Belmont Resources Inc. (TSX.V –“BEA”) (the “Company”) are pleased to announce that they have entered into an Option Agreement with Dorex Minerals Inc. (TSX.V-“DOX”) or (“Dorex”) whereby Dorex can earn up to a 60% interest in the Lumby/Bufo Property (the “Property”) consisting of 23 contiguous claims (3,040 ha) located approximately 35 km northeast of the town of Atikokan, Ontario. The Property is located within the Lumby Lake Metavolcanic Belt near its southern contact with the Marmion Batholiths, and 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. According to Osisko Mining Corp.’s (“Osisko”) public filings, the “Hammond Reef” deposit, (now a wholly owned subsidiary of Osisko) named Hammond Reef Gold Ltd., remains open along strike and depth, and over 97% of this resource is within 300 meters of surface. A 300,000-meter drilling program, geological mapping and a baseline environmental study is currently underway with sixteen drill rigs actively working at a reported rate of 25,000 meters per month.
The Lumby-Bufo Property is contiguous with and on strike to the north-northeast with the Hammond Reef deposit, where Osisko is presently focused on expanding their gold resources. A preliminary assessment (“PA”) study was completed on Hammond Reef on November 12, 2009, resulting in a NI 43-101 compliant Inferred Resource estimate of 6.7 million ounces of gold (259.4 million tonnes @ 0.8 g/t gold, using a 0.3 g/t Au cutoff).
To earn an initial 49% interest in the Property, Dorex will pay to Belmont a non-refundable $10,000 cash payment upon signing this agreement, and an additional $15,000 payment upon Exchange approval. Further, Dorex will issue 400,000 restricted shares of its common stock to Belmont and incur $1,500,000 in exploration expenditures by December 31, 2011 of which $500,000 must be incurred by February 28, 2011. Belmont will be the exploration program operator until Dorex earns greater than 50% interest. Dorex may increase its interest to 60% by incurring a further $500,000 in exploration expenditures by December 31, 2012 and delivering to Belmont a $200,000 cash payment or the equivalent in Dorex common shares.
The Lumby/Bufo claim group has potential for the discovery of high-grade gold, silver and base metal deposits as shown by Belmont’s spring 2010 drilling campaign in the south Bufo Lake area and previous exploration work carried out by Atikokan Resources Inc. from 1994 to 2004.
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.
ON BEHALF OF THE BOARD OF DIRECTORS OF
BELMONT RESOURCES INC.
Gary Musil, CFO/Director
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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