Silver Cliff, Colorado

Summary

 

The Silver Cliff property lies within the historic Hardscrabble Silver District, and consists of 96 lode claims where high grade silver, gold and base metal production came from numerous mines during the period 1878 to 1894. It is located 44 miles WSW of Pueblo Colorado and has year-around access by paved road. The property underwent substantial exploration between 1967 and 1984 for the purpose of defining mineral inventories. The major explorers were Freeport, Hecla, Homestake, Moly Corp, Coca Mines and Tenneco Minerals.

 

Silver Cliff is thought to overlie a large caldera and porphyry system which increases the prospect’s potential to host a number of deposits from both precious metals to base metals. This has been demonstrated in the mineralogy and grade historically extracted from numerous underground mining operations dating back to the late 1800s and early 1900s.

 

The Company has an exploration target of 40 to 50 million ounces of silver. However, potential quantity and grade is conceptual in nature, as there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

 

History

 

Past drilling at Silver Cliff was designed to test only the flat-lying shallow mineralized bodies with vertical holes but not the High-angle mineralized structures which are the ultimate controls for the emplacement of these mineralized bodies. This indicates that follow-up drill programs need to include angle holes which will cut these mineralized structures, potentially upgrading the deposits.

 

Drilling in the 1980s by Tenneco resulted in a historical pre-feasibility study which formed the company’s decision to put the property into production. Known historical silver grades range from below detection to a high of 2,125 g/t (68 o/t) Ag over 13.4 metres. Known historical gold grades range from below detection to a high of 9.06 g/t (0.29 o/t) Au over 1.2 metres. Plans were halted due to the restructuring of Tenneco after it was sold.

Geology

 

Silver Cliff Property Geology

 

The fall of 2016 drilling shows that the silver mineralization (blue grey) is hosted predominantly by a gently-dipping unit of highly altered rhyolite tuff that was deposited during volcanic activity in the Silver Cliff caldera.The Kate Silver Resource (the “KSR”) at this juncture appears to be the result of extensive alteration by hot hydrothermal silver/lead/zinc-bearing fluids that ascended up along deep seated faults and related fractures. These rhyolite tuff units can be found over a large lateral extent are susceptible to extensive alteration by metal rich hydrothermal solutions and maybe the greatest promise for the KSR in the other deeper unexplored stacked horizons. These may be found associated with high grade epithermal veins that could underlie the KSR.

 

The geology shows that the silver mineralization (blue-grey mineralization) is hosted predominantly by a gently-dipping, silicified carbonate reef that formed during a volcanic hiatus. The Kate Silver Resource at this juncture appears to be the result of simple carbonate replacement by silica-rich, silver/lead/zinc-bearing fluids adjacent to interpreted deep seated epithermal veins. These carbonate rock systems replaced by silicification-associated resources are commonly found over large lateral extents and the greatest promise for the Kate Silver Resource may eventually lie in undiscovered stacked horizons, in combination with high-grade epithermal veins that may underlie the Kate Silver Resource.

 

 

Fieldwork

 

Phase 1 Geologic Mapping & Surface Sampling

 

In July 2016, Viscount commenced Phase 1 exploration program at the Silver Cliff Property in Colorado and begin by identifying historic drill collar locations, surface sampling, detailed geologic mapping, geophysics, and geochemistry.

 

The Company is accessing previous data including locations of historic resource estimates, drill holes, old mines, and exploration targets. Target models for the Property provided in the available information include near-surface blanket-style mineralization and high grade vein deposits which remain generally untested.

 

The Company completed over thirty line-miles of magnetic geophysical surveying. The resulting extensive data package has subsequently been compiled and clearly shows a good correlation between high magnetic responses and silver mineralization encountered by historical drilling. Not only do the high magnetic responses correlate with known silver mineralization, but there also are other high response zones that remain open or untested by drilling. These represent areas to target for discovery of extensions to reported mineral inventories and additional zones of mineralization.

 

The detailed mapping that was completed in October 2016 revealed a previously undocumented, silicified carbonate reef complex. The silicification indicates replacement by hydrothermal fluids. Further, both the Kate Silver Resource and the silicified carbonate reef occupy the same stratigraphic position, directly above an obsidian bed. If the carbonate reef was completely replaced by silica, it would be a very brittle rock, easily shattered by minor tectonic adjustments, creating a breccia whose matrix could become mineralized by hydrothermal fluids from an epithermal or hypothermal feeder vein. The discovery of the carbonate reef complex has yielded a completely different genetic model for the Kate Silver Resource than that proposed by previous geologists.

 

Preliminary results of representative, continuous rock chip sampling and geological mapping at a scale of 1:240 around the perimeter of the 7960 bench in the existing aggregate pit shows that silver, manganese, lead, zinc, gallium, and indium are present. Only recently have indium and gallium become of great importance, with indium used in LCD televisions and computer monitors, and, gallium in medical devices, microwave circuits, high-speed switching circuits and infrared circuits. Semi-conductive gallium nitride and indium gallium nitride produce blue and violet light-emitting diodes (LED lights) and diode lasers.

 

Detailed geologic mapping at a scale of 1:1000 by Viscount geologists done in the vicinity of the Kate Silver Resource suggests that the polymetallic resource may be a combination of epithermal vein and a carbonate replacement deposit. Previous work considered the Kate Silver Resource to be of supergene origin. Supergene processes of enrichment produce ore deposits that occur relatively near the surface as opposed to hypogene processes which occur deeper below the earth's surface and result in deposits that are much later discovered after being exposed by erosion and by drilling.

 

Phase 1 Drilling Program at the Kate

 

In November 2016, a drill program was commenced with the objective of confirming the historical documentation on one of the Silver Cliff deposits known as Kate Silver Resource and will also include angle holes which will test steeply dipping mineralized structures that have the potential for enhancing historical estimates based on vertical holes that tested flat-lying mineralized bodies.

 

In this first phase of core drilling, the Company completed 9 holes totaling 1,502 ft. (457.8 m), and were assayed at ALS Canada Ltd., at their laboratories in Reno, Nevada, and Vancouver, BC.  This program will begin to define the deposits. As stated previously, the Company on the basis of historical estimates has a target of 40 to 50 million ounces of silver on the Property. However, potential quantity and grade is conceptual in nature, as there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

 

In December 2016, Viscount Mining reported high grade silver intercept at its Silver Cliff Property for assay results for confirmation on hole K16-01 drilled at an inclination of -60° averaged 1,778 parts per million (ppm, i.e. g/t and which equals 57.2 oz/t) over 20 ft. (6.1 m) from 60 to 80 ft. (18.3 to 24.4 m) of core interval. Each analyzed sample in this interval represented 5 ft. (1.52 m). The 50 ft. (15.24 m) of mineralized core from 55 to 105 feet (16.76 to 32.00 m) averaged 837.35 ppm (26.92 oz/t). The collar of K16-01is estimated from historic maps and field evidence to be within 4 ft. (1.2 m) of historical drill hole DDH 73-2 for which reports show 1,927.7 g/t silver over 13.5 m (62 oz/t over 44.29 ft.).

 

Based on core logging, the mineralization is associated with silica which has replaced locally vuggy limestone of a reef comprised of fossilized stromatolites. Viscount's technical team attributes the difference in silver values between 2016 drill hole K16-01 and historical drill hole DDH73-2 to the fact that such replacement typically is not uniform. The mineralized siliceous zone intersected by K16-01 is located at a depth from which it could be mined efficiently utilizing open pit techniques, and, because the reef appears to be nearly flat-lying, there is potential for lateral extensions of the mineralization.

 

Given the fact that there is a historical silver resource and PEA completed for the Silver Cliff project, we believe the region containing, and immediately surrounding the Kate Silver Resource is materially underexplored and the historical resource there could be greatly enhanced in the future with just a few strategically placed drill holes.

 

In January 2017, Viscount Mining reported additional high grade silver intersectios of drill holes at its Silver Cliff property from the drill program commenced in mid-November 2016.

 

Nine holes with a total of 1,502 ft. (457.8 m) were completed in the recent campaign and this release is reporting values from K16-01, K16-03, K16-04, K16-05, K16-06, and K16-08 from which core was assayed at ALS Canada Ltd., at their laboratories in Reno, Nevada, and Vancouver, BC. In the case of K16-08, core sampling and, hence, assaying inadvertently stopped at 173 feet (52.7 m), only 3 feet (0.9 m) past the historical intersection of silver mineralization. Viscount will extend the sampling of this hole when the next phase of work commences.

 

A summary of drill intersections for which assays have been received to date is presented below. The hole collars lie within a northeast trending corridor that is 833 ft. (254m) from K16-05 to K16-03. Holes K16-03 and -04 were drilled at -90° (vertical) and the others toward north at -60° to the horizontal. Although rock units dip or slope at 2° to 5° toward the east-southeast as noted under the heading "Silver Cliff Geology", the present interpretation is that silver-bearing mineralization and silica have replaced portions of a porous limestone reef unit. Such replacement is typically uneven rather than uniformly tabular. Because of this and the early stage of drilling, true widths are not estimated.

Cross Sections

Check Hole K16-1

Check Hole K16-3

Check Hole K16-4

Check Hole K16-5

Check Hole K16-6

Check Hole K16-8

TSXV: VML

More Information

409 - 221 W. Esplanade,

North Vancouver,  BC, V7M 3J3

Phone: 604-960-0535

Email: info@viscountmining.com

 

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