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24 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 7 Broker's Picks by Stew Vorberg and Doug Wood F inding a company that is highly undervalued in the market is often like searching for that elusive pearl in an oyster; you have to dig though a lot of mollusks to find the rare few that contain treasure. We've been digging around for a long time and believe we have found another pearl. At first glance, A.I.S. Resources Ltd. [AIS-TSXV] looks like many other companies seeking to capitalize on early- stage opportunities in hot sectors of the resource market. We believe the key factor that sets this company apart from others is its highly specialized technical team. Leading that team is Phillip Thomas who recently joined the Board of Directors of AIS. Thomas has specialized in the exploration, development, financing and sales of lithium deposits within the public company structure. He has extensive knowledge of the lithium car- bonate markets in Japan, Korea, China and Taiwan. From 2003 to 2008, he was Chief Executive Officer of Admiralty Resources, worked on the Rincon Salar (salt lake) Project in Argentina and prepared the bankable feasibility study for the exploi- tation of the Salar del Rincon. He raised more than $6 million for this project and sold it in 2008. Applying his vast experience and expertise, Thomas has identified and secured another quality lithium brine project in Argentina, called Guayatayoc, in the heart of what has been dubbed the Lithium Triangle of South America. The 5,000-hectare property is located in Jujuy Province along highway 11 just 5 km from the town of Abralaite on the Puna Plateau and close to a gas pipeline. The Guayatayoc Salar has already seen some high-quality work completed on it and this is one of the key factors that attracted Thomas to the project. Previous work included seismic studies and a detailed analysis of the lithology of the basin as well as the location of aquifers. Sampling has returned lithium concentra- tions that range from 200 to 800 ppm. The magnesium ratios are reported to be less than 4-to-1, which is excellent for low cost processing. The salar also hosts concentrations of boron, (found in the mineral ulexite), which is seen in layers just 30 cm below the surface. As a bonus, the property already has Stage 2 mining permits (which include boron and lithium) and an Environmental Impact Study has been completed. AIS Resources intends to systematically sample the salar by digging 4 to 5-metre deep pits on a 500 to 1,000-metre grid pat- tern. Subsequent selective infill pits will be dug at 100 to 250-metre spacings. This will allow the company to analyze mul- tiple brine samples and complete lithium and chemistry isoconcentration maps to define the best drill locations to define a NI 43-101 resource. AIS Resources has the right to earn a 100% interest in the property by paying US $4.5 million once positive exploratory and scientific studies are completed. Until then, the company will pay US $150,000 for a six-month option (which can be extended for another six months). No stock issuance or staged payments will be made which allows the company to mini- mize dilution and test-drive the project prior to having to purchase it. To summarize, AIS Resources has an exceptional technical and market- ing team that has acquired an advanced lithium brine project in the heart of the Lithium Triangle. The company has 19.2 million shares outstanding and a market capitalization of just $4.5 million. Their technical team, led by Phillip Thomas, has advanced, developed and sold lithium projects before and we believe they will do it again. n Stew Vorberg and Doug Wood are Investment Advisors with Mackie Research Capital Corporation (MRCC). This article was pre- pared, in part, under contract by Thomas Schuster. The opinions, estimates and pro- jections herein are those of the authors and may not reflect that of MRCC. The informa- tion and opinions contained herein have been compiled and derived from sources believed to be reliable, but no representation or war- ranty, expressed or implied, is made as to their accuracy or completeness. The issuer(s) men- tioned in this article may not be suitable for all investors. Please consult an investment pro- fessional for advice regarding your particular circumstance. Neither the author nor MRCC accepts liability whatsoever for any loss aris- ing 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 securities. The informa- tion contained in this article is not intended to constitute a research report. Stew Vorberg and Doug Wood are beneficial owners of the com- pany highlighted in this article. aIS Resources to advance argentina guayatoyoc Salar www.resourceworld.com