Belmont Resources Inc has provided new updates on the upcoming drill program on its Lone Star copper-gold project, which is under an option/joint venture (JV) agreement with Marquee Resources.
The firm is planning a 5,000 metre program to confirm grade, width and tenor of mineralization at the project, which is located in the US state of Washington, with drilling is set to kick off in mid-November.
Under the terms of the option agreement, Marquee has committed to pay Belmont $504,000 in cash payments and 3 million company shares for a $2.6 million work program to produce a preliminary economic assessment on the project. In exchange, Marquee will gain 80% ownership of Lone Star.
If the work is completed within a two-year term, the companies will form a joint venture and make a production decision.
READ: Belmont Resources inks agreements with Marquee Resources on Lone Star Copper-Gold and Kibby Lithium properties
“We are certainly creating synergies with our new option/JV partner Marquee Resources,” Belmont CEO George Sookochoff said in a statement. “In only a few days since the signing of our option/JV agreement, the Lone Star project has gone from ‘zero’ to ‘ready to put the drill in the ground’.”
Sookochoff noted that the firm is “comfortably set up” and prepared to start drilling in November, with plans to continue through winter.
Vancouver-based Belmont is engaged in the business of acquiring and re-developing past-producing copper-gold-silver mines in southern British Columbia and Northern Washington State.
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