(TSX-V: VML) (OTCQB: VLMGF) (“Viscount” or “the Company”), is pleased to announce it has started a two to four hole (610 metres -1,464 metres) reverse circulation drill program to make an initial test of the Star and Exchequer vein systems. The program will be results driven and will be expanded as needed based on visual inspection of the samples logged on site.
Kaare Foy, Viscount Chairman stated: “In 2012 Snowden completed an NI 43-101 report on Cherry Creek and its geologists, while evaluating the Star mine property identified geological, structural, mineral
and stratigraphical similarities to Newmont’s Long Canyon mine to the north which they purchased for US$2.3 billion in 2011”.
Mark Abrams, Viscount geologist stated: “Assay results received from sampling also demonstrate the poly-metallic character of Cherry Creek’s mineralization. Many of the highest assay values coincide with the known historic mining trends and the structural interpretations across the Cherry Creek property. The distribution of mineralized samples throughout the prospect, and accompanying alteration, suggests good potential for significant metal accumulations.”
Star Mine
The Star vein was the most exploited vein in the Cherry Creek District. In an NI 43 101 completed by Snowden in 2012 they stated that a report was issued by the Nevada State Bureau of Mines in Cooperation with the United States Geological Survey, dated August 1, 1931, as University of Nevada Bulletin No. 14 and entitled “Spruce Mountain District, Elko County and Cherry Creek (Egan Canyon) District, White Pine County”, by F.C. Schrader, Geologist U.S. Geological Survey. On page 35 of this report it is stated that, “…engineers credit the Star mine with a proved reserve of 15,222 tons of ore containing about 30 ounces of silver to the ton and a possible additional reserve equivalent of about 4,000,000 ounces of silver”. The average grade of the ore was reported to be 7.8 grams per tonne (gpt) gold and 22 ounces per tonne silver and lead and zinc about 8 % each (Schrader 1931). The vein is 670 metres long and +250 meters deep based on incomplete production records and data. The best-known ore shoot is 300 metres long. These estimates must be considered as historic and do not meet the National Instrument 43-101 definitions for a resource or reserve as stated in sections 1.2 and 1.3. There has been no opportunity to verify either the grade or size of the reported “ready to mine” reserve, “proved” reserve or “additional reserve equivalent” reserve and therefore the estimates cannot be considered to comply with NI 43-101. Viscount has not completed sufficient work to classify the historical reserve estimate as either a current mineral resource or mineral reserve and Viscount is not treating the historical estimate as a current mineral resource or mineral reserve as defined in NI 43-101. The historical estimates should not be relied upon and therefore have not been used in any form to determine the geology, mineralization or reserve estimation. The Star Mine has never undergone exploration using modern techniques or modern drilling. It is likely there is depth potential similar to what has already been demonstrated by historical mining. There is an additional 370 metres of strike length along the Star vein where exploration drilling may identify additional precious metal resources. Given the potential, the Star Mine warrants a significant exploration drill program to test this potential.
Exchequer Mine, Blue Vein and New Century (Imperial) Mine
Similar to the Star Mine, the Exchequer and New Century (Imperial) mines are historic producers of silver and gold, which have not been adequately evaluated for exploration potential. The Exchequer mine consists of workings on two distinct subparallel veins, emplaced approximately 9 to 18 metres apart along the Exchequer Fault, with disseminated gold and silver in the quartz monzonite wall rocks between the two veins. The southernmost of the two veins is known as the Blue Vein. It is somewhat different than the northern Exchequer Vein in that the metallurgy is less complex and more likely to be amenable to cyanidation.
The Exchequer/Blue Vein/New Century vein structure has the reasonable potential to host an exploration target of silver over 350 metres of strike that includes parts of the Exchequer and New Century mine areas. The original length of the vein in these adjacent historic mines was at least 950 metres long. Surface mapping on other historic mines to the west has followed the vein for 1,200 metres. The additional 600 metres of strike along the Exchequer vein systems represents a substantial gold and silver target with excellent upside.
In a report on from the 2012 NI 43101 on the mineralization that occurs on the subject claims for Goldera Resources Inc., Dr. W.D. Groves, P.Eng. stated on page 3:
“Extensive assaying of ore shoots exposed in workings on Goldera’s three sets of Cherry Creek, Nevada properties has an indicated 47,000 tons of “ready to mine” ore with a weighted average grade of 0.0586
oz. gold/tonne and 24.1 oz. silver/tonne….”
The 47,000 tons are distributed over five locations as follows:
R-1 New Century mine, Upper adit – Blue Vein 10,000 tons
R-2 New Century mine, Shaft and lower levels, 20,000 tons
R-3 Exchequer mine Upper adit – Blue Vein 5,000 tons
R-5 Motherlode mine Open pit 10,000 tons
R-6 Pick & Gad Mine Open Pit 2,000 tons
TOTAL 47,000 tons
This estimate must be considered an historical resource and does not meet the National Instrument 43-101 definitions for a resource or reserve as stated in sections 1.2 and 1.3. There has been no opportunity to verify either the grade or size of the reported “ready to mine” reserve and the therefore the estimate cannot be considered to comply with NI 43-101. Viscount has not completed sufficient work to classify the historical reserve estimate as either a current mineral resource or mineral reserve and Viscount is not treating the historical estimate as a current mineral resource or mineral reserve as defined in NI 43-101. The historical estimate should not be relied upon.
Viscount is currently in the final planning stages for a winter drill program at Silver Cliff to expand the indicated and inferred mineral resource of 12,704,800 ounces of silver announced May 30th of this year. This next phase will continue to confirm the historical data reported by Tenneco in order to expand the current resource and test new targets. Between 1987 and 1990 Tenneco Minerals completed a feasibility study after an intensive drilling campaign and announced plans to construct a $35 million mill at Silver Cliff. (This was the year before the parent company, Tenneco, decided to divest their mineral interests so the decision was reversed in 1991).
Qualified Persons
The scientific and technical information contained in this news release has been reviewed and approved by Dallas W. Davis, P.Eng, FEC, an independent consulting geologist who is a “Qualified Person” as such term is defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
About Viscount Mining (TSX VENTURE: VML) (OTCQB: VLMGF)
Viscount Mining is a project generator and an exploration company with a portfolio of silver and gold properties in the Western United States, including Silver Cliff in Colorado and Cherry Creek in Nevada.
The Silver Cliff property in Colorado lies within the historic Hardscrabble Silver District in the Wet Mountain Valley, Custer County, south-central Colorado. It is located 44 miles WSW of Pueblo, Colorado, and has year-around access by paved road.
The property consists of 2,319.48 acres where high grade silver, gold and base metal production came from numerous mines during the period 1878 to the early 1900’s. The property underwent substantial exploration between 1967 and 1984. The property is interpreted to encompass a portion of a large caldera and highly altered sequence of tertiary rhyolitic flows and fragmental units which offers potential to host deposits with both precious and base metals. This has been demonstrated in t he mineralization historically extracted from the numerous underground and surface mining operations. Drilling in the 1980s by Tenneco resulted in a historical pre-feasibility study on which basis it was planned to bring the property to production. The plan was abandoned following takeover by another company.
The Cherry Creek Property is focused on exploration in the immediate vicinity of an area commonly known as the Cherry Creek Mining District, located approximately 50 miles north of the town of Ely, in White Pine County, Nevada. Cherry Creek consists of over 276 unpatented and 18 patented claims as well as mill rights, and is comprised of more than 6,000 acres. Cherry Creek includes more than 20 past producing mines including Blue Bird, Chance Mine, Filmore, Last Chance, Star, Exchequer/ New Century Mine, Ticup and Motherlode mines.
For additional information regarding the above noted property and other corporate information, please visit the Company’s website at www.viscountmining.com
ON BEHALF OF THE BOARD OF DIRECTORS
“Jim MacKenzie”
President, CEO and Director
For further information, please contact:
Viscount Investor Relations
Phone: 1 844 863 3622
Email: info@viscountmining.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains certain statements that may be deemed “forward-looking” statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Viscount Mining Corp. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Viscount Mining Corp. management on the date the statements are made. Except as required by law, Viscount Mining Corp. undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
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