Belmont & Mgx Minerals Receive Encouraging Assays up to 580 PPM Lithium IN First Level Samples to 1270 Feet ON KB-3 IN Kibby Basin, Nevada Lithium Project
BELMONT RESOURCES INC.
#600 – 625 Howe Street, Vancouver, B.C. V6C 2T6
Ph: (604) 683-6648 Fax: (604) 683-1350 E-Mail: [email protected]
BELMONT & MGX MINERALS RECEIVE ENCOURAGING ASSAYS UP TO 580 PPM
LITHIUM IN FIRST LEVEL SAMPLES TO 1270 FEET ON KB-3 IN KIBBY BASIN,
NEVADA LITHIUM PROJECT
Vancouver, B.C. Canada , September 12, 2018 – Belmont Resources Inc. (TSX.V: BEA;
FSE: L3L1; DTC Eligible – CUSIP 080499403); (“Belmont”, or the “Company”).
Kibby Basin Drilling –Preliminary Assays:
Further to our news release of August 27, 2018 Belmont and MGX Minerals Inc. (CSE: XMG)
have received assay results from 125 samples collected from the top 1270 feet (mud rotary
section) of hole KB -3. Anomalous concentrations of l ithium occu rred between 960 and 1270
feet. The section between 1110 and 1210 feet averages 415 parts per million (“ppm”) Li with a
high of 580 ppm lithium.
The borehole targeted the southern portion of a large robust MT conductor, which may represent
saturated sediments c ontaining lithium -rich brines. The hole drilled through lacustrine playa
sediments – dominantly calcareous clays and silts grading to lithified claystone’s and siltstones
at depth. Sand and gravel zones, which may represent brine -bearing aquifers, were encountered
at depths of 150 -170 feet, 210 -230 feet, 260 -300 feet, and 900 -920 feet, where a pote ntially
major aquifer in cobble gravel was intersected.
Table 1. Significant Observations for Kibby Basin Drill Hole #3
At deeper levels, t hin intervals of altered rhyolite ash and possible hot-spring sinter were
encountered at 1411 -1412 feet, 1488 -1490 feet and 1589.5 -1590 feet. Operation of a paleo -
geothermal system is evidenced by the silicified intervals and fronts of pyrite alteration
increasing below a depth of 1500 feet.
Hole KB-3 was drilled by mud rotary methods to a depth of 1270 feet. The hole was completed
as a core tail to a total depth of 1798 feet. The hole diameter was reduced to 3 -5/8 inches to drill
HQ (2.5 inch diameter) core. 25 samples of representative core were selected for assay from this
lower part of the drilling and were delivered to ALS Labs in Reno, Nevada on August 31, 2018
for 41-element ICP analysis (including Li). Samples were of ash layers, silicified sediments, and
high pyrite and magnetite zones. 10 water samples were collected at various levels from 370 feet
through to 1745 feet. Also one sample of well water and one surfa ce water sample were
From To Width Notes
900’ 915’ 15’ Chert-Cobble layer
970’ 1210’ 240’ Dark grey-green clay-silt average 390 ppm Li (reference ALS certificate
RE18197540)
1270’ 1800’ 530’ Numerous sections of grey-green reduced clay-silt and intercalated
ash tuff layers - geochemical analysis pending
collected and delivered to ALS Labs on August 31 st for ICP analysis and physical properties.
Assay results from these drill core and water samples are expected by later this month.
The Kibby Basin shares many characteristics with Clayton Valley, where lithium brines are
being exploited, including: closed structural basin, large conductor at depth, lithium anomalies at
surface and depth, evidence of a geothermal system, and potential aquifers in porous ash and
gravel zones.
Final compilation when further assays are received, and scheduling for the second 2018 drill
hole (KB-4) on the Kibby property are being discussed. The drill s will be mobilized to the
second site as soon as possible
MGX agreement:
On August 24, 2018 the TSX Venture Exchange (the “Exchange”) accepted for filing the
property option agreement (the “Agreement”) between Belmont Resources Inc . (“Belmont”) and
MGX Minerals Inc. (“MGX”) –( CSE Trading Symbol: XMG), dated July 12, 2018 under which
Belmont has agreed to grant to MGX an option to earn up to a 50% interest in its Kibby Basin
Property (“Kibby”). In order to earn an initial 25% interest in Kibby, MGX must:
1. Incur exploration expenditures on the Kibby Hole #1 of 2018 (KB -3) in the amount of
$300,000 by not later than October 1, 2018; and
2. Subscribe for 4 million units (each a ‘Unit”) of Belmont at a price of $0.05 per Unit
where each Unit is comprised of one common share of Belmont and one common share
purchase warrant exercisable to purchase one additional common share of Belmont at a
price of $0.08 in the first year and $0.10 during the second year. The subscription for
gross proceeds of $200,000 was completed on July 23, 2018. The shares and warrants
are subject to a hold period until November 24, 2018.
3. In connection with the transaction Belmont will issued to MGX warrants to purchase up
to 10 million common shares of Belmont for a p eriod of three years at a price of $0.20.
The warrants were issued on August 24, 2018 and are subject to a hold period until
December 25, 2018.
In order to earn an additional 25% (for a cumulative interest of 50%) in Kibby, MGX must:
1. Incur exploration expenditures on the Kibby Hole #2 of 2018 (KB -4) in the amount of an
additional $300,000 (for a total of $600,000 Cdn.) by not later than December 31, 2018.
Further details and terms of the agreement can be reviewed in our July 13, 208 news release
and filed on SEDAR and our website at www.BelmontResources.com
Finders Fee:
Correction to the Exchange bulletin of August 24, 2018. Belmont will pay a finder’s fee to R7
Capital Ltd. (Karim Rayani) of up to 5% in Units on each $300,000 in Exploration Expenses
incurred. Each Unit shall consist of one common share at a deemed price of $0.07 and one
warrant exercisable for two years at $0.10. It is expressly understood that the finder’s fee and
the number of Uni ts issued by the Company is solely based on the amount of Expenditures
incurred. (ie. Upon MGX completing $300,000 in expenditures, Belmont will issue to R7
Capital 214,286 common shares and warrants).
NI 43-101 Disclosure
Robert (“Bob”) G. Cuffney, Certified Professional Geologist, a Qualified Person as defined by National
Instrument 43-101, has reviewed and approved the technical information in this news release.
About Belmont Resources Inc.
Belmont is an emerging resource company engaged in the ac quisition, exploration and
development of mineral properties in Canada and Nevada, U.S.A.
For further information see our Website at: www.BelmontResources.com
-Facebook https://www.facebook.com/Nevadalithium/
-Twitter https://twitter.com/Belmont_Res
Belmont has recently optioned 31 mineral claims encompassing approx. 7 sq.km; located 24 km northwes t of Saint
John, New Brunswick – the Mid Corner/Johnson Croft – a Zinc, Cobalt prospect.
On March 30, 2016; the Company acquired sixteen placer (16) mining claims, representing 1036 hectares (2,560
acres) in Esmeralda County, Nevada, U.S.A. The Kibby Bas in property is located 65 km north of Clayton Valley,
Nevada-U.S.A. The Company believes the property to be highly prospective to host lithium. Subsequent ground
geophysics & gravity surveys, surface sampling and a two hole - 2046 ft. diamond drill program have confirmed the
presence of lithium on Kibby.
In June 2018 ; the Company has updated its land position staking, and now holds 126 x 20 acre additional placer
mineral claims totaling approx. 1,020 hectares ( 2,520 acres) , adjoining the Kibby 16, for a total Kibby Basin land
position (the “Property”) to 2,056 hectares (5,080 acres).
In 50/50 ownership with International Montoro Resources Inc., Belmont has acquired and is exploring joint venture
opportunities for its two significant uranium properties (Crackingstone -982 ha & Orbit Lake – 11,109 ha) in the
Uranium City District in Northern Saskatchewan, Canada
ON BEHALF OF THE BOARD OF DIRECTORS
“James H. Place”
James H. Place
CEO/President
This Press Release may contain forward -looking statements that may involve a number of risks and uncertainties, based on assumptions and judgments of
management regarding future events or results that may prove to be inaccurate as a result of exploration a nd other risk factors beyond its control. Forward looking
statements in this news release include statements about the possible raising of capital and exploration of our properties. Actual events or results could differ
materially from the Companies forward-looking statements and expectations. These risks and uncertainties include, among other things, that we may not be able
to obtain regulatory approval; that we may not be able to raise funds required, that conditions to clo sing may not be fulfilled an d we may not be able to
organize and carry out an exploration program in 2016; and other risks associated with being a mineral exploration and develo pment company. These
forward-looking statements are made as of the date of this news release and, except as required by applicable laws, the Company assumes no obligation to update
these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward -looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Excha nge) accepts responsibility
for the adequacy or accuracy of this news release.