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 Acquisition
    In July 29, 2021 Belmont acquired the Lone Star property for $100,000 cash and 1,000,000 Belmont shares.
  • The Lone Star Resource
    At the time of acquisition Lone Star had a historical resources of:
  • 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.

  • Belmont Options Out Lone Star
    November 2021 Belmont options out  Lone Star to Marquee Resources (ASX:MQR)

Term

Detail

Cash Payments

C$504,000 total (paid in tranches over 24 months)

Work Programme

C$2,550,000 in exploration expenditure

Share Consideration

3,000,000 Marquee Resources (MQR) shares issued to Belmont

Technical Deliverable

Produce a Preliminary Economic Assessment (PEA) on the project

Term

24 months from November 2021

Maximum Earn-In

80% ownership of the Lone Star 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
  • Marquee fails to may final C$50,000 agreement payment within the 2-year allowable period. 
  • As a result, Marquee earned only 50% interest in the Lone Star property — not the 80% targeted under Condition 4 of the Earn-In Agreement.
  • Current Lone Star ownership: Belmont Resources 50%/Marquee Resources 50%
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.