Belmont Resources Inc (TSX-V:BEA) said Marquee Resources Ltd (ASX:MQR), its option partner, has completed the first two holes of a planned 42 hole, 5,800 meter drill program on the Lone Star copper-gold project in Washington State.
The company noted the objective of the drill program is to confirm grade, width and tenor of mineralisation to that of the 252 historical drill holes, and achieve a drill hole spacing that is appropriate for advancing the 2007 historic Inferred mineral resource to a current Indicated category, as well as producing a Preliminary Economic Assessment (PEA), after which a decision may be made to move the project into production.
“With the drill now operating 24/7, and will continue to do so throughout winter, we are well underway in achieving our goal of establishing a potential commercial mining operation at the Lone Star project within two years,” Belmont Resources CEO George Sookochoff said in a statement.
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Belmont noted that the drill samples are being prepared for shipment to the lab for analysis.
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