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Belmont Resources/MGX Minerals receive “milestone” water rights permit, await assays from Nevada lithium project

by Greg Klein | March 21, 2019

Considered a milestone for two companies pursuing lithium, a recently granted water rights permit might be the first of its kind for Nevada. Belmont Resources TSXV:BEA and MGX Minerals CSE:XMG received the permit to extract up to 943.6 million U.S. gallons of water annually from the Monte Cristo Groundwater Basin for brine processing and potential production of lithium compounds on their Kibby Basin property. Some 91% of the water will be returned to the source through injection wells or infiltration galleries, the companies stated.

Belmont Resources/MGX Minerals receive “milestone” water rights permit, await assays from Nevada lithium project

Assays are pending from winter drilling
on the Belmont/MGX Kibby Basin project.

The news follows a winter drill campaign that reached 256 metres into lakebed sediments in hole KB-4, testing a potential fault where geophysical and geological analysis suggests geothermal activity might have brought concentrations of dissolved minerals close to surface.

The team currently has logging and sample preparation from drill cuttings underway, as well as water sampling from a layer near the bottom of the hole. Assays will follow.

Some 2,300 metres southwest of KB-4, KB-3 produced results averaging 393 ppm lithium over 42.4 metres and 415 ppm over 30.5 metres, reaching a high of 580 ppm.

Having spent $300,000 so far, MGX has earned 25% of the project and may increase its interest to 50% with another $300,000 of work. The 2,056-hectare Kibby Basin property sits 65 kilometres north of Albemarle’s (NYSE:ALB) Silver Peak mine, North American’s only lithium producer.

In northern Saskatchewan, Belmont has a 50% stake in two uranium properties, with International Montoro Resources TSXV:IMT holding the remainder.

Subject to exchange approval, Belmont expects to close a private placement first tranche of $67,500. In July the company closed a private placement totalling $375,000.

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