The Phoenix Claim Group, B.C.

The Phoenix claim group consists of four recently optioned Athelstan-Jackpot Crown Grants, the adjacent Gelnora and Bay Horse claims, the Pride of the West Crown Grant and the Black Bear reverted Crown Grant.

The claims are located in the prolific Greenwood mining camp of southern British Columbia. This area has a rich history of mining and is considered to be one of the most concentrated mineralized areas of the province.

Belmont’s Phoenix Claims are situated 1 km south-east of the historic Phoenix Open Pit Mine which produced over 1 million ounces of Gold and 500 million pounds of Copper up to 1978 (historical results). The Athelstan Claim Block (Athelstan-Jackpot, Glenora and Bay Horse claims) are immediately adjacent to the portal of the Golden Crown Mine which contains a NI 43-101 compliant indicated resource of 163,000 tonnes containing 62,500 of gold equivalent ounces and an inferred resource of 42,000 tonnes containing 13,100 of gold equivalent ounces (source: GOM website).

A total of 2,488 tonnes grading 15.4 g/t Au and 1.5% Cu were reportedly mined from the Golden Crown Vein during the early part of the 1900’s, although the extent of workings and dumps suggest more (BC Minfile). Production came from a steep south dipping vein averaging 1.5 m in thickness, via three stopes on the 100-foot level within 55 m of the shaft

The proposed Athelstan-Jackpot acquisition is part of the Company’s continued focus to acquire and develop strategic gold properties in the prolific Greenwood mining district.

Background:

In the adjacent Republic District of northern Washington State, Kinross Gold developed newly recognized metallogenic models, which resulted in the discovery and subsequent mining of several epithermal gold deposits.

In excess of 2.5 million ounces gold have been produced from epithermal gold veins in this region.

A similar geologic regime to that of the Republic district is present in the Greenwood area. Whereas previous exploration and development had primarily focused on Skarn type copper-gold deposits, comparatively little exploration has targeted epithermal type gold deposits.

Mr. George Sookochoff who recently became President & CEO Belmont Resources and is a GIS database specialist, has over the years digitally compiled geological, geochemical, geophysical and other analytical data from the Greenwood Camp dating back to the late 1800’s into a single seamless GIS digital database.

Belmont is utilizing this extensive GIS database to assess the probability of occurrences of undiscovered epithermal gold deposits in the Greenwood Camp by analyzing the geological patterns of epithermal gold deposits in Washington State and looking for comparative characteristic in the Greenwood camp GIS database.

The Athelstan-Jackpot properties, as well as the other recently acquired properties by Belmont, have been selected based on in part this comparative analysis process

The property is situated at the intersection of two major, regional fault zones. The Lind Creek fault is an east-west trending, moderate north dipping, Jurassic thrust fault and has a close spatial relationship with much of the gold mineralization in Greenwood area.

A Jurassic aged quartz-feldspar porphyry also occurs along the Lind Creek fault at the Athelstan-Jackpot property. This intrusive has a regional association with gold mineralization in the Greenwood area.

The property was staked in the late 1890’s, and was worked intermittently from 1901 through to 1940. Total production during this period was in the order of 33,200 tonnes of direct smelting ore at an average grade of about 5.4 g/t Au (~6,324 ozs) and 6.3 g/t Ag (~7,378 ozs) (Minfile 082ESE047)

A 2003 trenching and rock sampling program was managed by R. Walters of Spokane, Washington. Linda Caron, M.Sc., P. Eng of Grand Forks completed trench layout, geological mapping and reporting. The results were reported in a December 2003 Assessment report on the Athelstan-Jackpot Property authored by Linda Caron.

 

  • In the 2003 program seven trenches were dug on 2 different targets (J-34 and B-1 Zones), for a total of 275 lineal metres of excavation.
  • A total of 123 rock samples were collected from the 2003 trenches and from old workings
  • An impressive zone of sulfide mineralization occurs in Trench J34-5, that returned 6.6 g/t Au, 12 g/t Ag and 6% As over a true thickness of 3.7 metres in one section sampled (samples 7585-7593).
  • A second section sampled, a few metres to the west, returned 9.2 g/t Au, 18 g/t Ag and 6.6% As over a 2.5 metre true thickness (samples 7580-7584).
  • The best result returned from a mineralized shear was from sample 7642, at the base of an inclined stope sampled returned 21.8 g/t Au, <5 g/t Ag and 16.7 % As across a 0.8 metre true width.
  • Another sample obtained from this zone returned 8.0 g/t Au, 190 g/t Ag and 8.2% As over a true thickness of 1.3 metres (sample 7548).
  • One sample, from the base of an old shaft, returned 28.4 g/t Au, 166 g/t Ag and 13% As across 0.3 metres (sample 7555).

A detailed property scale geological mapping program was completed in 2004 again by Linda Caron, M.Sc., P. Eng. and detailed in an August 2004 Assessment Report authored by the same.

The mandate of the program was to better understand the nature of mineralization, to understand the relationship between different zones of known mineralization, and to evaluate the potential for discovery of additional mineralization on the property.

  • One of the distinct styles of mineralization observed on the property consists of low sulfidation epithermal quartz veinlets and silicification
  • One recommendation of the 2004 report was for drilling to test for low-grade bulk tonnage gold mineralization

Belmont plans to review all previous exploration data from the Athelstan-Jackpot property and propose an exploration budget and program for 2020.

The Republic Washington District Gold Mines

The Greenwood Mining Camp

The Phoenix Claim Group

The Phoenix Mineralized Trend

The Athelstan Gold Zones and Trenching

Gold Sampling Results at J34 Trench Zone

Gold Soil Anomalies

Athlestan-Jackpot Property Geology

Athelstan-Jackpot Detailed Geology