September 4, 2018 Report #10 - Baystreet.ca...Astounding Size Potential Sampling Suggests“ Report...

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September 4, 2018 Report #10 Lithium in Québec and Frac Sand in British Columbia 92 Resources starts working relationship with Osisko Mining to establish a new lithium district in the James Bay Region of Québec Today, 92 Resources Corp. made a landmark announcement of having successfully concluded a game- changing transaction with one of Canada’s most respected mining companies, Osisko Mining Inc. (TSX: OSK; market capitalization: $433 million CAD). By combining the Corvette Property from 92 Resources with the adjoining FCl Property from Osisko, an extensively large-scale prospective lithium hard- rock trend has now been consolidated in the renowned James Bay Region. 92 Resources now effectively controls more than 15 km of possible strike length for lithium-bearing pegmatites in a mining friendly jurisdiction. So far, 92 Resources has defined 3 km of strike length with the identification of 4 lithium-bearing pegmatites outcrop- ping at surface, named CV1, CV2, CV3 and CV4. Having now 5 times as much possible strike length offers superb chances to find many more pegmatites along this trend. CV1 was sampled by 92 Resources in 2017 and returned excellent assays, showing impressively high grades. Thereafter, exploration resulted in the discovery of 2 new lithium-bearing pegmatites, CV3 and CV4. According to today’s news, assays from 2018 channel sampling are pending and will be reported shortly. In case positive results can be announced, the company would be propelled into the enviable position of controlling a potentially large lithium district with drill-ready targets. What makes this all the more attractive is the favorable location of being just 10 km south of the all-season Trans- Taiga Road and powerline infrastructure corridor. Company Details 92 Resources Corp. #1400 – 1111 West Georgia Street Vancouver, BC, Canada V6E 4M6 Phone: +1 778 945 2950 Email: [email protected] www.92resources.com Shares Issued & Outstanding: 74,442,456 Canadian Symbol (TSX.V): NTY Current Price: $0.055 CAD (08/31/2018) Market Capitalization: $4 Million CAD German Symbol / WKN: R9G2 / A11575 Current Price: €0.038 EUR (08/31/2018) Market Capitalization: €3 Million EUR Chart Canada ( TSX.V) Chart Germany ( Tradegate) Uncovering meter-long spodumene crystals, rich in lithium, at the Corvette Property.

Transcript of September 4, 2018 Report #10 - Baystreet.ca...Astounding Size Potential Sampling Suggests“ Report...

Page 1: September 4, 2018 Report #10 - Baystreet.ca...Astounding Size Potential Sampling Suggests“ Report #7: “High-Grade Lithium and Tantalum confirmed by Channel Sampling“ Report #6:

September 4, 2018

Report #10Lithium in Québec andFrac Sand in British Columbia

92 Resources starts working relationship with Osisko Mining to establish a new lithium district in the James Bay Region of QuébecToday, 92 Resources Corp. made a landmark announcement of having successfully concluded a game-changing transaction with one of Canada’s most respected mining companies, Osisko Mining Inc. (TSX: OSK; market capitalization: $433 million CAD).

By combining the Corvette Property from 92 Resources with the adjoining FCl Property from Osisko, an extensively large-scale prospective lithium hard-rock trend has now been consolidated in the renowned James Bay Region. 92 Resources now effectively controls more than 15 km of possible strike length for lithium-bearing pegmatites in a mining friendly jurisdiction.

So far, 92 Resources has defined 3 km of strike length with the identification of 4 lithium-bearing pegmatites outcrop-ping at surface, named CV1, CV2, CV3 and CV4. Having now 5 times as much

possible strike length offers superb chances to find many more pegmatites along this trend.

CV1 was sampled by 92 Resources in 2017 and returned excellent assays, showing impressively high grades. Thereafter, exploration resulted in the discovery of 2 new lithium-bearing pegmatites, CV3 and CV4.

According to today’s news, assays from 2018 channel sampling are pending and will be reported shortly. In case positive results can be announced, the company would be propelled into the enviable position of controlling a potentially large lithium district with drill-ready targets.

What makes this all the more attractive is the favorable location of being just 10 km south of the all-season Trans-Taiga Road and powerline infrastructure corridor.

Company Details

92 Resources Corp.#1400 – 1111 West Georgia StreetVancouver, BC, Canada V6E 4M6Phone: +1 778 945 2950 Email: [email protected] www.92resources.com

Shares Issued & Outstanding: 74,442,456

Canadian Symbol (TSX.V): NTYCurrent Price: $0.055 CAD (08/31/2018)Market Capitalization: $4 Million CAD

German Symbol / WKN: R9G2 / A11575Current Price: €0.038 EUR (08/31/2018)Market Capitalization: €3 Million EUR

Chart Canada (TSX.V)

Chart Germany (Tradegate)

Uncovering meter-long spodumene crystals, rich in lithium, at the Corvette Property.

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drian Lamoureux, President and CEO of 92 Resources, explained the significance

of today’s announcement and the great opportunity for investors and shareholders:

“We are very excited to arrive at this agreement with Osisko for the FCI Property. We recognized early-on with the discovery of the CV1 and CV2 pegmatites, that it would be beneficial to consolidate the entire prospective trend. Today, I am very pleased to announce that we now have the ability to explore several kilometers of the prospective CV Pegmatite Horizon as one project. The Company is well-positioned to build upon the significant discoveries made to date and to advance the Corvette-FCI Project with the most upside possible for our shareholders.”

With channel sampling assays pending and expected shortly, it is not difficult to see the vast upside potential that 92 Resources now aims to materialize in the near and long term, especially when considering that a drill program may start fairly quickly.

Bottom Line

After several months of a heavy correction in share price with little newsflow, the timing now appears ripe for this $4 million CAD market cap company to start creating exceptional shareholder value with a highly increased newsflow based on aggressive exploration programs to unlock the vast potential that the combined Corvette-FCl Property offers.

Concluding such an important joint venture with a strong and well-known partner like Osisko Mining is a major accomplishment for 92 Resources going forward with the goal of establishing a new world-class lithium district comprising of numerous lithium-rich pegmatites at or near surface in an established mining region.

Due to the numerous pegmatites, exceptional strike length, widths and grades of lithium and tantalum thus far observed at the Corvette Property

alone, I fully believe that, together with the newly acquired FCl Property, this rare combination of crucial factors allow for the identification of very large tonnages of spodumene-bearing pegmatites, similar to other advanced projects within central Québec as Nemaska’s Whabouchi Project, Galaxy’s James Bay Project and Critical Elements’ Rose Project.

According to today’s news release:

“In addition to the strong lithium potential, the FCI Property also includes the Lac Bruno Gold Showing, defined as a gold and sulphide-bearing amphibolite boulder with

an assay of 38.1 g/t Au. The showing was discovered by Virginia Mines Inc. and highlights a boulder field in the area with a source yet to be located. Additional work was recommended up-ice of the discovery, within the Corvette-FCI Property, and has yet to be completed.

The FCI Property also includes the Séricite Showing where a grab sample from a sulphide-bearing sericite schist returned 0.3 g/t Au, 150 g/t Ag, 1.89% Cu, 11.15% Pb, and 1.45% Zn. Although not a focus for the Company, the base and precious metal potential of the properties is evident and additional ground work is warranted.

Report #10 | 92 Resources Corp.

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Terms of Agreement

Under the terms of the Agreement, the Company may earn a 75% interest in twenty-eight (28) claims comprising Osisko’s FCI Property by satisfying the following conditions, subject to TSX Venture Exchange approval:

• Issuance of 1,000,000 shares upon clos-ing date of the Agreement

• Incurring $250,0000 in work explor-ation expenditures and issuing of 1,000,000 shares on or before the first anniversary date of closing

• Incurring $800,0000 in work exploration expenditures on or before the second anniversary date of closing, upon which the Company would vest a 25% interest

• Incurring $1,200,000 in work explora-tion expenditures on or before the third

anniversary date of closing, upon which the Company would vest an addi-tional 25% interest, for a total of 50% undivided interest in the FCI Property

Osisko will act as Operator of the FCI Property for the term of the 50% earn-in, with a Steering Committee of equal representation formed to provide advice and direction to the Operator. Upon completion of the 50% earn-in (third anniversary of TSX-V approval (or clos-ing), a Joint Venture Corporation will be formed with the Company retaining an Option to acquire a further 25% interest, for a total of 75% undivided interest, through funding of the next $2,000,000 in exploration expenditures. The Com-pany may become Operator upon notice to Osisko that it intends to incur the $2,000,000 in work expenditures for a final undivided interest of 75%. Osisko’s remaining 25% interest may be further reduced through dilution if they elect

to not fund their portion of subsequent exploration/development. If ownership falls below 10%, Osisko will have the right to convert this remaining interest into a 1% Net Smelter Royalty (NSR), of which, the Company retains the right to buy for $5,000,000 (cash or shares), and thereby, would obtain a 100% undivided interest in the FCI Property.”

Report #10 | 92 Resources Corp.

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Previous Coverage

Report #9: “Booming Frac Sand Markets Golden for 92 Resources“

Report #8: “High Lithium Grades and Astounding Size Potential Sampling Suggests“

Report #7: “High-Grade Lithium and Tantalum confirmed by Channel Sampling“

Report #6: “Crews mobilized for next phase of exploration on the Hidden Lake Lithium Property in NWT“

Report #5: “92 Resources snags hard-rock lithium property in Quebec“

Report #4: “Why 92 Resources looks ready for the next upswing“

Report #3: “Extremely high-grade lithium assays from surface“

Report #2: “Untapping Canada‘s Hidden Lithium Treasuries“

Report #1: “92 Resources on the case for Hard Rock Lithium“

Report #10 | 92 Resources Corp.

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Disclaimer and Information on Forward Looking StatementsAll statements in this report, other than state-ments of historical fact should be considered forward-looking statements. Much of this report is comprised of statements of projection. Statements in this report that are forward looking include that 92 Resources Corp. or its partner(s) can and will start work programs on its properties; that exploration has or will discover a mineable de-posit; that the company can raise sufficient funds for exploration or development; that any of the mentioned mineralization indications or estimates are valid or economic; that 92 Resources now effectively controls more than 15 km of possible strike length for lithium-bearing pegmatites; that superb chances exist to find many more pegma-tites along this trend; that CV1 sampling returned excellent assays showing impressively high grades; that assays are pending and will be reported shortly; that 92 Resources would be propelled into the enviable position of controlling a potentially large lithium district with drill-ready targets in case positive results can be announced; that the Corvette Property is in a favorable location making it all the more attractive.; that it’s not difficult to see that vast upside potential that 92 Resources now aims to materialize in the near and long term, es-pecially when considering that a drill program may start fairly quickly; that the timing now appears ripe for this $4 million market cap company to start creating exceptional shareholder value with a highly increased newsflow based on aggressive exploration programs to unlock the vast potential that the combined Corvette-FCl Property offers; that 92 Resources concluded an important joint venture with a strong and well-known partner like Osisko Mining, representing a major accomplish-ment for 92 Resources going forward with the goal of establishing a new world-class lithium district comprising of numerous lithium-rich pegmatites at or near surface in an established mining region; that due to the numerous pegmatites, exceptional strike length, widths and grades of lithium and tan-talum thus far observed at the Corvette Property alone, the author fully believes that, together with the newly acquired FCl Property, this rare combin-ation of crucial factors allow for the identification of very large tonnages of spodumene-bearing pegmatites, similar to other advanced projects within central Québec as Nemaska’s Whabouchi Project, Galaxy’s James Bay Project and Critical Elements’ Rose Project. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in these forward-looking statements. Risks and uncertain-ties respecting mineral exploration and mining companies are generally disclosed in the annual financial or other filing documents of 92 Resour-ces Corp. and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this report. In addition, with respect to 92 Resources Corp., a number of risks relate to any statement of projection or forward statements, including among other risks: the receipt of all necessary approvals and permits; the ability to conclude a transaction to start or con-tinue exploration; uncertainty of future lithium and

commodity prices, capital expenditures and other costs; financings and additional capital require-ments for exploration, development, construction, and operating of a mine; the receipt in a timely fashion of further permitting for its legislative, political, social or economic developments in the jurisdictions in which 92 Resources carries on business; operating or technical difficulties in connection with mining or development activities; the ability to keep key employees, joint-venture partner(s), and operations financed. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Rockstone and the author of this report do not undertake any obligation to update any state-ments made in this report unless required by law.Disclosure of Interest and Advisory CautionsNothing in this report should be construed as a solicitation to buy or sell any securities men-tioned. Rockstone, its owners and the author of this report are not registered broker-dealers or fi-nancial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including Rockstone’s re-port, especially if the investment involves a small, thinly-traded company that isn’t well known. The author of this report is paid by Zimtu Capital Corp., a TSX Venture Exchange listed investment company. Part of the author’s responsibilities at Zimtu is to research and report on companies in which Zimtu has an investment. So while the author of this report is not paid directly by 92 Re-sources, the author’s employer Zimtu will benefit from appreciation of 92 Resources’ stock price. In addition, the author owns equity of 92 Resources Corp. and would also benefit from volume and price appreciation of its stock. 92 Resources may have one or more common directors with Zimtu. Overall, multiple conflicts of interests exist. There-fore, the information provided herewithin should not be construed as a financial analysis but rather as advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Rockstone and the author of this report do not guarantee the accuracy, completeness, or useful-ness of any content of this report, nor its fitness for any particular purpose. 92 Resources has not reviewed all the content prior to publication and may not agree with statements made herein. Last-ly, the author does not guarantee that any of the companies mentioned will perform as expected, and any comparisons made to other companies may not be valid or come into effect. Please read the entire Disclaimer carefully. If you do not agree to all of the Disclaimer, do not access this website or any of its pages including this report in form of a PDF. By using this website and/or report, and whether or not you actually read the Disclaimer, you are deemed to have accepted it. Information provided is educational and general in nature.

Author Profile & Contact

Stephan Bogner (Dipl. Kfm., FH)Rockstone Research 8050 Zurich, SwitzerlandPhone: +41-44-5862323Email: [email protected]

Stephan Bogner studied at the International School of Management (Dortmund, Germany), the European Business School (London, UK) and the University of Queensland (Brisbane,

Australia). Under supervision of Prof. Dr. Hans J. Bocker, Stephan completed his diploma thesis (“Gold In A Macroeconomic Context With Special Consideration Of The Price Formation Process”) in 2002.

Bogner then marketed and translated into German Ferdinand Lips‘ bestseller (“Gold Wars“). After working in Dubai for 5 years, he now lives in Switzerland and is the CEO of Elementum International AG specialized in storage of gold and silver bullion in a high-security vaulting facility within the St. Gotthard Mountain Massif in central Switzerland.

Rockstone is specialized in capital markets and publicly listed companies. The focus is set on exploration, development and production of resource deposits as well as commodity and currency markets.

Through the publication of general geological basic knowledge, the individual reports receive a background in order for the reader to be inspired to conduct further due diligence. All reports are made accessible free of charge, whereas it is always to be construed as non-binding educational research and is addressed solely to a readership that is knowledgeable about the risks, experienced with stock markets, and acting on one’s own responsibility.

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Report #10 | 92 Resources Corp.