Belmont Signs Option/JV Agreements with Marquee Resources on Lone Star Copper-Gold and Kibby Lithium Properties
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Marque to make cash payments totaling $604,000 and $5,050,000 in exploration expenditures on two projects over a two-year earn-in period
Vancouver, B.C. Canada – TheNewswire - November 4, 2021 - Belmont Resources Inc. (“Belmont”), (or the “Company”), (TSXV:BEA); (FSE:L3L2) is pleased to announce that it has entered into option agreements (the “Option Agreements”) with respect to its Lone Star Copper Gold Project (“Lone Star”) in Washington State and its Kibby Basin Lithium Project (“Kibby”) in Nevada with Marquee Resources Ltd. (ASX:MQR) (“Marquee”).
Under the two Option Agreements, Marque will make cash payments totaling $C604,000 to Belmont, spend $C5,050,000 in exploration expenditures on the two projects and issue to Belmont 6,000,000 shares of Marquee over the two-year earn-in period to earn an 80% interest in each of the two projects.
Belmont’s President and CEO, George Sookochoff commented: “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 time line. 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.
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 Q1 2022. As well Belmont plans further drilling in 2022 on its AJ gold project which hosts two past producing gold mines. Belmont will continue to look for additional land acquisition opportunities in the Greenwood – Republic mining camps.”
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The Lone Star is a former producing mine with an existing historic (2007) high grade Copper-Gold resource with a cut-off grade of 1.5% Cu (CuEq) or 5.0g/t Au equivalent (AuEq) and based on US$593/oz gold and US$2.84/lb copper. The Project is drill ready with good infrastructure (including water) and road access and only minutes away from community.
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(1)Source: Technical Report and Resource Estimate on the Lone Star Depoist, Ferry County Washington USA, PE Mining Consultants Inc., Effective date: Sept. 23, 2007.
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(2)A qualified person has not done sufficient work to classify the historic estimate as current mineral resources or mineral reserves. As such the issuer, Belmont Resources, is not treating this historical estimate as current mineral resources or mineral reserves.
Lone Star Option:
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Upon signing of the Option Agreement
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- make a cash payment of $C100,000 to Belmont;
- make an additional $US205,000 ($C254,300) to Belmont for which Belmont will use to complete its option agreement for 100% mineral rights and complete transfer of 100% ownership of land title to Belmont.
- issue 1,000,000 common shares of Marquee Resources.
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-- In exchange for Belmont transferring a 10% interest in the Project to Marquee.
2. within 6 months of the signing of the Option Agreement
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- make an additional cash payment of $C50,000
- incur $C550,000 in exploration expenditures
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-- In exchange for Belmont transferring a further 20% interest in the Project to Marquee.
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within 15 months of the signing of the Option Agreement
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- make an additional cash payment of $C50,000
- issue additional 1,000,000 common shares of Marquee Resources
- incur additional $C1,000,000 in exploration expenditures
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-- In exchange for Belmont transferring a further 20% interest in the Project to Marquee.
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within 24 months of the signing of the Option Agreement
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- make an additional cash payment of $C50,000
- issue additional 1,000,000 common shares of Marquee Resources
- incur additional $C1,000,000 in exploration expenditures
- deliver a Preliminary Economic Assessment (PEA) on the Project after which a decision may be made to move the project into production.
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-- In exchange for Belmont transferring a further 30% interest for a total of 80% in the Project to Marquee.
Total: $C504,000 Cash; $C2,550,000 Expenditures; 3,000,000 Marquee Shares for 80% interest.
Lone Star Drilling
A ~5,000 meter (42 drill holes) stage 1 drill program is scheduled to commence November 15, 2021
The drill program is planned to:
a) Confirm grade, width and tenor of mineralisation
b) Infill the shallow historic inferred resource1 in the north with a view to bring into the indicated category
c) Test for nearby resource extensions to the east and south
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A geophysical survey identified a large conductive anomaly at depth showing potential for both brine and clay lithium deposits. 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.
Kibby Option:
1. Upon signing of the Option Agreement
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- make a cash payment of $C100,000
- issue 1,000,000 common shares of Marquee Resources
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-- In exchange for Belmont transferring a 10% interest in the Project to Marquee.
2. within 6 months of the signing of the Option Agreement
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- incur $C1,000,000 in exploration expenditures
- issue additional 1,000,000 common shares of Marquee Resources
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-- In exchange for Belmont transferring a further 41% interest in the Project to Marquee.
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within 15 months of the signing of the Option Agreement
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- incur additional $C1,500,000 in exploration expenditures
- issue additional 1,000,000 common shares of Marquee Resources
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-- In exchange for Belmont transferring a further 29% interest for a total of 80% in the Project to Marquee.
A 1.5% NSR is held by 3rd Party with a buyout provision of 50% for CDN$1M.
Belmont will retain a 0.5% NSR
Total: $C100,000 Cash; $C2,500,000 Expenditures; 3,000,000 Marquee Shares for 80% interest.
Kibby Drilling:
Drilling is planned for Q1 2022 and will consist of:
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Two phase 4,000m drill program.
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Phase I - 2,050m: Drill holes MQR01 (850m) and MQR02 (1,200m) will test the large conductive anomaly at depth.
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Phase II – Depending upon Phase I results will focus on infilling between MQR01 MQR02 to determine brine volume estimation.
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Lone Star and Kibby Joint Venture terms
Upon satisfaction of each of the Options, Belmont and Marquee shall form a joint ventures (the “Joint Ventures”) on each of the properties with Marquee as the operator of the Joint Ventures (the “Operator”) to carry on operations with respect to the Properties.
About Marquee Resources
Marquee Resources Ltd is an ASX listed explorer that has interests in the Ontario Cobalt Projects (Werner Lake, Skeleton Lake) and the Clayton Valley Lithium Project (Nevada, USA).
About Belmont Resources
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. By utilizing new exploration technology, geological modelling and specialized 3D data analysis, the company is successfully identifying new areas of mineralization beneath and/or in the near vicinity of the past producing mines
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- A-J, B.C. – *Athelstan Jackpot Gold-Silver mines
- CBC, B.C. – *Betts Copper-Gold mine
- Lone Star, Washington – *Lone Star Copper-Gold mine
- Pathfinder, B.C. – *Bertha Pathfinder Gold–Silver mines
- Black Bear, B.C. – Gold
- Pride of the West, B.C.- Gold
- Kibby Basin, Nevada – Lithium
- Crackingstone, Sask. – Uranium
* past producing mine
Qualified Person
Laurence Sookochoff, P.Eng., is the qualified person under National Instrument 43-101 who has reviewed and approved the technical content of this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
“George Sookochoff”
George Sookochoff, CEO/President
Ph: 604-505-4061
Email: george@belmontresources.com
Website: www.BelmontResources.com
We seek safe harbor. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has not approved nor disapproved of the information contained herein.