as the other dykes (besides #1) have significant potential also. There may also be a ninth dyke in there but proof will come in the drilling.
They have lots of cash on hand at the moment to complete this phase. If they hit on all these they will require a significant amount of cash to move to the next phase. My thoughts, if they do a pp it will certainly be at a much higher share price than today to avoid excess dilution. Read into that what you want.
The NI43-101 will be based on dyke 1 alone - for now. It can be amended as new results come in.
I asked Keith if he would be keeping investors informed on the drilling progress and the answer was yes. There will be an update (or two?) before we receive assay results.
Additional info - prospecting work late fall and early winter 2017 was conducted both on the Zoro claim and the newly optioned 2200 ha. The work on the optioned land was done by experienced geos and primarily involved walking and looking for further outcrops and collection of rock chip samples from them. My thoughts are that we could receive these at any time.
There will be more money spent on prospecting the optioned land this spring. They will collect more soil samples using crosscut lines (I assume a grid) to determine where to sample. They plan to remove soil to 3 ft and then sample and look for lithium, tantalum and niobium. They will also be taking more soil samples off the ends and perimeters of the dykes, presumably to see if there are dyke extensions.
That’s it for now. Anyone can call Keith as long as it’s not to complain about the share price! If you do, have your questions formulated before hand as most of his day is spent on the phone.