Far Resources advise they have discovered five new pegmatite dykes and significantly expanded the pegmatite field at their Zoro Lithium Project near Snow Lake. It appears another recent announcement that they have secured a $12 million equity facility should mesh well with the new discovery.
In a Feb. 19 news release Far Resources Ltd. announced that it has completed its fifth diamond drilling campaign and discovered five new pegmatite dykes on the Zoro. This makes 13 mineralized pegmatites that have been discovered, covering at least a third of the 3,005 hectares of the property.
The five new dykes were discovered by targeting geochemical anomalies in the northern portion of the Zoro claims. Each are spodumene and tantalite-bearing, and similar to eight existing dykes.
Earlier in the month the company advised that it had secured a non-exclusive drawdown equity facility of up to $12 million with New York-based private equity firm Alumina Partners, LLC.
They note that in addition to strengthening the company's balance sheet, the facility will allow Far to pursue exploration activities at Zoro and Hidden Lake, as well as take advantage of new opportunities in the technology metals sector.
The terms of that agreement will allow Far to draw down capital at will in a series of private placements of up to $1 million over each 24-month period. The objective is to provide Far with more flexible access to capital at the company’s discretion.
“This represents a significant milestone for Far,” said Far president and CEO Toby Mayo. “This partnership and cornerstone investment from Alumina will allow the company to advance its excellent Canadian hard rock lithium assets—which are standing up to multiple rounds of expansive exploration—and to pursue its longer term strategies in the sector. The next 12 to 24 months look extremely exciting for the company as we raise our profile and move to become a major participant in North American technology metals.”
In respect to the new discoveries, while expanding the pegmatite field approximately three kilometres to the north, the company feels these highlight the potential for a major pegmatite field existing below the till cover. Moreover, Far says a new discovery to the south of their Dyke 1, where 1.1 million tonnes of Li2O (Lithium) grading 0.91 per cent has been defined so far, shows potential for expansion to the south, where no exploration has yet taken place. There have been intersections of spodumene and tantalite-bearing pegmatites ranged from 0.2 metres to 13.4 metres in several hole. Samples from these have been dispatched and assay results are expected in the following month.
“Once again, Far shows the potential of this exceptional project,” said Mayo. “The scalability is now unquestionable, with at least a third of the property now known to host mineralized dykes. Meanwhile, the property to the west and south of Dyke 1 remains entirely unexplored. Both areas offer huge potential for the discovery of additional pegmatite dykes.”
In other area mining news Rockcliff Metals Corporation announced in mid-February that they have signed a final agreement to further solidify the Snow Lake Camp.
On Feb. 12 Rockcliff announced the signing of the formal purchase agreement with RNC Minerals to acquire 14 properties located in the area around Snow Lake. These acquisitions from RNC’s wholly owned subsidiary, VMS Ventures Inc., call for the issuance of 2,250,000 common shares of Rockcliff to RNC. Rockcliff says that Red Cloud Klondike Strike Inc. acted as their financial advisor.
Rockcliff now has the largest junior property portfolio in the Flin Flon-Snow Lake greenstone belt, which is the largest paleoproterozoic VMS district (copper, gold, zinc, silver) in the world.
Still on mining, Hudbay Minerals’ senior management hosted a conference call Feb. 20 in order to discuss the company’s fourth quarter 2018 results and production and cost guidance for 2019. As the meeting is taking place the day before this column was penned, I don’t have a report on what transpired. However, this may prove to be an interesting event, with prospects of Waterton Global Resource Management running their own slate of officers at the May 2019 annual general meeting, and management undoubtedly being asked for comments on their planned Feb. 28 special meeting of the company’s shareholders. Hope to have a report on the call for my March 8 column.