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J U N E / J U L Y 2 0 1 6 www.resourceworld.com 21 b r o k e r ' s p i c k s S h a y n e N y q u v e s t L ithium has been basking in favourable market sentiment in recent months, mainly as a result of rising demand in the lithium-ion battery sector. Tesla Motors recently set an ambitious target to crank out half-a-million battery-powered cars by 2018, two years ahead of schedule. I have my eye on a few junior compa- nies that have what I consider promising projects. The first is a lithium hard-rock project in Manitoba with a historic non-NI 43-101 compliant resource. The other com- panies are working to outline and recover potential lithium-bearing brines associ- ated with mature oilfield brines in North Central Alberta. Far Resources Ltd. [FAT-CSE] acquired the 52-hectare Zoro Project in the Snow Lake area of Manitoba. The project cov- ers a number of known lithium pegmatite occurrences, one of which referred to as the Principal Dyke contains a historic non-NI 43-101 compliant "reserve" of 1.727 million tonnes grading 0.94% Li 2 O. This mineral reserve is historical estimate which does not conform to current stan- dards, and as such should not be relied upon. Naturally, Far Resources intends to upgrade this work to current standards and advance the project. The project was originally staked in 1953 and over $6 million was spent on the property by 1957. A minimum of seven pegmatite dykes were identified that span a 2 km long zone and a total of 78 holes were drilled. About half of them targeted the Primary Dyke. Promising assay results were received from other dykes as well (2.24% to 7.28% Li 2 O). No significant work was completed after 1957. Based on this information, I believe there is excellent potential to expand and refine lithium resources on this property. In addition, historic assays indicate that there are other rare metals present that have not been adequately assessed. Canadian International Minerals Inc. [CIN-TSXV; CDNMF-OTC] is advanc- ing its Alberta lithium brine project with joint venture partner, Noram Ventures Inc. [NRM-TSXV]. Noram is earning a 50% interest in the project. The property is located 207 km northwest of Edmonton and hosts the multi-element Sturgeon Lake brine deposit. A NI 43-101 compli- ant report filed in 2016 outlined inferred resources containing 5.7 billion cubic metres of water containing an average grade of 67.5 mg/L of lithium, 4,641.3 mg/L potassium, 114.0 mg/L of boron and 374.3 mg/L of bromine. The partners plan to bulk-sample the brine and perform bench-scale testing to determine if the extraction of lithium and other elements is economically viable. Empire Rock Minerals Inc. [EPR- TSXV; ULUCF-OTC] recently announced it is earning a 70% interest in the 355,000-hectare Fox Creek lithium project in northwest Alberta. The area covers large portions of producing oil and gas fields which host saline formation water aquifers known as the Beaverhill Lake Brine. The Beaverhill Lake Brine contains elevated, and potentially economic, concentrations of lithium, potassium, boron, bromine, calcium, magnesium, and sodium. Empire plans to investigate the potential for com- mercial production of lithium carbonate and other elements at Fox Creek. MGX Minerals Inc. [XMG-CSE; 1MG-FSE] holds a 300,000-hectare land package in northwest Alberta that hosts some very high levels of lithium-bearing brine. The company has identified an ini- tial group of 16 past producing oil wells that lie within the lithium-bearing brine pools of the Swan Hills formation near Fox Creek (about 260 km by road northwest of Edmonton). A central well within this cluster has historic grades of 130 mg/L lithium and two additional nearby wells reported historical grades of 117 mg/L and 130 mg/L. I believe the lithium market has a bright future and large end users will be looking for secure supply from diversified sources. For these reasons I will continue to watch emerging players in the lithium sector. n Shayne Nyquvest is an Investment Advisor with Mackie Research Capital Corporation (MRCC). This article was prepared, in part, under contract by Thomas Schuster. The opinions, estimates and projections herein are those of the author and may not reflect that of MRCC. The information and opinions con- tained herein have been compiled and derived from sources believed to be reliable, but no rep- resentation or warranty, expressed or implied, is made as to their accuracy or completeness. The issuer(s) mentioned in this article may not be suitable for all investors. Please consult an investment professional for advice regard- ing your particular circumstance. Neither the author nor MRCC accepts liability whatsoever for any loss arising from any use of this article or its contents. Information may be available to MRCC which is not reflected herein. This article is not to be construed as an offer to sell or a solicitation for an offer to buy any securi- ties. The information contained in this article is not intended to constitute a research report. Shayne Nyquvest is the beneficial owner all of the companies highlighted in this article. Market hot on lithium www.resourceworld.com