Resource World Magazine

28 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 1 7 Broker's Picks by Shayne Nyquvest L ithium continues to be a hot commod- ity in the market mainly due to the ever increasing demand in the lithium- ion battery sector. Tesla Motors reports that its Gigafactory in Nevada is expected to pro- duce 35 GWh/year of lithium-ion battery cells by 2018. That means this single factory will produce almost as much as the rest of the world's battery production combined! Lithium prices exploded by 60% last year, and have tripled over the past three. There are four main lithium producers in the world – SQM, Albermarle, FMC and Tianqi Lithium. Naturally, lithium supply will play a pivotal role in how quickly battery pro - duction can accelerate and the junior miners are working hard to find more. I have had my eye on a few junior companies that have what I consider prom- ising lithium projects. I first mentioned Far Resources Ltd. [FAT-CSE] back in May 2016. At that time they had just acquired a lithium hard-rock project in Manitoba with a historic Non-43-101 compliant resource of 1.8 million tonnes grading 1.4% Li 2 O. This mineral reserve is presented as an historical estimate and uses historical termi- nology which does not conform to current standards, and as such should not be relied upon. The company has since aggressively explored and drilled the project with the goal of upgrading and expanding this resource. Recently, Far Resources tabled results from its first drill campaign that confirm the historic assays on Dyke #1, one of seven known lithium-bearing dykes on the property. Each of seven drill holes intersected lithium-bearing mineralization within intervals of up to 28 metres of pegmatite. Some highlights include; • 23 metres of 1.10% Li 2 O in hole FAR16-7 • 7 metres averaging 1.07% Li 2 O in hole FAR 16-2 (hole ended in mineralization) • 9 metres of 1.12% Li 2 O in hole Far16-3 Keith Anderson, President and CEO, stated that he was very pleased that the results from the first drill program on the Zoro lithium property and that results com - pared favorably with historic data. He went on to say that the company has identified higher-grade portions of Dyke #1 which will be the focus of further exploration. Additionally, upcoming field work will assess six other known lithium-bearing pegmatite dykes on the property, where reconnaissance sampling over the summer returned values of up to 6.35% Li 2 O. I believe that Far Resources lithium grades are very respectable. As a quick reference point, the much more advanced Whabouchi lithium pegmatite deposit in Québec, owned by Nemaska Lithium [NMX-TSX], has an open pittable measured and indicated resource grading 1.57% Li 2 O contained in 28 million tonnes. This is just a very basic comparison but I believe that as Far Resources advances its Zoro Project, it will add tonnage and define its metallurgical characteristics which will be the key to adding shareholder value. Far Resources currently has a market capitaliza - tion of only about $4 million. Nemaska has a market capitalization of $446 million. 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 contained herein have been compiled and derived from sources believed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy or complete - ness. The issuer(s) mentioned in this article may not be suitable for all investors. Please consult an investment professional for advice regarding 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 con - strued as an offer to sell or a solicitation for an offer to buy any securities. The information con- tained in this article is not intended to constitute a research report. Shayne Nyquvest is a beneficial owner of the company highlighted in this article. Far Resources confirms lithium grades at Zoro property

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