Today, Belmont Resources Inc. announced the next stage of exploration and assessment on its Kibby Basin Lithium Property in Nevada, USA. The positive results from the recently completed Magnetotelluric (MT) survey are the key for the selection of the most prospective locations for the the upcoming drill program.
Last year, ASX-listed Reedy Lagoon Corp. completed MT surveys over its lithium properties in Nevada. The results were positive in identifiying conductive zones below surface, whereas drilling has commenced in early February. As per below chart, the company started a strong upward trend in October 2017 at $0.015 AUD, appreciating by +366% until January 2018 at $0.07 AUD, currently trading at $0.05 AUD and enjoying a market capitalization of $19 million AUD.
Most recently, Belmont has also completed a positive MT survey over its nearby Kibby Basin Property and is getting ready for drilling, whereas Belmont currently has a market capitalization of less than $3 million CAD.
Most interestingly, Belmont´s MT survey has identified conductive zones which appear to be much bigger in size than what Reedy Lagoon has identified with its respective MT surveys. Compare for yourself to find out that Belmont now offers great potential to appreciate impressively over the next weeks, not to speak of when drilling indeed intersects lithium brine pay zones with ecomomic grades:
Reedy Lagoon´s MT surveys showing brine targets (coloured deep blue = 1.0 ohm-m resistivity):
Full size / Big Smoky South Property: Top of target at a depth of 650 m and a vertical thickness of 400 m. Horizontal width is 800 m. A 1,000 m drill hole is planned to test this target. A second shallower target is 350 m to top of formation and has a 300 m vertical thickness. Horizontal width is 350 m. A 600 m drill hole is planned to test this target. Source: Reedy Lagoon Corp.
Full size / Columbus Salt Marsh Property: A deeper, central sub-basin, the top of which is at a depth of 600 m and the bottom approximately 1500 m. The horizontal width is at least 800 m. Source: Reedy Lagoon Corp.
Full size / Alkali Lake North Property: A brine target ... that is approximately 800 m wide, 400 m vertical extent and approximately 700 m to top of formation. The brine target is within a substantial sub-basin up to 1200 m wide located in the middle of the property. Source: Reedy Lagoon Corp.
Belmont´s MT survey showing brine targets (coloured violet = 1.0 ohm-m resistivity and deep blue = 0.14 ohm-m):
Full size / The sub-horizontal conductive layer is mapped from site KB006 to KB048 as a relatively thick layer. It is dipping slightly to the north on this profile. A variation of the depth of the conductive layer along the profile is noted; from near 750 m depth from KB006 to KB020, to 1km depth from KB020 to KB048. This variation is correlates with a variation of the depth of the deep resistive unit, from 1 km depth below KB006 to KB020, to approximately 3 km depth from KB020 to KB048. The variation in depth correlate with the increase of the Basin depth defined from the gravity results (Wright, 2016). Source: Geophysical Report from Quantec Geoscience Ltd.
Full size / View from north of the 3D resistivity values lower than 10 Ohm-m from the 3D MT model. It has clearly mapped a very conductive sub-horizontal unit in the near surface. This conductive unit seems to out-crop near the centre of the grid. It also appears to dip slightly to the North-East. The 3D model displays a potential extension of the conductive zone at depth in the North-East corner of the grid.
Note that Reedy Lagoon is using a different colour scale to show different resistivities / ohm-metres. Pure water is not conductive but salty water, rich in lithium, is very conductive! So an effective method to find/map such brines at depth is to run a current (resistivity) through the ground to hopefully spot conductive zones as these have the best potential to be salty brines enriched with lithium. In general, a resistivity of less than 1 ohm-m indicates a highly conductive brine which is salty and has greatest potential to be enriched with lithium. The West Australian explained the following in an article about Reedy Lagoon in mid-October 2017, about the same time when its share price started a strong upward trend:
"The presence of salt in the water can sometimes be an indicator that the reservoir also plays host to lucrative minerals such as Lithium that were historically dissolved in the water along with the salt. The salt in the water acts as an electrical conductor, the size of which can be measured by above ground geophysical surveys that measure the amount of electrical resistance that a reservoir has. The less the resistance, the higher the conductivity, the higher the salt levels – and where there’s salt, there may well be Lithium, particularly if the brine occurs in a Lithium bearing region. Typically a resistivity of less that one ohm-meter is an indicator of a highly conductive brine which is well endowed with salt and therefore potentially Lithium...
Early this year the company tested the theories contained in the report and had their own bingo moment after their surface based geophysical surveys threw up strong conductors across all three project areas – all with resistivity readings of less that one ohm-metre in some parts. Some conductors occur from just 350m deep and others extend to around 1.5km deep. The center of most low resistivity areas sits at around the 800m to 1000m mark. Most have horizontal widths of approximately 800m and vertical thicknesses from 300m up to around 800m. Reedy believe they have identified large underground salt brines or “conductors” at all three project areas, the question that will now be resolved by drilling, is just how much Lithium is contained within those brines. Management are encouraged by the presence of relatively recent historic volcanic activity in the area and believe this could be the source of both the Lithium and the salt that was historically dissolved by the geothermal heat sources in the region..."
While it´s not clear if a geothermal heat source is anywhere near Reedy Lagoon´s properties, Belmont recently has found great indications that a geothermal systems is active beneath surface of its Kibby Basin Property (see here). The hotter the brine (due to a geothermal system!) the better, because the heat dissolves the lithium within the surrounding rocks and soils. The upcoming drill program at Kibby Basin (and Reedy Lagoon´s properties) will therefore answer 2 important questions: (1) lithium content/grade in the brine (2) the brine temperature.
As Reedy Lagoon has already started drilling in early February, positive drill results (i.e. a discovery) should draw attention also to neighboring Belmont as being the next high potential to make a striking disovery outside the famous Clayton Valley in Nevada. As already noted in the last Rockstone Report "Bingo! Belmont finds striking drill targets for lithium brine deposits at Kibby Basin in Nevada", Belmont is well on track to make a stellar discovery by intersecting lithium-rich brines with the upcoming drill program, potentially bigger and hotter than what Reedy Lagoon may discover with its respective drill programs shortly.
Full size / The Kibby Basin (basin removed topography looking south-southwest; presumably this would be the topography if the basin fill was removed). See also Rockstone Report "The perfect lithium basin?"
Belmont Resources Inc.
Suite 600 - 625 Howe Street
Vancouver, BC, V6C2T6 Canada
Phone: +1 604 683 6648
Shares Issued & Outstanding: 61,767,620
Canadian Symbol (TSX.V): BEA
Current Price: $0.04 CAD (03/13/2018)
Market Capitalization: $2.8 Million CAD
German Symbol / WKN (Frankfurt): L3L1 / A1JNZE
Current Price: €0.019 EUR (03/14/2018)
Market Capitalization: €1.2 Million EUR
Report #8: “Bingo! Belmont finds striking drill targets for lithium brine deposits at Kibby Basin in Nevada”
Report #7: “The Missing Puzzle Piece to Discover Lithium Aquifers in the Kibby Basin of Nevada?”
Report #6: “Belmont on track to eclipse the Clayton Valley”
Report #5: “Belmont getting ready to drill for untapped lithium brines at Kibby Basin in Nevada”
Report #4: “The perfect lithium basin?”
Report #3: “Prominent gravity low identified on Kibby Basin Lithium Brine Property in Nevada”
Report #2: “Dark clouds over Clayton Valley and green lights for Belmonts Kibby Basin Project”
Report #1: “Early Report on Belmont Resources”
Disclaimer: This report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Rockstone Research and Belmont Resources Inc. cautions investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Belmont´s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Belmont´s profile on SEDAR at www.sedar.com. Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds a long position in Belmont Resources Inc. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in Belmont Resources Inc. Note that neither Belmont Resources Inc. nor Zimtu Capital Corp. have reviewed all of the content prior to publication and may not agree with statememts made herein.