The Lone Star Copper-Gold Project, Washington State

About Lone Star

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 lies on a 3‐kilometer long trend of gold copper mineralization linked by geology, in both rock types and structure, as well as the accompanying gold copper mineralization.

The geology and mineralization of the Lone Star Property is strongly influenced by the 600 meter wide No. 7 Fault

Lone Star History

  • Lone Star Copper-Gold Project, Washington State
    A low-cost acquisition, advanced with partner funding

    The Acquisition
    On July 29, 2021, Belmont acquired the Lone Star property for C$100,000 cash and 1,000,000 Belmont shares. Lone Star sits on the US side of the Republic-Greenwood belt, directly across the border from Belmont’s BC projects.

    The Historic Resource
    At the time of acquisition, Lone Star carried a historic resource estimate totalling about 745,000 tonnes and 33 million pounds of copper, with gold credits (see table).

  • Historic resource based on $2.84/lb Copper and $593 oz Gold

  • NI 43‐101 Disclosure:
    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.

  • Monetizing the Asset
    Within four months, in November 2021, Belmont optioned Lone Star to Marquee Resources (ASX: MQR) on the following terms:

    Term Detail
    Cash payments C$454,000, paid in tranches over 24 months
    Work programme C$2,550,000 in exploration expenditure
    Share consideration 3,000,000 MQR shares issued to Belmont
    Technical deliverable A Preliminary Economic Assessment (PEA) on the project
    Term 24 months from November 2021
    Maximum earn-in 50% of the Lone Star project

    The Result
    For C$100,000 and 1 million shares, Belmont received:

    • C$454,000 in cash, about five times its cash cost
    • 3,000,000 Marquee shares
    • C$2.55 million of exploration funded by its partner
    • A retained 50% interest in the project

    Belmont got its cash back several times over, gained exposure to Marquee’s shares, and still holds half of an advanced copper-gold project.

  • Marquee 2021-2022 Lone Star Drilling
    November 17, 2021: Marquee Drills 7,800+m (42 holes) at Lone Star Copper-Gold Project. 
  • 2022 New MRE Announced By Marquee
Lone Star new 2022 Resource Table
  • November 29, Marquee Completes 2023 PEA

    LOM

    NPV (pre-tax, 12%)

    IRR

    Payback

    14 years

    −US$123.9M

    −10.2%

    Year 14
Belmont Resources Properties Map
No. 7 Fault Mines

Mines on the No.7 Fault

NI 43-101 Disclosure:

Technical disclosure in this web page 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.