Belmont Resources Inc. (TSX-V:BEA) revealed that it has forged option agreements related to its Lone Star copper gold project in Washington State and its Kibby Basin lithium project in Nevada with Marquee Resources Ltd (ASX:MQR).
The Vancouver, British Columbia-based company said that under the two option agreements, Marque will make cash payments totaling $C604,000 to Belmont, spend $C5.050 million in exploration expenditures on the two projects and issue to Belmont 6 million shares of Marquee over the two-year earn-in period to earn an 80% interest in each of the two projects.
In a statement, Belmont CEO George Sookochoff said: “We are very pleased to partner with Marquee in the development of the Lone Star and Kibby projects at an accelerated pace. Marquee is committed to bringing the Lone Star Mine into a production ready stage within a relatively short timeline. They back up this commitment with an impressive offering of cash, money in the ground and Marquee shares.”
“They also recognize the potential of the Kibby lithium property and are committing significant funds to test a highly conductive anomaly on the property, which may indicate a high content of lithium brine at depth. This is a great opportunity for Belmont shareholders as we aggressively advance both projects on a non-dilutive basis while retaining an interest.”
Sookochoff noted that with Marquee being the operator and advancing the Lone Star and Kibby projects, Belmont will concentrate on “advancing its CBC project” where a geophysical survey has delineated a prospective large copper-gold porphyry target.
“An IP survey will commence shortly followed by drilling in 1Q 2022. As well Belmont plans further drilling in 2022 on its AJ gold project which hosts two past producing gold mines,” added Sookochoff. “Belmont will continue to look for additional land acquisition opportunities in the Greenwood – Republic mining camps.”
Lone Star is a former producing mine with an existing historic high-grade Copper-Gold resource with a cut-off grade of 1.5% Cu (copper equivalent) or 5.0g/t Au (gold) equivalent and based on US$593/ounces gold and US$2.84/pounds copper. “The project is drill ready with good infrastructure including water and road access,” said the company.
A nearly 5,000 meter (42 drill holes) stage 1 drill program is scheduled to kick off on November 15, 2021 to confirm grade, width and tenor of mineralization, infill the shallow historic inferred resource in the north with a view to bring into the indicated category, and test for nearby resource extensions to the east and south, said the company.
A geophysical survey has identified a large conductive anomaly at depth showing potential for both brine and clay lithium deposits at the Kibby lithium property in Nevada.
“The property is fully permitted for water extraction of 2,895 acre/feet annually, which can be used for brine processing and production of lithium compounds,” noted the company. Drilling is planned for the first quarter of 2022 and will consist of a two phase 4,000m drill program.
Lone Star and Kibby JV terms
The company said after satisfying the options for Lone Star and Kibby, Belmont and Marquee will form a joint venture (JV) on each of the properties with Marquee as the operator of the JV to carry on operations with respect to the properties.
Belmont Resources is engaged in the business of acquiring and re-developing past producing copper-gold-silver mines in southern British Columbia and Northern Washington State. This region is considered to have the highest concentration of mineralization and past producing mines in western North America.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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