Resource World Magazine

46 www.resourceworld.com a u g u s t / s e p t e m b e r 2 0 1 6 Viscount Mining – Sumitomo cleared for Nevada drilling program by Ellsworth Dickson Viscount Mining Corp. [VML-TSXV; VLMGF-OTCQB] has received approval at Flint Canyon for new drill hole pad locations, sumps, and road construction under a Notice of Intent submit- ted to the Nevada Bureau of Land Management (BLM) earlier this spring. Flint Canyon is part of the 100%-owned Cherry Creek gold/silver project in White Pine County, Nevada. Sumitomo Corp.'s US subsidiary, Colorado-based Summit Mining Exploration Inc., can earn a 75% interest in the 9,000- acre Cherry Creek property by producing a feasibility study and in addition by spending a minimum of US $10,000,000 on explo- ration and development by the eighth anniversary of the earn-in agreement. The Cherry Creek property hosted more than 20 past- producing mines. With this approval Viscount will have a 7,046-foot new road and go ahead with Phase I of the 2016 reverse circulation drilling program scheduled for early August. The program will consist of approximately 18 holes for 4,380 metres (14,366 feet) starting at Flint Canyon. The 2015 mapping at Flint Canyon found the area to be much more complexly faulted than previously indicated on the Adair 1961 geologic base map. Summit's mapping program discovered that east-west orientated faults and fractures, which are impor- tant ore controlling structures at Cherry Creek's Ticup and Star Mines, also occur in the area. The Flint Canyon area features alteration and mineralization characteristic of the important Carlin-type gold deposits in east-central Nevada with one sample grading 3.83 g/t gold. Jasperoid occurrences in Nevada are significant with regards to Carlin-type gold deposits and mineralized jasperoid outcrops are common throughout the Flint Canyon area. Many major gold discoveries have been made based on the presence of outcrop- ping, weakly mineralized jasperoid hosted in and along bedding contacts of carbonate rocks. At Flint Canyon, jasperoid is found in the same carbonate rocks that are prolific host rocks at nearby large gold deposits such as Newmont Mining-Long Canyon. Jim MacKenzie, Viscount President and CEO, stated, "We are very excited that Phase I of this year's drill program is starting at the Flint Canyon area which exhibits alteration and mineraliza- tion characteristic of Carlin-type gold deposits." In an interview with Kaare Foy, Chairman of Viscount Mining, I noted that it was unusual that a major would offer to prepare a feasibility study and spend US $10 million on such an early stage property which prompted the question: Does this demonstrate the prospectivity of the project? "Yes, we believe so. There are 22 past-producing mines on the Cherry Creek property which we assembled, acquired and placed into Viscount Mining. This is the first time all of the ground is owned by one company." Foy added, "When Sumitomo realized the property was under one banner they wanted to become involved. They contracted to spend between US $35-40 million on the bankable feasibil- ity study plus US $10 million on exploration to earn the 75% interest." Foy explained that after Sumitomo earns its interest, Viscount does not want to continue as a minority shareholder but would like to sell the property – not the company – to Sumitomo, as pro- vided in the earn-in agreement. "Since we are a project generator, we would like to advance our other properties and eventually sell them too," he said. Viscount Mining also has a 100% interest in the Silver Cliff property 44 miles west-southwest of Pueblo, Colorado comprised of 96 lode claims covering much of the historical past-producing mineral districts of Silver Cliff and Rosita Hills. High-grade silver, gold and base metal production came from numerous mines from 1878 to 1894. 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 oz/ton) silver over 13.4 metres. Known historical gold grades range from below detec- tion to a high of 9.06 g/t (0.29 oz/ton) gold over 1.2 metres. Plans were halted due to the restructuring of Tenneco after it was sold. Foy said that funds have been raised to drill the Silver Cliff property to bring it up to NI 43-101 standards. "We have a good idea of where to drill based on previous exploration results. Drilling is scheduled for August." n Drilling operations at the Cherry Creek gold/silver project in White pine County, Nevada. photo courtesy Viscount mining Corp. miNiNg

• Cover