July 9, 2018 – Far Resources Ltd (CSE:FAT) (FSE:F0R) (OTC:FRRSF) (www.farresources.com) (“Far Resources” or the “Company”) is pleased to announce it has received the first ever resource estimate for Dyke 1 on its Zoro Lithium Property located in mining friendly Manitoba. Dyke 1 contains an inferred resource of 1,074,567 tonnes grading 0.91% Li2O, 182 ppm Be, 198 ppm Cs, 51 ppm Ga, 1212 ppm Rb, and 43 ppm Ta (at a cut-off of 0.3% Li2O). Dyke 1 is open at depth and to the north and south where additional exploration is ongoing. The estimate has an effective date of July 6, 2018, and was prepared by Scott Zelligan P. Geo., an independent resource geologist of Coldwater, Ontario. Dyke 1 is one of eight known spodumene-mineralized pegmatite dykes on the property. The remaining dykes are currently the object of ongoing exploration including drill-testing.
Toby Mayo, President and CEO, commented, “This maiden resource, which covers part of Dyke 1, indicates that we have a substantial base on which to build. In addition to the other seven dykes that are not included in this resource, the Company has numerous untested geological and geochemical targets that we will follow up on during the next phases of exploration at Zoro. We look forward to developing those targets in the coming months.”
The Zoro Property is located near Snow Lake, MB where exploration and development services and personnel are readily accessible and is in close proximity to an established infrastructure of roads, power and rail lines. Manitoba is a favourable location for mining in terms of regulation, support and power cost, ranking as second most attractive jurisdiction for mining investment by the Fraser Institute in 2016.
Current Grade and Tonnage Estimate Methodology
The mineral resource has been estimated and classified as Inferred Mineral Resources in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects by Scott Zelligan, P.Geo. The estimate is based on 22 drill holes drilled by Far Resources at Dyke 1 from 2016 to 2018 using GEOVIA Surpac™ software (version 6.3). It has been assumed, based on all available geological and quantitative evidence, that a continuity of Li2O mineralization exists within the pegmatite dyke known as “Dyke 1”. Wireframes were generated to represent the different mineral domains, including one representing the overall pegmatite dyke, and two representing the higher-grade statistical populations of Li2O above 0.4% Li2O. Assay data was composited to 1m, and a block model was generated with cell sizes of 5x5x5m with sub-celling down to 1.25x1.25x1.25m. The results were interpolated using the inverse-distance-squared method, and care was taken that estimation and reporting parameters conformed with those used on other similar Lithium projects, including a maximum search ellipse radius of 75 m, and a specific gravity of 2.75 t/m3. The main estimated mineral is Li2O; however, supplementary elements Be, Cs, Ga, Rb, and Ta were also estimated to best represent the value of the contained rock in Dyke 1. The cut-off grade of the mineral resources was chosen based on reporting of similar projects, as no economic analysis of Dyke 1 has yet been completed.
As of the effective date of the resource estimate and other than disclosed herein, Mr. Zelligan is not aware of any legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources within Dyke 1.
Inferred Mineral Resources are not Mineral Reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability. There has been insufficient exploration to define the inferred resources as an indicated or measured mineral resource, however, it is reasonably expected that the majority of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. There is no guarantee that any part of the mineral resources discussed herein will be converted into a mineral reserve in the future.
Chain of Custody, Quality Control and Quality Assurance, and Data Verification
Drill core for assay purposes was sawn in half after logging and core mark-up by the Company’s geologist. Samples were collected based on an appropriate sample interval and washed to remove mud from the core saw. The core sample was placed into a clear plastic bag and the sample number written on the bag. An assay tag was inserted into the sample bag, one tag was inserted into the core box marking the sample location and the third tag was retained in storage. All core samples were placed into a white vinyl pail with a sample inventory, labelled and stored in a locked facility until enough samples were available for shipping. At this point the sample pails were taken to the local shipping company and loaded into a sealed transport truck. A bill of lading was signed by the geologist after the number of sample pails were counted and the shipping address confirmed. Receipt of the sample pails was acknowledged by the assay laboratory.
All data used to estimate the above reported mineral resource, including sampling, analytical, and test data, has been verified by Scott Zelligan, P.Geo., from the original sources. This includes a site visit to the Zoro Property, review of previously drilled intervals in person, and a comparison of the drillhole database to drill logs and assay certificates.
A NI 43-101 technical report in respect of this estimate will be filed on SEDAR within 45 days of the date of this news release.
About the Company
Far Resources is actively drilling its Zoro Lithium project located near Snow Lake, Manitoba, which covers a number of known lithium pegmatite occurrences. The Company has recently acquired an option on the Hidden Lake Property in NWT and is initiating drilling for continuity of spodumene mineralization to depth. In the United States, the Company controls the Winston project in New Mexico, an historic mining property with additional potential for silver and gold. Please visit our website at www.farresources.com for full details on our current projects.
The technical content of this news release has been reviewed and approved by Scott Zelligan P.Geo., a qualified person as defined under NI 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS OF
FAR RESOURCES LTD.
Toby Mayo, President and CEO
FOR FURTHER INFORMATION, PLEASE CONTACT
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The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
This news release contains forward-looking statements, which relate to future events or future performance (including our planned exploration for the Zoro Lithium Property and Hidden Lake Property) and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.