Belmont Resources Inc. (TSX.V -“BEA”) (the “Company”) has entered into an option to acquire approx. 1632ha. in a group of 14 contiguous mineral claims (102 claim units), known as the Lumby/Bufo property. This property adjoins on strike to the north- northeast with Brett Resources Inc “Hammond Reef deposit” (TSX.V –BBR), (“Brett”) claims. The Lumby/Bufo property is located approximately 35 km. northeast of the town of Atikokan.
Brett is now completing advanced evaluation of its Hammond Reef deposit. Brett’s NI 43-101 compliant report has outlined an inferred resource of 259.4 million tonnes grading 0.8 gram per tonne Au cut-off down to a depth of 300m (approx. 6.7 million ounces of gold). The resource is amenable to open pit mining with a low stripping ratio of 1.43:1. The mineralization remains open along strike and dips gently to the southeast. All of the resources are contained within the Marmion Batholith. The Brett technical report is available on SEDAR.
The Lumby/Bufo Lake property is located within the Lumby Lake Metavolcanic Belt near its southern contact with the Marmion Batholith. The Lumby-Bufo property is accessible by all-season and seasonal logging roads, 45 km north from the Sapawe junction with Highway 11. The Sapawe Junction is located approx. 170 km west from Thunder Bay, Ontario and 24 km east of Atikokan, Ontario.
The claim group has potential for the discovery of high-grade gold, silver and base metal deposits as proven by the exploration work carried out by Atikokan Resources Inc. from 1994 to 2004. Atikokan Resources made a significant high grade silver-base metal discovery at the east end of Lumby Lake reporting grab samples from the main showing assaying up to 416 oz/ton silver, 25% lead and 15% zinc. A 300 ton bulk sample extracted in 2003 averaged 15 oz. silver/ton.
A total of six holes were drilled along strike for 500 meters testing the silver-base metal zone and six holes intersected significant zinc, silver and copper with minor gold values. The silver-base metal sulphide mineralization consists of native silver, acanthite, sphalerite, galena, chalcopyrite and pyrite, typical of volcanic massive sulphide (VMS) deposits. Three holes drilled 300 meters west of the discovery showing and under Lumby Lake, intersected wide zones of silver, zinc, lead and copper mineralization over considerable widths from 42 m to 80 m wide. The consultants for Atikokan concluded at the time of drilling that the mineralization intersected in these drill holes indicated proximal mineralization to a massive sulphide deposit.
Previous exploration work by Atikokan Resources Inc and others in the Bufo Lake area located 4 km west and on strike with the high grade silver-base metal occurrence has identified three geophysical and potential gold and base metal targets under Two Bay and Bufo Lake. These targets were never drill tested. Previous exploration on the south shores of Bufo Lake resulted in the discovery of a high-grade float boulder assaying over 2 oz/ton. A second gold zone consisting of 20 to 30 meter wide quartz-carbonate veining systems contained within carbonitized and sericitized quartz porphyry was uncovered on the main logging road 500 meters west of the south portion of Bufo Lake. Previous VLF-EM and Max Min surveys over Bufo and Two Bay Lake have identified three conductive zones under the lakes. The quartz-carbonate mineralization was discovered on the road west of Bufo Lake. Two grab samples from this showing assayed 5.3 g/t and 9.4 g/t gold and up to 13 g/t silver. Both gold sources, float and road showing, contain similar style of mineralization and rock types. Similar altered rocks have been discovered along the south and southwest shores of Bufo Lake which coincide with one of the 3 VLF- EM and Max Min conductors under the lakes.
Atikokan Resources carried out several surveys which included magnetic, electromagnetic (VLF-EM), induced polarization (dipole-dipole and gradient array), soil geochemical surveys, whole rock geochemical surveys, geological mapping, stripping, trenching, and channel sampling. Most of the prior exploration data has been recovered and retained by Raymond A. Bernatchez, P.Eng.
The gold-bearing structures on the Brett property can be traced northeast onto the Lumby/Bufo Lake property. The Company will be commissioning an NI 43-101 geological report immediately. The technical, part of this press release has been reviewed and approved by Raymond A. Bernatchez, P.Eng., Consulting Geologist and a qualified person as defined in NI 43-101.
The terms of the agreement are as follows:
The Company will pay a finder’s fee or commission of 8% in accordance with the policies of the TSX Venture Exchange.
ON BEHALF OF THE BOARD OF DIRECTORS
The statements used in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Companies forward-looking statements and expectations.
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