Belmont to option Athelstan from Forty Ninth
2020-02-24 16:16 ET – News Release
Mr. George Sookochoff reports
BELMONT SIGNS LOI TO ACQUIRE ATHELSTAN-JACKPOT CROWN GRANTS IN THE GREENWOOD GOLD CAMP, B.C.
Belmont Resources Inc. has entered into a letter of intent with Forty Ninth Ventures Ltd. whereby Belmont and the vendor will finalize the terms of a definitive purchase agreement that will provide Belmont with an option to acquire a 100-per-cent interest in the vendor’s right, title and interest in and to the Crown-granted claims known as the Athelstan-Jackpot property, located in the Greenwood mining division, British Columbia.
The proposed Athelstan-Jackpot acquisition is part of the company’s continued focus to acquire and develop strategic gold properties in the prolific Greenwood mining district.
Background
In the adjacent Republic district of northern Washington State, Kinross Gold developed newly recognized metallogenic models, which resulted in the discovery and subsequent mining of several epithermal gold deposits.
In excess of 2.5 million ounces of gold have been produced from epithermal gold veins in this region.
A similar geologic regime to that of the Republic district is present in the Greenwood area. Whereas previous exploration and development had primarily focused on Skarn-type copper-gold deposits, comparatively little exploration has targeted epithermal-type gold deposits.
George Sookochoff, who recently became president and chief executive officer Belmont Resources, and is a GIS (geographic information system) database specialist, has over the years digitally compiled geological, geochemical, geophysical and other analytical data from the Greenwood camp dating back to the late 1800s into a single, seamless GIS digital database.
Belmont is utilizing this extensive GIS database to assess the probability of occurrences of undiscovered epithermal gold deposits in the Greenwood camp by analyzing the geological patterns of epithermal gold deposits in Washington State and looking for comparative characteristic in the Greenwood camp GIS database.
The Athelstan-Jackpot properties, as well as the other recently acquired properties by Belmont, have been selected based on, in part, this comparative analysis process.
About The Athelstan-Jackpot property
The Athelstan-Jackpot property is located eight kilometres west of Grand Forks, B.C., and approximately three km southeast of the former Phoenix mine, which produced, during the period 1900 to 1976, 27 million tonnes at a grade of 0.9 per cent copper and 1.12 grams per tonne gold from a number of different orebodies (Church, 1986). This amounts to over one million ounces of gold production from the Phoenix deposit.
The property is situated at the intersection of two major, regional fault zones. The Lind Creek fault is an east-west trending, moderate north dipping, Jurassic thrust fault and has a close spatial relationship with much of the gold mineralization in Greenwood area.
A Jurassic-aged quartz-feldspar porphyry also occurs along the Lind Creek fault at the Athelstan-Jackpot property. This intrusive has a regional association with gold mineralization in the Greenwood area.
The property was staked in the late 1890s and was worked intermittently from 1901 through to 1940. Total production during this period was in the order of 33,200 tonnes of direct smelting ore at an average grade of about 5.4 g/t Au (approximately 6,324 ounces) and 6.3 g/t Ag (approximately 7,378 ounces) (Minfile 082ESE047).
A 2003 trenching and rock sampling program was managed by R. Walters of Spokane, Wash. Linda Caron, MSc, PEng, of Grand Forks, completed trench layout, geological mapping and reporting. The results were reported in a December, 2003, assessment report on the Athelstan-Jackpot property authored by Ms. Caron.
In the 2003 program, seven trenches were dug on two different targets (J-34 and B-1 zones) for a total of 275 lineal metres of excavation.
A total of 123 rock samples were collected from the 2003 trenches and from old workings
An impressive zone of sulphide mineralization occurs in Trench J34-5 that returned 6.6 g/t Au, 12 g/t Ag and 6 per cent arsenic over a true thickness of 3.7 m in one section sampled (samples 7585 to 7593).
A second section, sampled a few metres to the west, returned 9.2 g/t Au, 18 g/t Ag and 6.6 per cent As over a 2.5 m true thickness (samples 7580 to 7584).
The best result returned from a mineralized shear was from sample 7642, at the base of an inclined stope sampled returned 21.8 g/t Au, less than five g/t Ag and 16.7 per cent As across a 0.8 m true width.
Another sample obtained from this zone returned eight g/t Au, 190 g/t Ag and 8.2 per cent As over a true thickness of 1.3 m (sample 7548).
One sample, from the base of an old shaft, returned 28.4 g/t Au, 166 g/t Ag and 13 per cent As across 0.3 m (sample 7555). A detailed, property-scale geological mapping program was completed in 2004 again by Ms. Caron, MSc, PEng, and detailed in an August, 2004, assessment report authored by the same.
The mandate of the program was to better understand the nature of mineralization, to understand the relationship between different zones of known mineralization and to evaluate the potential for discovery of additional mineralization on the property.
One of the distinct styles of mineralization observed on the property consists of low sulphidation epithermal quartz veinlets and silicification.
One recommendation of the 2004 report was for drilling to test for low-grade bulk tonnage gold mineralization.
Belmont plans to review all previous exploration data from the Athelstan-Jackpot property, and propose an exploration budget and program for 2020.
Terms of the proposed transaction
Under the terms of the LOI, Belmont may acquire a 100-per-cent interest in the Athelstan-Jackpot Crown grants by making certain staged cash payments and share payments of common shares in the capital of Belmont to the vendor:
- On TSX Venture Exchange approval, 200,000 common shares of Belmont Resources, subject to a four-months-plus-one-day hold period from issuance date upon signing of a final agreement;
- After a period of one year from the signing of the final binding agreement, a cash payment in the amount of $50,000 (U.S.) plus an additional 200,000 common shares of Belmont Resources, subject to a four-month-and-one-day hold period from issuance date;
- Belmont will have the option to issue common shares valued at $25,000 (U.S.) in lieu of the cash payment of $25,000 of the total $50,000 (U.S.) cash payment. Share price will be determined by a five-day trading average price preceding the one-year option anniversary date;
- Upon Belmont acquiring a 100-per-cent right, title and interest to the property, the owner will retain a 2-per-cent NSR (net smelter royalty) in the property;
- Belmont will have the right to buy back 1 per cent of the NSR for $500,000 (U.S.).
NI 43-101 disclosure
Technical disclosure in this news release has been approved by Laurence Sookochoff, PEng, a qualified person as defined by National Instrument 43-101.
Other business
Stock options
The company has granted 200,000 options to directors and officers at an exercise price of five cents. The options are exercisable for three years. The options are granted pursuant to the company’s stock option plan, applicable regulatory policy and subject to regulatory acceptance.
Investor relations
The company has mutually agreed to terminate the investor relations agreement with 360 Aviation Services Inc. effective Dec. 31, 2019. The company would like to thank 360 Aviation for its assistance since April, 2016, in introducing the company’s Kibby Basin-Nevada lithium project to investors and financing during the company’s exploration programs.
About Belmont Resources Inc.
Belmont Resources is a Canadian-based resource company. The company is systematically exploring and acquiring gold properties in Southern British Columbia and northern Washington State.
We seek Safe Harbor.
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