The Lone Star Mine, Republic Mining Camp, Washington State

Highlights

  • Past producing mine
  • 2007 Historic resource
  • Historic resource based on $2.84/lb Copper and $593 oz Gold
  • Company plans to update resource with current metal prices (~$4.40/lb Copper and $1,800 oz Gold)

Option/JV

Belmont recently signed an option/JV agreement with Marquee Resources (ASX:MQR) (see NR Nov.4, 2021) whereby Marquee agrees to commit the following:

  • $504,000 cash payments
  • $2,550,000 Work Program
  • 3,000,000 MQR Shares
  • Produce a Preliminary Economic Assessment on the project
  • Over a 24 month term
  • For 80% ownership of the Lone Star project.
  • Upon completion, a joint venture is to be formed and a decision will be made in regards to bringing the Lone Star into production.

Lone Star Optio/JV Timeline

Lone Star Option/JV Timeline

Drilling

~5,000 Drilling to Start November 15, 2021
Objective:

  • Infill drilling to move inferred resource material to indicated for Preliminary Economic Assessment
  • Expand resource
  • Bring “historic resource” to current status

Short Timeline to Production

  • Marquee required to produce a Preliminary Economic Assessment Report (PEA) at end of $2,550,000 expenditures.
  • Based on PEA results,  decision will be made to take project directly into production.

Mining

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 open pit and 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.

Milling

The 200 tpd Greenwood Toll Mill is located only 13kms north of the Lone Star property and will potentially receive ore for milling from the Lone Star mine.

The 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 was previously owned by Merrit Mining.  In 2007 Merrit had completed a 43-101 Technical Resource Report and were about to produce a Preliminary Economic Assessment report but due the market crash Merrit Mining went into receivership and the property remained dormant until purchased by Belmont.

Download Lone Star Technical Report 2007

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. The Lexington mine is owned by Golden Dawn Minerals and has a  Current Resource and a Preliminary Economic Assessment.

Class Tonnes Au g/t Cu % AuEq g/t AuEq ozs
Indicated 314,000 6.38 1.04 7.94 80,200
Meas & Ind 372,000 6.47 1.05 8.05 96,300
Inferred 12,000 4.42 1.03 5.96 2,300

Source: Updated Preliminary Economic Assessment on the Greenwood Precious Metals Project, P&E Mining Consultants Inc., Effective date: May 5, 2017.

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 accurate 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 234 hectare Lone Star Property is comprised of a series of contiguous Washington State patented lode claims. 

Lone Star Mine - 3D Model

The Lone Star Mine Washington State

Belmont Resources Properties Map
No. 7 Fault Mines

Mines on the No.7 Fault

LS Claim-Resource-Drill

Lone Star Property Map

Lone Star Section UG mining

Lone Star Section – Possible Mining Scenarios

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.