Lone Star Mine, Washington State

Highlights

Historic Resource Estimate*

  • Resource has potential to expand laterally and at depth
  • Situated on No.7 fault which hosts several past producing mines
  • The property is situated on an important geological formation, Republic Graben, which hosts numerous gold & gold-copper mines.

Belmont recently  entered into a Letter of Intent to acquire a 100% interest in the Lone Star copper-gold property.

The Lone Star property is located in northern Washington State on the northeastern tip of the Republic Graben, an important geological feature which hosts several gold and copper mines.

The property is situated on a three kilometre long mineralized trend of gold-copper with past producing gold-copper mines and prospects, including No.7, City of Paris, Lincoln and the Lexington. This mineralized system is structurally controlled by the NW-SE  No.7 fault. The geology of the Lone Star Property is strongly influenced by the No. 7 Fault. The fault has
an acurate northwesterly trace on the Lexington Property to a southerly trace on the Lone Star Property.

The past producing Lone Star Mine operated over two time periods; from 1897-1918 producing 146,540 tonnes, and from 1977-1978 by Granby Mining Co. when 400,000 tonnes of ore were transported from the Lone Star open pit to its Phoenix mill in B.C, 11km to the north.

The Lone Star deposit is interpreted as a series of eight shallow to moderately dipping echelon overlapping zones hosted within a dacitic and minor serpentinite unit. Zones are composed of sheeted and stockwork pyrite-chalcopyrite veins, veinlets and disseminations carrying gold.

The 234 hectare Lone Star Property is comprised of a series of contiguous Washington State patented lode claims, and private mineral rights claims.

The claims cover a previously disturbed area from past underground and open pit mining and if a development program was considered, the open pit area could support an underground operation.
A portal could be established in a bench wall on the current pit and waste rock could be contained within the confines of the current open pit.

Belmont geologists have reconsidered the high-grade Cu +/- Au drillhole intercepts in the area of the historic resource for the potential to support an underground operation. Many historic Lone Star intercepts demonstrate underground mine widths and grade.
Some example drill intercepts are listed below.

Historic Intercepts on the Lone Star Deposit

Moving Forward

The Company will commence to:

  1. Verify previous exploration data.
  2. Bring the historic resource to current resource status utilizing today’s metal prices
    and current 43-101 standards.
  3. Prepare for an IP survey to delineate signatures of current mineralization and target potential areas of resource expansion both laterally and at depth.
  4. Plan drill program to:
        a: test new targets for potential resource expansion delineated from IP survey
        b: infill drill in areas of low data density which could potentially upgrade Inferred resources to Indicated.

NI 43-101 Disclosure:

Technical disclosure in this news release has been approved by Laurence Sookochoff, P.Eng., a Qualified Person as defined by National Instrument 43-101.

 (1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

(2) The quantity and grade of reported inferred resources in this estimation are conceptual in nature.

(3) The mineral resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.

(4) Gold equivalent (AuEq) grade was calculated utilizing a gold price of US$593/oz and copper price of US$2.84/lb., based on the 24 month (at July 31, 2007) trailing average of gold and copper prices, to obtain a conversion factor of % copper x 3.284 + gold g/t = Au Eq g/t. Metallurgical recoveries and smelting/refining costs were not factored into the gold equivalent calculation.

(5) The Cu equivalent (CuEq) cut-off value of 1.5% was calculated and rounded utilizing the following: Cu price US$2.84/lb, $US exchange rate $0.88, process recovery $95%, smelter payable 95%, smelting and refining charges C$7/tonne mined, mining cost C$62/tonne mined, process cost $C28/tonne processed, G&A cost $7.50/tonne processed.

(6) A qualified person has not done sufficient work to classify the historic estimate as current mineral resources or mineral reserves.  As such the issuer, Belmont Resources, is not treating this historical estimate as current mineral resources or mineral reserves.