Belmont Resources Inc has announced that its option partner Marquee Resources Ltd (ASX:MQR) has begun a 5,800 meter (m) drill program to further develop the known copper-gold deposit at the Lone Star project in Washington State.
The company said 42 holes are planned to depths from 50m to 270m, with the objectives of confirming grade, width and tenor of mineralisation, advancing the historic Inferred mineral resource to a current Indicated resource category, producing a Preliminary Economic Assessment (PEA), and investigating for nearby resource extensions to the east and south.
“This is the beginning of a very aggressive drill program that will eventually advance the project to a production ready stage within a relatively short time line,” Belmont Resources CEO George Sookochoff said in a statement.
READ: Belmont Resources inks agreements with Marquee Resources on Lone Star Copper-Gold and Kibby Lithium properties
“We look forward to receiving and announcing assay results in the near future,” Sookochoff added.
Under the terms of the option agreement, Marquee has committed to pay Belmont $504,000 in cash payments and three million company shares for a $2.6 million work program to produce a PEA 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.
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 Sean at sean@proactiveinvestors.com