the missing puzzle piece to discover lithium aquifers in the kibby basin of nevada?
TRANSCRIPT
December 14, 2017
Report #7Lithium in Nevada, USA
The Missing Puzzle Piece to Discover Lithium Aquifers in the Kibby Basin of Nevada? Drilling the first holes into a lithium prospective basin is a high risk business, because if you miss, or the lithium grades are low, the market tends to punish the company vigorously by selling hard as investors turn their back on the stock and move on to their next gambling frenzy.
On the other hand, this could create an outstanding buying opportunity for those that still believe in the company and know that – in most cases – it’s never the first hole that makes a discovery.
This could very well be true for Belmont Resources Inc. and its Kibby Basin Project in Nevada, 65 km north of the famous Clayton Valley.
In June of this year, the lithium explorer reported assays from its first 2 holes, showing up to 200 ppm lithium in sedi-ments. This was a promising discovery as it made official that there is lithium in the Kibby Basin. However, investors – at that
time – were not looking for “promising” results in sediments, they wanted to see high-grade lithium in aquifers as that’s also the pay zone in the near-by Clayton Valley. So as they did not get what they wanted to see, the stock took a dive at 5 cents and reached a bottom 4 months later at 2.5 cents.
After a recent financing at 3 cents for the next round of exploration, the stock currently trades at 5 cents again. With management and insiders taking the lion’s share of that financing, this may give confidence that they still believe to hit it big time with the next round of drilling.
And today, Belmont made a striking announcement that could be the missing piece of puzzle for the question of where to drill the next couple of holes on its large property to finally discover high grades of lithium in the aquifer pay zone.
Company Details
Belmont Resources Inc.Suite 600 - 625 Howe StreetVancouver, BC, V6C2T6 Canada Phone: +1 604 683 6648Email: [email protected] Issued & Outstanding: 51,160,953
Canadian Symbol (TSX.V): BEACurrent Price: $0.05 CAD (12/13/2017)Market Capitalization: $2.6 Million CAD
German Symbol / WKN: L3L1 / A1JNZE Current Price: €0.027 EUR (12/13/2017)Market Capitalization: €1.4 Million EUR
Chart Canada (TSX.V)
Chart Germany (Frankfurt)
2
hen you have a 27 square kilometer big property, where basically no one ever
conducted any modern exploration to find lithium-bearing aquifers, you need to start somewhere to prove your case that there could be lithium.
So Belmont looked at the Clayton Valley and compared it to the Kibby Basin, and they found a geologic setting similar to the continental brine model ascribed to the Clayton Valley. Then they did a 3D gravity survey over the entire property and found that it has the structure of a perfect lithium basin.
This was followed by 2 “scout-holes“ to find out if there is any lithium in those sediments and to get a first look of the basin‘s geology. Drilling found promising lithium values (up to 200 ppm) in sediments which is a great indication that a near-by aquifer may host much higher grades. With 13 of 25 core samples assaying over 100 ppm lthium, these sediments could very well be a potential source of lithium for the underlying aquifers.
The question then arose where to drill next in order to find the aquifer, respectively the pay zone. A consultant to Belmont, took a deep dive into researching the Kibby Basin and made some striking findings, with the results you can see in today‘s news release.
Originally, he just wanted to put the company‘s property borders on a map, so he looked at some satellite images and started to think outside the box. He obtained more satellite data sets as he had the feeling he was onto something.
Belmont‘s consultant then contacted the USGS and NASA to confirm his theory and soon it became clear that he found the missing puzzle piece. As the images indicate, he may have found the location of the geothermal system – right in the heart of the Kibby Basin. This looks like a big “discovery“ as there is no surface expression of a geothermal system and until now it was not even clear if at all there is a geothermal system on the property.
The above shown image is actually an animation (click here to watch it) showing 8 days of a snow storm in 2016 above the Kibby Basin: Note the snow in red and that over 1 foot of snow was all gone within short time (so the take-away is the Kibby Playa is warm due to a geothermal system).
To make it clear: A geothermal system is the key for a lithium-bearing aquifer and as such the location of the lithium aquifer is likely to be at the same spot.
As Belmont has now found this 1 square kilometer area on its property, where a convergence of anomalies occur, the company is now getting ready to drill into this area to find the lithium-bearing aquifer. Vojtech Agyagos, CEO & President of Belmont, explained today:
“The discovery of this area of hydro-thermal indicator minerals representing approximately (1) square/Kilometer of our 27 square kilometer Kibby Ba-sin, Nevada property will become the center of our continued exploration. This area hosted the highest Lithium surface samples as well and is the site of our proposed third drill hole. Our 2017 drill program discovered both water (fresh) and up to 200ppm lithium in the core in the Eastern side of the property about 2 kilometers from these Thermal alterations. This geothermal alteration sits above the deepest gravity indicated area from Belmonts’ 2016 Wright Geo-physical ground gravity survey.
WResearch #7 | Belmont Resources Inc.
Belmont, has been reviewing EOSDIS NASA Worldview and the United States Geological Survey (USGS) archived satellite data (1996 -2017) acquired over the Company’s Kibby Basin - Lithium brine exploration project. Archived ASTER/Landsat satellite data collected over the Monte Cristo Valley has identified significant anomalous higher than normal concentrations of clay-mica-hy-drous silica-ferric iron minerals in the north-central playa in nearly the same area as indicated by the ASTER data within the Belmont, Kibby Basin – claim area. ASTER/Landsat class satellite data have been most effective at broadly categorizing surface units that can be considered as proxy for geothermal systems (e.g., sulfates, carbonates, clays) than identifying specific minerals and their mixing components (Taranik, 1988, Sabine et al., 1994, Rowanet al., 2005 and Zhanget al., 2007).
3
Belmont, is presently seeking quotes from geophysical engineering companies for Magnetotelluric (MT), Vertical Electrical Sounding (VES) and Geothermal Probe surveys with a view to isolate the most prospective area to drill for geothermal brine water. This new information will be used, along with the planned electromagnetic resistivity (‘EM’) and possibly seismic survey of the property to pin point the higher aquifer probability targets for the next phase of drilling. The electromagnetic resistivity (‘EM’) survey is expected to be completed early in January 2018.”
The circled areas in both the shown images are basically parts where hydrothermally altered sediments occur on the playa of the Kibby Basin. The presence of these indicate that, at one time, the hydrothermal water reached the surface (probably in form of a geyser or hot spring). Also, they indicate the proximity of faults and fissures.
With the first 2 holes, Belmont tried to drill into some indicated (ground survey) faults on the eastern side of its property.
Now with this new information (hydrothermal alteration), they may have found the missing piece of the puzzle to start drilling into the right spot of the basin to finally make a striking discovery (i.e. drilling into a lithium-rich aquifer).
The USGS wrote a report in 2013 outlining what you would need to find a lithium brine deposit – all producing lithium brine deposits share a number of first-order characteristics:
(1) arid climate; (2) closed basin containing a playa or salar; (3) tectonically driven subsidence; (4) associated igneous or geothermal activity; (5) suitable lithium source-rocks; (6) one or more adequate aquifers; and (7) sufficient time to concentrate a brine
With the upcoming geo probing and MT/VES survey – and the latest knowledge acquired from satellite data – Belmont is on track to find (6) one or more adequate aquifers.
Research #7 | Belmont Resources Inc.
Principals and applications of indirect methods which involve using hydrothermal minerals as a proxy of geothermal systems were discussed by Hunt, 1977; Clark, 1999; Greenet al., 1998; Martini et al., 2004 and Vaughan et al., 2003 and 2005; whereas the direct thermal indices and associated applied methods were discussed in Mongillio, 1994, Hackwell et al., 1996; Haselwimmer et al., 2011; Rowan et al., 2003; Coolbaugh et al., 2007. Well-established methods in multispectral, hyperspectral analysis, in conjunction with modern subsurface geophysics, advanced imagery from space-based and airborne sensor systems, permits their direct and immediate application in geothermal energy prospecting and their evaluation using both thermal signature, and spectral signatures indices (Coolbaugh et al., 2007; Gupta and Roy 2007) (Prospecting for geothermal energy through satellite based thermal data.)
4 Research #7 | Belmont Resources Inc.
Previous Coverage
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 Belmont’s Kibby Basin”
Report #1: “Early Report on Belmont”
Click on chart (or here) for updated version
5
Disclaimer and Information on Forward Looking Statements:All statements in this report, other than state-ments of historical fact should be considered forward-looking statements. Much of this report is comprised of statements of projection. State-ments in this report that are forward looking include that Belmont Resources Inc. (“Belmont”) or any other company or market will perform as expected; that the encountered lithium grades were a promising discovery and an indication that a near-by aquifer may host similar or even higher grades; that the lithium-bearing sedi-ments could very well be a potential source of lithium for the underlying aquifer; that explora-tory drilling in the Clayton Valley typically also encounters lithium-enriched sediments; that Belmont is getting ready to precisely locate underlying aquifers (if these exist); that Belmont made a striking announcement today that could be the missing piece of puzzle for the question where to drill next to finally discover high grades of lithium in the aquifer pay zone; that connecting the dots may get rewarded generously with the upcoming buying frenzy that this lithium explorer could generate with the next round of drill results, when it becomes clear that they are onto something big; that a geothermal system is the key for a lithium-bear-ing aquifer and that the location of the aquifer is likely to be at the same spot; that Belmont will soon make a striking discovery; that all produ-cing lithium brine deposits share characteristics; 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 antici-pated 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 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, 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 cap-ital 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 carries on business; operating or tech-nical 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 state-ments. 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 state-ments made in this report.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, the author’s employer Zimtu will benefit from appreciation of Belmont’s stock price. The author also owns shares of Belmont, 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 has not reviewed all of 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. If you do not agree to all of the Disclaimer, 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.
Author Profile and Contact
Stephan Bogner (Dipl. Kfm. FH)Rockstone Research 8260 Stein am Rhein, [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.
Rockstone is specialized in capital markets and publicly listed companies. The focus is set on exploration, development, and production of resource deposits. Through the publication of general geological basic knowledge, the individual reports receive a background in order for the reader to be inspired to conduct further due diligence. All reports are being made accessible free of charge, whereas it is always to be construed as non-binding educational research and is addressed solely to a readership that is knowledgeable about the risks, experienced with stock markets, and acting on one’s own responsibility.
For more information and sign-up for free newsletter, please visit:
www.rockstone-research.com
Research #7 | Belmont Resources Inc.