Belmont signs mineral property acquisition deal with Pistol Bay Mining

6 September 2019 (Last Updated September 6th, 2019 11:50)

Belmont Resources has agreed to acquire a substantial interest in part of Pistol Bay Mining’s Confederation Lake greenstone belt portfolio in Canada.

Belmont Resources has agreed to acquire a substantial interest in part of Pistol Bay Mining’s Confederation Lake greenstone belt portfolio in Canada.

The Fredart/Gerry Lake and adjoining claim groups are located approximately 25km northeast of Great Bear Resources’ Dixie property and adjacent to Pistol Bay’s Garnet Lake claims.

The Arrow Zone/Garnet Lake, an adjoining claim block also owned by Pistol Bay, hosts a 2017 43-101 inferred mineral resource containing 2.1 million tonnes averaging 5.78% zinc, 0.72% copper, 19.5g/t silver and 0.6g/t gold.

Belmont said the geological setting of Fredart and associated claims is the same as the Garnet Lake area.

The Fredart property and additional units have 406 mining claims with an area of about 6,700ha. It covers 17km of the Confederation Lake greenstone belt.

It features two substantial mineral deposits and several mineralised drill intersections that are ready for follow-up drill testing.

Between 1956 and 2003, the Fredart property had 124 drill holes, totalling 22,500m. Belmont said further drilling on the western extension of the Fredart trend and the Joy-Caravelle area has not been compiled.

Under the agreement, Belmont can earn a 65% interest in the Fredart/Gerry Lake property and various adjoining claims by making cash payments of $140,000 and delivering 4.0 million shares by the second anniversary of exchange approval.

The deal also allows Belmont to increase its stake in the properties to 75% after completion of second anniversary obligations by paying $200,000 in cash. Belmont and Pistol Bay would then enter a joint venture agreement.

Belmont Resources is engaged in the acquisition, exploration and development of mineral properties in Canada and the US.

The company owns a 75% stake in the Kibby Basin lithium project covering 2,056ha in Esmeralda County, Nevada, US. Belmont shares 50/50 ownership with International Montoro Resources on two northern Saskatchewan uranium properties.