Belmont Resources Inc. (TSX.V -“BEA”) are pleased to announce that they have entered into an Option Agreement (the “Agreement”) with EuroGas, Inc. (“EuroGas”) (Other OTC: EUGS; Frankfurt Stock Exchange: EUG.F; XETRA: EUG.DE; Hamburg Stock Exchange: EUG.H; and Stuttgart Stock Exchange: EUG.SG), whereby EuroGas can earn up to 60% interest in the Lumby/Bufo property (16 contiguous claims – 2,144 ha) located approximately 35 km. northeast of the town of Atikokan and adjoining on strike to the north-northeast with the Osisko Mining Corp. (former Brett Resources Inc.) “Hammond Reef” deposit.
To earn its initial 49% interest, EuroGas must issue one million restricted shares of its common stock to Belmont; incur $1,500,000 in exploration expenditures by December 31, 2011 ($500,000 of which must be incurred by December 31, 2010; and make a cash payment to Belmont of $50,000). Belmont will be the operator until EuroGas earns greater than 50% interest. Furthermore, EuroGas can increase its interest to 60% by issuing an additional five million shares of its common stock to Belmont; incurring a further $500,000 in exploration expenditures by December 31, 2012, and paying Belmont additional $50,000 in cash.
The Lumby/Bufo claim group has potential for the discovery of high-grade gold, silver and base metals deposits as shown by Belmont’s recent drilling in the south Bufo Lake area, and previous exploration work carried out by Atikokan Resources Inc. from 1994 to 2004.
South of the Lumby/Bufo property, Osisko/Brett are presently focused on expanding gold resources at the Hammond Reef gold deposit. A preliminary assessment (“PA”) study was completed on Hammond Reef on November 12, 2009, resulting in an inferred resource of 6.7 million ounces of gold (259.4 million tonnes grading 0.8 g/t gold at a cut-off grade at 0.30 g/t, which relates to the economic cut-off in the PA study). The deposit remains open along strike and depth, and over 97% of this resource is within 300 metres of surface.
About Belmont Resources Inc.
Belmont has recently entered into an option to acquire 100% interest in 2144 ha. (16 contiguous mineral claims), known as the Lumby/Bufo property located approximately 35 km. northeast of the town of Atikokan and adjoining on strike to the north-northeast with the Osisko Mining Corp. (former Brett Resources Inc.) “Hammond Reef” deposit.
Belmont Resources Inc. has previously focused on acquiring and developing uranium properties in developed and emerging uranium districts. Belmont (50/50) with International Montoro Resources Inc. has acquired two significant uranium properties (Crackingstone –982 ha & Orbit Lake –11,109 ha) in the Uranium City District in Northern Saskatchewan. The Company also holds interests (50/50 with Int. Montoro) in one rare earth mineral and one uranium claim block in the Central Mineral Belt in Labrador.
Further information can be obtained from the Company website at www.BelmontResources.com and www.sedar.com, or by phoning 604-683-6648.
ON BEHALF OF THE BOARD OF DIRECTORS OF
BELMONT RESOURCES INC.
Vojtech Agyagos, President & CEO
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.
Neither the 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.