Far Resources launches lithium drilling in Manitoba

Diamond drilling at the Zoro 1 property near Snow Lake, Manitoba. Source: Far Resources Ltd.

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Diamond drilling at the Zoro 1 property near Snow Lake, Manitoba. Source: Far Resources Ltd.

Far Resources Ltd. [FAT-CSE; OTC-FRRSF; FOR-FSE] said Friday January 19 that it has launched a new phase of drilling at its Zoro lithium property near Snow Lake, western Manitoba.

The move comes after the company received a permit from the Manitoba Government’s office of Sustainable Development to drill 2,000 metres of core.

The Zoro property is comprised of the Zoro 1 claim block, covering approximately 52 hectares near Wekusko Lake and a number of other properties nearby. The Zoro 1 Claim covers a significant lithium pegmatite occurrence known as “Principal Dyke.”

It contains a historic “reserve,” based on 1956 drilling, of 1.8 million tonnes, grading 1.4% Li20 to a depth of 305 metres. Due to a lack of sufficient work, the so-called reserve does not meet NI 43-101 standards of compliance under Canadian regulations. However, these historical estimates can be used as a guide to future exploration, the company has said.

Selection and cutting of drill pad and helicopter landing sites has already begun, the company said in a press release.

Far Resources shares, which have traded as high as $1.07 this year, were down 9.62% or $0.10 to 94 cents on Friday. The 52-week range is $1.22 and $0.06.

Investors in lithium exploration companies like Far Resources are seeking exposure to the predicted electric vehicle revolution. That’s because lithium is a key component of lithium-ion batteries, which are used to power everything from mobile phones to electric cars. Investment activity is driven by the expectation that as demand for lithium-ion batteries increases, new sources of the raw material will become important to the automobile and electronic industries.

“The start of our helicopter-assisted drilling at Zoro marks the beginning of our ongoing program to assess the deeper portions of Dyke 1 and high-grade Dykes 2 through 7,” said Far Resources President Keith Anderson.

“Historic deep drilling returned the widest intercepts of spodumene in Dyke 1, which we will attempt to confirm with this program,” he said. “We are also excited about the lithium potential of high-grade Dykes 2 through 7 where no recent drilling has been undertaken.”

Anderson said the company is ready to take this further as results warrant.

There is no ready market for lithium. Lithium prices are determined by the purity and chemistry of the material as well as the length of the contract between buyer and seller. Brines (in salt ponds) and spodumene (hard rock) represent the two main sources of commercial lithium production.

Far Resources is also exploring for gold and at the Winston Project, which is located in the Black Range Mining District of New Mexico.  The property contains the past-producing Little Granite mine, a high-grade silver-gold operation. The last significant production is believed to have been in the 1930s.

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