Vojtech Agyagos, President of Belmont Resources Inc. (“Belmont”) (TSX.V: BEA), and Gary Musil, President of International Montoro Resources Inc. (“Montoro”) (TSX.V:IMT) announces that Belmont and Montoro have optioned a 50% interest in their jointly owned Crackingstone uranium property to Merrex Gold Inc. (“Merrex”) (TSX.V:MXI) and have acquired a 25% interest in the West Voisey’s Bay Joint Venture from Merrex .
Crackingstone Property, Uranium City, Saskatchewan
Belmont and Montoro have agreed to option to Merrex a 50% interest in their jointly owned Crackingstone uranium property. Pursuant to the terms of the option agreement, Merrex will issue to Belmont and Montoro 1,200,000 common shares (600,000 shares to each of Belmont and Montoro) and will incur $1,200,000 of exploration expenditures in the first year and may incur a further $2,400,000 of exploration expenditures in the second year to earn up to 50% interest in the Crackingstone uranium property. The shares are subject to a four month hold period, and the option agreement is subject to regulatory approval.
The Crackingstone River uranium property is a 750 hectare claim block located on the north shore of Lake Athabasca, 8 km southwest of Uranium City, Saskatchewan. During 2008 Belmont and Montoro conducted a Phase 1 drill program of 20 holes which tested and confirmed the presence of uranium mineralization for a strike distance of 1800 meters along the Boom Lake Fault and intersected an east-west structure (the North Crackingstone Fault). Hole C-14-08 returned the highest assay results from the 20-hole drill program with 2.087% U3O8 (41.74 lbs./ton) which was included in a 3.0 m intersection assaying 0.36% U3O8 (7.19 lbs./ton), and 1.7m intersection assaying 0.633% U3O8 (12.66 lbs./ton). The same hole also intersected a 0.5m intersection assaying 0.873% U3O8 (17.46 lbs./ton) and, a further 6.8m intersection with assays from 0.003% to 0.09% (1.80 lbs./ton).
West Voisey’s Bay Joint Venture, Labrador
Belmont and Montoro have agreed to acquire one-half of Merrex’s 50% interest (net 25%) interest in the West Voisey’s Bay Joint Venture (“WVBJV”) for $1.2 million. Merrex will retain a net 25% participating interest in the WVBJV. The sale of the WVBJV is an Exempt transaction as defined in the Listings Policies of the TSX Venture Exchange. Upon completion of this acquisition the West Voisey’s Bay (“WVB”) Property will be held in a joint venture between Belmont (12.5%), Montoro (12.5%), Merrex (25%) and Celtic Minerals Ltd. (“Celtic”) (TSX.V:CME)-(50%). Celtic is the WVBJV operator.
The WVB Property is a 451 claim block comprising approximately 112.75 square km in Labrador. The WVB Property borders Inco’s Voisey’s Bay property which contains Inco’s Ovoid deposit, a 31.7 million tonne deposit with grades of 2.83% Ni, 1.68% Cu and 0.12% Co. Production at Inco’s operational Ovoid nickel-copper-cobalt mine began in November 2005. Inco’s Voisey’s Bay deposit is the largest and richest nickel-copper-cobalt discovery in recent history and, in addition to the Oviod deposit, contains a number of advanced exploration targets, including the Reid Brook zone which is located approximately 10 km to the northeast of the WVBJV’s main exploration target area. In a press release dated June 19, 2006, Inco described its exploration results from the Reid Brook zone as being “particularly significant”.
Since 2006 the WVBJV has incurred in excess of $4,000,000 of exploration including infill ground geophysical surveys (magnetotellurics “MT”, UTEM, gravity and magnetics), an airborne gravity gradiometer survey in conjunction with Inco, an ASTER remote sensing and satellite lineament survey and diamond drilling. To date, four significant target areas have been identified on the WVB property. Positive indicators consisting of minor sulphides in mafic rocks, olivine bearing gabbro, and structural zones have been intersected in drilling to date. Going forward, a fresh approach in terms of general exploration including a detailed study of the geological data of Inco’s Voisey’s Bay Deposit area will be initiated.
ON BEHALF OF THE BOARD OF DIRECTORS
“GARY MUSIL”
Gary Musil,
CFO/Director
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