Lithium demand continues to soar. According to Statista, demand is projected to roughly double from 2017 through 2025, from the current level of 234,788 metric tonnes per year. This means the need for new supply. Indeed, Elon Musk has famously stated that he wants his North American Tesla Gigafactory to be supplied with only metals produced in North America.
The Clayton Valley (in Nevada) is already known as one of the world’s most prospective locations for lithium brine deposits. However, only one company is currently producing lithium here. The problem? Water.
Lithium brine operations require extremely arid climates for efficient evaporation operations. But companies also need the legal rights to extract water from the ground beneath their claims. In Nevada, water is carefully managed by the State authorities due to its scarcity, regardless of whether it is fresh or saline (brine). In the Clayton Valley, almost all available water rights have been locked up by Albemarle Corporation, a lithium giant, and one of the “Big 3” who still dominate global lithium production.
Meanwhile, 65 kilometers north of the Clayton Valley is the Kibby Basin Lithium Project in the Monte Cristo Valley, originally situated on a 2,560-acre land package that was optioned to Belmont by Zimtu Capital. Belmont Resources Inc. (TSX: V.BEA, FRA: L3L1, Forum) has expanded this area and now holds a 100% interest in these original claims, plus surrounding land totaling 6,020 acres.
The geology of the Kibby Basin is very similar to the Clayton Valley. What’s different is water availability. BEA is currently in the application process to be granted water rights for the development of Kibby Basin, and management is optimistic that the Company will be able to secure sufficient supplies. As this process continues, Belmont is already actively exploring on this Project.
A detailed Magnetotelluric Survey, carried out in January, 2018 identified a significant, large highly conductive body below the Belmont claims. This anomaly corresponded to a gravity anomaly discovered by the gravity survey (Wright Geophysics – 2016). Preliminary drilling in 2017 confirmed the presence of higher than normal lithium concentrations in the soils above the anomalous body.
Belmont Geologist, Bob Cuffney marking drill site at Kibby property – April, 2018
Stockhouse recently had the opportunity to get an update on BEA’s operations from the Company’s President and CEO, Jim Place.
For newer investors, please introduce Belmont Resources.
Belmont Resources Inc. is a 40+ year old resource company is engaged in the acquisition, exploration and development of mineral properties; in Canada and United States. It trades on both the TSX Venture Exchange under the symbol (TSX.V: BEA) and Frankfurt (L3L1).
While the Company also has other metals projects, the current focus is Kibby Basin. What prompted management to choose Nevada as its base for lithium exploration operations?
The low initial price of entry into a new area with high potential for success that is also in a jurisdiction that is favourable to mining development and also has experience with lithium brine extraction. Lithium markets are at the early stages of a great up-swing in demand. BEA and its advisors looked at the geological and hydrological models of existing successful lithium mines and found a very similar, un-occupied basin in the vicinity. Independent geologists, familiar with the region and lithium exploration confirmed this and recommended the Monte Cristo Valley and specifically the area around Kibby Basin.
The Property Acquisition Agreement with Zimtu Capital Corp is for a 2,560-acre property. How big is this land package today?
The claims are now registered in Belmont’s name and include an additional 620 acres (31 claims) that have been fully registered to BEA. An additional 2840 acres (142 claims) are currently staked on the ground by BEA, bringing the total claimed area to 6,020 acres.
What primary drilling targets have been identified at Kibby Basin to date?
The target is very large – approximately 3.5 X 6 kilometres in size. BEA has selected 6 high potential targets where the anomaly is closest to the surface for drill targets.
(Drill targets as per application to Bureau of Land Management - click to enlarge)
The Company is about to begin its second round of drilling at Kibby Basin. Please expand on the results of your initial drilling.
Our initial drilling took place in the spring of 2017. We advanced two holes in the eastern part of the basin as indicated above. These holes were relatively shallow – not into the anomaly that the MT survey found - and only encountered minor layers of fresh water. Cores taken from these holes were assayed and were shown to contain anomalous levels of lithium between 70 and 200 ppm at some depths. This presence of lithium in the sediments as well as the efficiency of drilling (including easy access, solid surface conditions, and ease of drill penetration) that we experienced are positive factors for planning our next stage of drilling.
(Drilling at Kibby Basin)
In between these two rounds of drilling, Belmont has engaged in additional exploration initiatives. Could you provide further details here?
BEA has carried out a Magnetotelluric (MT) survey of the Kibby Basin and surrounding area including all of the claims. We have also researched new and existing State of Nevada water management data and regulations, investigated drilling and well testing technologies with various exploration geologists and drilling equipment specialists.
Many mining investors may not be familiar with an “MT” electromagnetic survey. Why did BEA select this form of surface exploration?
This method was recommended to Belmont by geologists that had completed successful exploration projects in the Clayton Valley and Argentina where they found a strong correlation between low electromagnetic resistivity values and the presence of significant brine aquifers. MT surveys are a relatively inexpensive, low surface disturbance way to investigate a large area to depths of 3 kilometres or greater. Belmont was pleased with the clarity and accuracy of the results provided in the report of findings by Quantec Geoscience who carried out the fieldwork and analysis.
How much will this additional data assist your technical team as they prepare for this next round of drilling?
With these survey results we are able to locate drill holes at points where the anomaly is closest to the surface and thickest. The MT survey report gave a 3-D representation of underground features which showed the depth and breadth of the target as well as its thickness.
What is the Company’s cash position at present?
Financing is ongoing. The Company is currently anticipating the exercising of up to 10 million warrants at prices of 5 & 6 cents, which would net the Company an additional $500,000+ to finance the first 2-3 holes of the proposed drill program.
What other exploration activities are planned for 2018?
The cores and water samples taken from our drilling will be assayed once drilling is complete. Once the required authority is obtained Belmont will carry out well testing and monitoring.
Over the longer term, what is your vision for Belmont Resources?
From the success of this currently planned drill program, the Company expects to continue financing and further drilling to develop an economic resource.
www.belmontresources.com
FULL DISCLOSURE: Belmont Resources Inc. is a paid client of Stockhouse Publishing.