Friday 21st July 2017

Resource Clips


Nevada’s new-era fuel

Gary Musil sees Clayton Valley similarities in Belmont Resources’ Kibby Basin lithium project

by Isabel Belger

Isabel Belger

Isabel Belger

Isabel: I would like to introduce Gary Musil, CFO and director of Belmont Resources TSXV:BEA. Hi Gary, it is a pleasure to talk to you again.

Gary: Likewise, always a pleasure to talk to you.

Isabel: To get started, tell us a little bit about your background and how you got involved with Belmont Resources.

Gary: Belmont was a client of mine, and in 1992 they asked me to get more involved by joining the board of directors and later as a full-time chief financial officer in 1999.

Isabel: Belmont Resources has two different locations that you are involved with. Could you tell us a bit more about these two?

Gary: Belmont holds 50% interest in a large uranium land package (12,841 hectares) in the northern Athabasca Basin near Uranium City, Saskatchewan, Canada. Approximately $2 million was incurred on the claims from magnetic, radiometric, electromagnetic and radon gas surveys through to a successful 20-hole diamond drill program totalling 3,075 metres. The project is available for a joint venture partner or acquisition. Belmont’s current focus is on its 2,760-hectare Kibby Basin-Monte Cristo Valley, Nevada lithium project.

Isabel: So your focus is on the Kibby Basin lithium project. What makes that project so appealing?

Gary: The demand and price of lithium continues to increase as we move into a new era of electric vehicles and other technology that is requiring lithium. In addition, we are near the construction of a large facility, the Tesla Motors Gigafactory #1, near Sparks, Nevada, which will be a huge consumer of the end product. Secondly, expansion of a large electric bus factory in California to the south will also see increased consumption of lithium production for batteries. Furthermore, our Kibby Basin hosts several key features that are similar to the nearby and only operating lithium mine in North America, the area at Silver Peak-Clayton Valley, Nevada.

Gary Musil sees Clayton Valley similarities in Belmont Resources’ Kibby Basin lithium project

Lithium assays from last spring’s campaign have
Belmont Resources returning for additional geophysics and drilling.

Isabel: What is the most exciting thing about the Kibby Basin property up to now—what work have you accomplished there?

Gary: We commenced last year with all the baseline work, such as a NI 43-101 geological technical report, followed by a ground geophysical survey and then a detailed gravity survey to map the central basin. This generated a 3D model of the basin which provided the coverage to enhance the potential of the Kibby Basin to host a lithium-bearing brine structure.

The basin model revealed the basin to be in the order of 4,000 metres deep and approximately 7.4 kilometres long. In June Belmont drilled two diamond drill core holes, KB-1c to 548 feet [167 metres] on the eastern basin-bounding fault and KB-2c to a depth of 1,498 feet [457 metres] in the playa-dry lake bed, in the area.

The company was pleased with the core sample assays, to discover the presence of lithium ranging from 70 ppm to 200 ppm lithium with 13 of 25 core samples assaying over 100 ppm lithium, indicating that the sediments could be a potential source of lithium for the underlying aquifers.

Isabel: What are your experiences working in the U.S.A.? It is known that a lot of lithium comes from China and we’ve heard Donald Trump wants to “make America great again.” Has there been any changes in regard to working on a project that could produce lithium in the U.S.A.?

Gary: Belmont’s original mineral project, going back over 30 years ago, was a joint venture in a silver-producing mine in Nevada. We usually contract out work, i.e. geologists, geophysics work, surveys, drilling contractors, etc., to local reputable contractors. This saves costs and develops a good working relationship with the state and county officials. Any changes from the federal and state governments in regards to working on a project that could produce lithium in the U.S.A. should be positive for Belmont Resources. We anticipate governments could add incentives to mining exploration and producing companies to encourage them to expand the mineral resources and sell the end products to factories being built in Nevada, rather than importing lithium and other minerals from foreign countries.

Gary Musil sees Clayton Valley similarities in Belmont Resources’ Kibby Basin lithium project

Thirteen of 25 Kibby Basin core
samples surpassed 100 ppm lithium.

Isabel: What are the plans for the rest of 2017?

Gary: Belmont’s next stage of evaluation will consist of carrying out a further geophysical survey, i.e. electromagnetic resistivity survey and possibly seismic surveys, of the property, which should generate higher aquifer probability targets for further drilling this year.

Isabel: How much money do you have in the bank right now?

Gary: Belmont recently completed a four-million-unit private placement at $0.05 per share complete with a two-year transferable warrant (eight-cent warrant in year one and 10-cent warrant in year two) which generated $200,000. We will continue to raise further financing in order to continue exploration of the Kibby Basin throughout the year.

Isabel: How much of Belmont Resources is held by the management?

Gary: Belmont’s management currently owns 5.5% of the issued and outstanding shares and is increasing its position as demonstrated in participation in the recently completed private placements, as well as exercising of warrant and stock option shares. Including friends, relatives and close associates, these holdings increase to over 25%.

Isabel: What do you like about the mineral exploration business?

Gary: The anticipation of drilling results and then the discovery of minerals in a new area is always exciting. Also, travelling to new areas of the world and meeting new people there.

Isabel: What is your favourite commodity and why?

Gary: Belmont has explored for silver, antimony, gold, uranium, as well as oil and gas. Lithium will be my favourite for years to come, as I see the uses of this commodity expanding, as technology continues to develop and expand along with it.

Gary Musil sees Clayton Valley similarities in Belmont Resources’ Kibby Basin lithium project

Gary Musil, CFO/director
of Belmont Resources

Fun facts

Your hobbies: Golf, cycling, hiking

Sources of news you use: Canadian Broadcasting Corporation (CBC) and CNN through TV and the Vancouver Sun/Financial Post newspapers

Your favourite airport: Vancouver International Airport and Phoenix, Arizona, as that usually means a golf vacation during the winter months

Your favourite tradeshow: Outdoor Recreation and Golf Show in Vancouver

Favourite commodity besides the ones in your company: Gold, especially placer gold

People you’d most like to have dinner with: Ha—Fred Couples, senior professional golfer; So Yeon Ryu, ladies’ professional golfer; Shania Twain, country music star; and of course having dinner with my wife in many new places in the world where we have been and not been to yet

If you could have a superpower, it would be: Healing


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