Research #3 - Belmont Resources Inc.

June 28, 2016
Research #3
Lithium in Nevada
Company Details
Belmont Resources Inc.
Suite 600 - 625 Howe Street
Vancouver, BC, V6C2T6 Canada
Phone: +1 604 683 6648
Email: [email protected] (Gary Musil)
www.belmontresources.com
Shares Issued & Outstanding: 32,628,453
A recent gravity survey review on Kibby Basin revealed a distinct anomaly in the
middle of Belmont‘s Kibby Basin Property, 65 km north of the Clayton Valley
Prominent gravity low identified on Kibby
Basin Lithium Brine Property in Nevada
On June 10, Belmont Resources Inc. announced to have started the
phase-1 exploration program on its 100% owned Kibby Basin Project
in Nevada’s Monte Cristo Valley, 65 km north of the Clayton Valley.
Wright Geophysics completed a geophysical review and work proposal
program. A few days later, Belmont announced to have engaged Magee
Geophysical Services to conduct a detailed gravity survey to map the
central basin so as to permit generation of a 3D model of the basin
fill; providing the coverage to determine basin depth and delineate the
structural setting. Last week on June 23, Magee completed the gravity
survey, whereas Wright is currently interpreting the data and developing
a 3D interpretation from the data. The results, expected any day now,
will help outline the optimal testing areas for a direct push (Geoprobe)
drilling and sampling program, which is expected to be announced
shortly thereafter. With a current market capitalization of less than $3
million, the company may generate substantial shareholder value in case
the upcoming brine drilling turns out positive, as Rockstone anticipates.
Chart
Canada (TSX.V)
Canadian Symbol (TSX.V): BEA
Current Price: $0.07 CAD (June 27, 2016)
Market Capitalization: $2 million CAD
Chart
Germany (Frankfurt)
German Symbol / WKN: L3L1 / A1JNZE
Current Price: €0.061 EUR (June 27, 2016)
Market Capitalization: €2 million EUR
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Research #3 | Belmont Resources Inc.
B
elmont has received a Geophysical Review and Work Proposal Report from James L.
Wright of Wright Geophysics on June 6,
2016; including the following remarks:
“Figure 2 presents the complete Bouguer
anomaly of gravity at 2.50 g/cc over the
topography. The current property position
is shown as a black rectangle. A prominent gravity low, as expected, correlates
with the basin center flanked by highs in
the outcrop areas to the east and west.
Average station spacing is variable but
on the order of two kilometers with significant gaps. Such coverage is adequate
for large scale analysis but completely
inadequate for property scale work...
Geology over the property and surrounding area is covered by Ferguson et. al
(1953) in the Coaldale 15’ quadrangle
geologic map. Figure [3] presents the
portion of the geologic map covering the
property and geophysical data sets. Three
rock units are labelled in the area; Ji - Jurassic intrusions, Tol - older volcanics, and
QTb - young basalt units. A large area of
QTb is mapped within the basin near the
southern lateral fault. The occurrence
of a large area of QTb within the basin
indicates additional QTb could well be
encased within the basin fill and possibly
play a role in ponding and/or controlling
the distribution of lithium brines.
Figure 1: CBA Gravity Looking Northeast
The genetic model for the central basin
suggests additional normal faults should
be present forming a number of steps
down into the basin on both the east
Figure 2: CBA Gravity @ 2.50 g/cc and Station Posting over Topography [Belmont’s
property is represented by the black box]
Figure 3: Coaldale 15’ Quadrangle
Geologic Map
and west sides. Clearly, a strong density
contrast exists between basement rocks
(ie. Ji, Tol, etc.), and the basin fill. The
detailed gravity survey is recommended
as the next stage to map the central
basin in sufficient detail so as to permit
generation of a three dimensional model
of the basin fill.”
Ernest L. Hunsaker III, Belmont’s Qualified
Person, stated on June 10:
“Phase 1 results will determine how
best to execute the drilling proposed
in Phase 2.”
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Research #3 | Belmont Resources Inc.
Figure 4: CBA Gravity overlain by Interpretation
INTERPRETATION
An interpretation is presented over the
gravity and airborne magnetics in Figures
[4] and [5] respectively. Structures are depicted with dashed lines with line width
indicating magnitude. Sense of movement
is indicated with either arrows or up down
labels. Interpreted outlines of the Ji and
Tol are denoted with colored polygons.
Finally, mapped outcrop of the QTb are
depicted with brown hatched polygons.
Examination of the gravity reveals a distinctive pattern to the basin. That is, the
northern portion trends northwest-southeast with a relatively shallow amount of
basin fill. The central portion of the basin
rotates to north-south and deepens considerably; finally, the southern portion of
the basin shallows and returns to a northwest-southeast orientation. Hunsaker
(2016) notes the complex structure evolution of the area with supporting references to Hardyman et. al. (1990), Oldow
(2003) and Oldow et. al. (2009). This complex basin geometry can be accounted for
by a left lateral shear couple as depicted
with the two west-northwest directed
structures labeled with sense of displacement arrows. These structures bound the
north and south edges of the central basin.
Figure 5: RTP Magnetics overlain by Interpretation
Between the two lateral displacement
structures is a zone of extension typified
by at least four high angle normal faults
oriented approximately north-northeast.
High angle normal displacement along
these structures is interpreted to have
formed the main central basin. Such fault
geometry is indicative of an overall trans
tensional environment and termed a pullapart basin. Figure [6] shows a three dimensional block diagram of such a basin’s
formation.
Figure 6: Example of Left Lateral Pullapart Basin
A large area of QTb is mapped within the
basin near the southern lateral fault. The
occurrence of a large area of QTb within
the basin indicates additional QTb could
well be encased with the basin fill and
possibly play a role in ponding and/or controlling the distribution of lithium brines.
interpreted, which is down faulted into the
basin by two of the north-south directed
normal faults. On the east side of the main
basin, a large area of Tol is mapped which
correlates relatively well with strong magnetic values. An interpreted distribution
based on the magnetics is depicted a defined with a square hatched polygon.
The RTP magnetics are presented in Figure
[5] overlain by the interpretation. Prominent magnetic highs correlate with the Ji
and Tol rock units. As noted by Albers and
Stewart (1972), large bodies of Jurassic intrusions occur in this portion of Nevada as
eastern outliers to the main Sierra Nevada
batholith. Depicted on the figures is an interpreted distribution of the Ji based upon
the magnetics. A large extension to the
east and south from the small outcrops is
As with the Ji to the west, the Tol is also
down faulted into the basin. Based upon
this interpretation, it is reasonable to infer
the Ji and Tol; plus lesser contributions
from the Dunlap, Luning, and Excelsior
formations form the bottom of the basin.
Filling the basin would be the less dense
Esmeralda formation (Te) and Quaternary
material including gravels and playa deposits. As noted previously, bodies of QTb
could well be found within the gravel fill.
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Research #3 | Belmont Resources Inc.
SUMMARY AND WORK PROPOSAL
The interpretation indicates a genetic
model for the central basin in which
north-northeast directed normal faults
accommodates left lateral extension by
forming a pull-apart basin. These normal
faults form the east and west boundaries
to Kibby Basin. Furthermore, the genetic
model suggests additional normal faults
should be present forming a number of
steps down into the basin on both the
east and west sides. Clearly, a strong
density contrast exists between basement rocks (i.e. Ji, Tol, etc.) and the basin
fill (i.e. Te, Qal). A detailed gravity survey
is recommended to map the central basin
in sufficient detail so as to permit generation of a three dimensional model of the
basin fill.
Figure [7] shows proposed gravity stations
over topography. A total of 433 stations
are involved. These include 500 m square
grid coverage over the central basin and
property flanked to the north and south
by1000 m staggered grid coverage. Further afield are regional stations shown
in blue along available roads. Regional
stations are required to determine the
large scale trend in which the detailed
coverage sits. The regional stations are
provision pending a review of the public
domain USGS data, which could replace
some of the stations. Once the gravity
data are acquired, a three dimension of
the Kibby Basin will be constructed.”
Source: James L. Wright (M.Sc.) in “Kibby
Basin Property Geophysical Review Work
Proposal” on June 6, 2016
Figure 7: Proposed Gravity Stations over Topography
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Above: A few days ago, a gravity survey was completed on
Belmont’s Kibby Basin Property (picture shows Site 1140)
Below: Gravity Survey Base Station
Right: Black and white satellite shot of the Kibby Basin (flat/center
of photo)
Research #3 | Belmont Resources Inc.
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Research #3 | Belmont Resources Inc.
Above: Gravity survey on Belmont’s Kibby Basin Property (picture shows Site 1140); Below left: Capped historic oil well – 2.4 km
(1.5 miles) southwest of Belmont’s property in Monte Cristo Valley; Below right: Dunham Mill Well (Dry) – 1.3 km (0.8 miles)
northwest of Belmont’s property in Monte Cristo Valley
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Research #3 | Belmont Resources Inc.
Above: Kibby Flat Well – 4.2 km (2.6 miles) south of Belmont’s property in Monte Cristo Valley
Left / below: Microwave well – 0.8 km (0.5 miles) south of Belmont’s
property in Monte Cristo Valley
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Research #3 | Belmont Resources Inc.
Looking north at Belmont’s Kibby Basin Property from Basalt Hills south of property:
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Research #3 | Belmont Resources Inc.
Above and below: Looking easterly from Tiffany Mine – Kibby Property covers playa in valley bottom
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Research #3 | Belmont Resources Inc.
MANAGEMENT
Vojtech Agyagos
(President & Director)
Mr. Agyagos has more than 25 years of
management and financial consulting
experience and has served as an officer
and director on numerous public
companies since 1982. This experience
has resulted in his managing of
exploration projects in South America,
Eastern Europe (Slovak Republic) in
oil/gas and mineral exploration, and
British Columbia, Quebec, Labrador
and Ontario (Canada). Mr. Agyagos has
served as President and Director of
Belmont since December 1996.
Gary Musil
(Secretary, CFO, Director)
Gary Musil has more than 30 years of
management and financial consulting
experience and has served as an officer
and director on numerous public
companies since 1988. This experience
has resulted in his overseeing of
financial aspects and expenditures
on exploration projects in Peru, Chile,
Eastern Europe (Slovak Republic), and
British Columbia, Ontario, Quebec
and New Brunswick (Canada). Prior
to this, he was employed for 15 years
with Dickenson Mines Ltd. and KamKotia Mines Ltd. as a Controller for the
producing silver/lead/zinc mine in the
interior of British Columbia in Canada.
Jake Bottay
(Director)
Jake Bottay is a graduate of Simon
Fraser University, earning his Bachelor
of Arts Degree in 1972. Since 1980, Mr.
Bottay has been responsible for project
co-ordination, financing, contract
negotiations, audit committees and
public relations with a number of junior
exploration companies. While serving
as a Director or Officer on numerous
public companies, Mr. Bottay has gained
valuable experience in doing business
in South America, Europe and Canada.
Roger Agyagos
(Director)
Mr. Agyagos has a Diploma in
Management Systems from BCIT. Since
1995 he has been Vice President for a
private BC company providing office
management and financial consulting
services to various private and public
companies. Mr. Agyagos assists with
daily correspondence, office services,
preparation of news releases and
financial statements.
a number of public companies will
provide a significant contribution to the
Company at this stage of exploration
and development.
Dusan Berka
(Director)
Research #2: “Dark clouds over Clayton
Valley and green lights for Belmonts Kibby
Basin Project” (May 30, 2016)
Mr. Berka (P.Eng.) has over 40 years
of international business experience
spanning Europe and the Americas
with extensive experience in the
finance, marketing and administration
of public companies, having served
as a Director and Officer of various
public companies traded on the TSX,
TSX Venture and NASDAQ exchanges.
A graduate engineer with a M.Sc. (Dipl.
Ing.) degree from Slovak Technical
University, Bratislava, Slovakia (1968),
Mr. Berka has been a member of the
Association of Professional Engineers
and Geoscientists of British Columbia
since 1977.
James H. Place
(Advisory Board)
Mr. Place, of Delta, B.C. is a registered
Professional Geoscientist (P.Geo.) in
the Province of B.C. (1992) and in this
function has worked for government
and private industry as a consultant for
24 years including engineering groups,
environmental assessment specialists,
and private mineral developers. His
experience of providing support to
government and private organizations
includes property assessment, project
planning, management, supervision,
and administration for all types
of engineering and development
projects. His experience of providing
management and directorship on
ANALYST COVERAGE
Research #1: “Early Report on Belmont
Resources” (April 13, 2016)
Belmont Resources Inc. (TSX.V: BEA;
Frankfurt: L3L1) is an emerging resources
company engaged in the acquisition,
exploration and development of mineral
properties; in Canada and USA. The
company has recently entered into
an property acquisition agreement
to acquire 16 unpatented association
placer mining claims, representing 1,036
hectares (the “Kibby Basin Project”) in the
Monte Cristo Valley, Esmeralda County,
Nevada, approximately 65 km north of
Clayton Valley. Belmont has previously
acquired 4 claim blocks comprising
2,252 hectares located within the Abitibi
Harricana-Turgeon volcanic greenstone
belt of Northwestern, Quebec. This
belt hosts several world class deposits
that have produced both gold and base
metals. Belmont holds 50% interest in
12,841 hectares of uranium properties
located in the Uranium City region of
North Saskatchewan. Belmont is focused
on the development of these projects
through joint ventures, whereby
Belmont recognizes exploration activity
and minimizes cash commitments.
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Disclaimer and Information on
Forward Looking Statements:
All statements in this report, other than statements of historical fact should be considered
forward-looking statements. Much of this report is comprised of statements of projection.
Statements in this report that are forward
looking include that Belmont Resources Inc.
or any other company or market will perform
as expected; that Belmont Resources Inc.
will complete the recently announced Kibby
Basin Property transaction; that Belmont Resources Inc. or its partner(s) can and will start
producing and selling any kinds of products;
that the company can raise sufficient funds
for a transaction, exploration and corporate
matters; that any of the mentioned plans,
comparisons with other companies, regions
or numbers are valid or economic. Such statements involve known and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially
from those anticipated in these forward-looking statements. Risks and uncertainties respecting lithium and resource companies are
generally disclosed in the annual financial or
other filing documents of Belmont Resources
Inc. and similar companies as filed with the
relevant securities commissions, and should
be reviewed by any reader of this report. In
addition, with respect to Belmont Resources
Inc., a number of risks relate to any statement
of projection or forward statements, including among other risks: the receipt of all necessary approvals and permits; the ability to
conclude a transaction to start or continue
exploration; uncertainty of future market
regulations, capital expenditures and other
costs; financings and additional capital requirements for exploration, development,
construction, and operating of a facility; the
receipt in a timely fashion of further permitting for its legislative, political, social or
economic developments in the jurisdictions
in which Belmont Resources Inc. carries on
business; operating or technical difficulties in
connection with production or development
activities; the ability to keep key employees,
joint-venture partner(s), and operations financed. There can be no assurance that such
statements will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such
statements. Accordingly, readers should not
place undue reliance on forward-looking information. Rockstone and the author of this
report do not undertake any obligation to
update any statements made in this report.
Research #3 | Belmont Resources Inc.
Disclosure of Interest and
Advisory Cautions:
Nothing in this report should be construed
as a solicitation to buy or sell any securities
mentioned. Rockstone, its owners and the
author of this report are not registered
broker-dealers or financial advisors. Before
investing in any securities, you should consult
with your financial advisor and a registered
broker-dealer. Never make an investment
based solely on what you read in an online
or printed report, including Rockstone’s
report, especially if the investment involves
a small, thinly-traded company that isn’t
well known. The author of this report is
paid by Zimtu Capital Corp., a TSX Venture
Exchange listed investment company. Part
of the author’s responsibilities at Zimtu is to
research and report on companies in which
Zimtu has an investment. So while the author
of this report is not paid directly by Belmont
Resources Inc., the author’s employer Zimtu
will benefit from appreciation of Belmont
Resources Inc.’s stock price. The author also
owns shares of Belmont Resources Inc. and
Zimtu Capital Corp. and thus would also
benefit from volume and price appreciation
of its stocks. Thus, multiple conflicts of
interests exist. Therefore, the information
provided herewithin should not be construed
as a financial analysis or recommendation
but as advertisement. The author’s views
and opinions regarding the companies
featured in reports are his own views
and are based on information that he has
researched independently and has received,
which the author assumes to be reliable.
Rockstone and the author of this report do
not guarantee the accuracy, completeness,
or usefulness of any content of this report,
nor its fitness for any particular purpose.
Belmont Resources Inc.has not reviewed the
content of this report prior to publication.
Lastly, the author does not guarantee that
any of the companies mentioned in the
reports will perform as expected, and any
comparisons made to other companies may
not be valid or come into effect.
Please read the entire Disclaimer carefully.
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do not access this website or any of its pages
including this report in form of a PDF. By using
this website and/or report, and whether or
not you actually read the Disclaimer, you are
deemed to have accepted it. Information
provided is educational and general in
nature.
Analyst Profile and Contact
Stephan Bogner (Dipl. Kfm. FH)
Mining Analyst
Rockstone Research
8050 Zurich, Switzerland
+41-44-5862323
[email protected]
Stephan Bogner
studied at the
International School
of Management
(Dortmund,
Germany), the
European Business
School (London)
and the University of Queensland
(Brisbane, Australia). Under supervision
of Prof. Dr. Hans J. Bocker, Stephan
completed his diploma thesis (“Gold In
A Macroeconomic Context With Special
Consideration Of The Price Formation
Process”) in 2002. A year later, he
marketed and translated into German
Ferdinand Lips‘ bestseller („Gold Wars“).
After working in Dubai for 5 years, he
now lives in Switzerland and is the CEO of
Elementum International AG specialized
in duty-free storage of gold and silver
bullion in a high-security vaulting facility
within the St. Gotthard Mountain Massif
in central Switzerland.
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