- Project generator with exploration-stage projects with historical workings
- Proven properties located in the mining-friendly jurisdictions of Colorado and Nevada
- Debt-free, cash on hand and experienced management team at the helm
What Viscount Mining does:
Viscount Mining Corp (CVE:VML) (OTCMKTS:VLMGF) is building a strong portfolio of mineral assets in mining-friendly jurisdictions in the United States.
The Vancouver-based explorer is a project generator, which is essentially a junior company acquiring early-stage exploration properties to advance to a point where it becomes attractive to a larger company.
Viscount’s particular modus operandi is to identify projects with advanced exploration, underground development or past production. It then enters into partnerships for further development and exploration.
The current crown jewel in Viscount’s current portfolio is the Silver Cliff property in Colorado, located 44 miles southwest of Pueblo Colorado with year-round access to the project via a paved road.
Silver Cliff consists of 96 claims on nearly 2,100 acres of land where high-grade silver, gold and base metal production occurred in the late 19th century. Geologically speaking, the property is thought to lie on a large mineral system that increases the prospect’s potential to host a number of precious and base metal deposits.
What’s particularly attractive about Silver Cliff are the grades. Historically, grades have run as high as 2,125 grams per ton (g/t) silver over 13.4 metres, which is equivalent to 68 ounces per ton.
Adding even more upside to Viscount’s portfolio is its Cherry Creek project in Nevada, near the well-known mining town of Ely. The Cherry Creek claims currently consist of over 400 unpatented and patented claims as well as mill rights.
Numerous exploration and mining activities were conducted in the past at Cherry Creek up to 1964. Activities were primarily focused on silver and gold as well as base metals and tungsten. Today, Cherry Creek is located on the same trend as major gold projects that are home to big-name neighbours such as Kinross Gold, Newmont Goldcorp and Agnico Eagle.
With drill results in hand in a highly prolific, proven mining region, Viscount Mining is poised for discovery in the United States.
How is it doing:
Viscount Mining has been pushing forwards with exploration at the start of 2021.
At the Silver Cliff property in Colorado, at the start of January, Viscount reported results from the first hole of ten holes sunk in its 2020/2021 drill campaign, which included an intersection of 99.6 grams per ton (g/t) silver over 21.6 meters in one hole.
The aim behind the drilling programme was to expand the previously defined Kate resource, with the objective of adding to an earlier resource estimate of the KSR/Kate deposit and to further outline the South Kate high-grade zone and assess any other promising targets.
Later, at the end of January, the company said the second phase of work will be focused on expanding the silver resource to the east, continue to define the Kate East zone, with additional drilling at the Passiflora target. Viscount confirmed that the silver assay results from last year's drilling at the Kate resource area had been completed, and "met and exceeded" its expectations. Four holes were drilled east of the Kate decline with very encouraging results, finding evidence that the higher-grade zone may be continuous, the company said.
And on February 25, it said that soil sampling had begun at Silver Cliff, to be followed by a ground magnetic survey as the company kicks off this year's field season. A third phase of drilling will begin in mid to late summer 2021, with targets being developed, based on the spring program.
Meanwhile, at Cherry Creek in Nevada, at the beginning of January, the company announced that it had entered into an exploration earn-in agreement with a wholly-owned subsidiary of Centerra Gold Inc, with Viscount to be the project manager.
Under the terms of the agreement, Centerra has the right to acquire a 70% interest in the property through making annual payments totaling US$250,000 and spending US$8 million on mineral exploration costs on the property over four years. If Centerra's option vests, then Viscount and Centerra will enter into a joint venture agreement: Centerra would hold an initial interest of 70% in the JV, including the property and any properties in the area of interest, and Viscount would hold an initial interest of 30%, including the property and any properties in the area of interest.
At the start of February, Viscount said it had started soil sampling at Cherry Creek. It noted that a five-person crew is starting to collect between 700 and 1,000 soil samples from the property. The company said initial exploration work will focus on filling in and expanding previously-completed soil grids on the north, east and west portions of the property. The full program is expected to take around three weeks to complete, dependent on weather and ground conditions, it added.
In October 2020, Viscount had increased its ground at the Cherry Creek project by staking a further 24 claims in the southeast section, with the asset overall comprising 293 unpatented and patented claims as well as mill rights and spanning over 2,442 hectares. It includes more than 20 past producing mines and the new claims were next to an area of prolific historic gold and silver mining, the company said.
On the financing front, in July 2020, Viscount closed an oversubscribed private placement that raised C$5.75 million to be used mainly for the exploration work on Silver Cliff. The company had originally planned to raise C$4 million but filed a price reservation form to increase the size to $5 million and sought approval for an over-allotment of 15% for total proceeds of $5.75 million.
The financing consisted of just under 24 million units priced at C$0.24, with each unit consisting of one share and one warrant exercisable at $0.32 for a two-year term.
Inflection points:
- Results from fieldwork at Silver Cliff property in Colorado
- News from soil sampling at Cherry Creek in Nevada
- Further details of Centerra earn-in progress
What the boss says:
In January's Centarra earn-in deal announcement, Mark Abrams, director and vice president of exploration at Viscount commented: "Cherry Creek is one of the few remaining under-explored mining districts with geological attributes to the formation of both those in production at nearby Kinross's Bald Mountain Mine, and Newmont's Long Canyon Mine. We are excited to have Centerra bring their exploration and financial strength and join us in exploring the Cherry Creek project."
Contact the author at jon.hopkins@proactiveinvestors.com