PRESS RELEASE January 19, 2017
Drill Hole K16-01 assayed 1,778.5 g/t (57.2 oz/t) silver over a 20-ft. (6.1m) interval within a 50 ft. (15.2m) mineralized intersection averaging 837.4 g/t (26.9 oz/t)
VANCOUVER, Canada –- Viscount Mining Corp. (TSX-V: VML) (OTCQB: VLMGF) (“Viscount” or “the Company”), is pleased to announce further drill results from the Silver Cliff property in the Hardscrabble Silver District of Custer County, Colorado (the “Property”). The 2016 drill program commenced in mid-November had as its primary objective the confirmation of information in reports on historical drilling on one of the Silver Cliff deposits known as the Kate Silver Resource (the “KSR”) by twinning historic holes.
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.
|Viscount Hole #||Twinned Hole #||From (m)||From (ft.)||To
|Length (m)||Length (ft.)||Ag
Kaare Foy, Viscount Chairman stated: “We are very pleased with the drill program conducted in 2016 as it has demonstrated that there is significant silver mineralization that occurs at a shallow depth between 50 ft. (15.2m) to about 175 ft. (53.3m) that may be amenable to open pit mining. More drilling and a prefeasibility report will need to be done before an economic evaluation can be made. These results have prompted the Company to consider doing additional mapping, possible geophysical surveys and more strategically placed drill holes to outline the shape, dimensions, and potential grade. Once this is completed and if warranted by the results, a prefeasibility study will be considered that will include extensive metallurgical studies, mining methods, and costs.”
Silver Cliff Geology
The following information has been obtained from historical reports that describe the Kate silver prospect.
Structure in the area appears quite simple. Dips are to the east-southeast at 2o to 5o. Faulting is not obvious on the surface and a contour map of the surface of the lower obsidian suggest that no faults with more than 50 feet of displacement occur within the area of the Kate mineralization. Examination of PQ wireline core drilled in 1989 for a metallurgical sample, indicate; however, that faults with minor displacement are numerous.
Jim Ebisch reiterated what he stated in the December 21st news release, namely that “The 2016 drilling 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 (the “KSR”) 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 KSR may eventually lie in undiscovered stacked horizons, in combination with high-grade epithermal veins that may underlie the KSR.”
About Silver Cliff Property
The Silver Cliff property lies within the historic Hardscrabble Silver District in Colorado. The Property 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. The major explorers were Freeport, Hecla, Homestake, Moly Corp, Coca Mines and Tenneco Minerals.
The Silver Cliff Property is interpreted to encompass a large caldera and porphyry system which offers 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.
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. Reported historical silver grades range from below detection to a high of 2,125 g/t (68 o/t) Ag over 13.4 metres. Reported 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.
Quality Assurance/Quality Control (“QA/QC”) Measures, Chain of Custody
The Company has implemented a QA/QC program using best industry practices at the Silver Cliff Property. Drill core samples are sawn in half lengthwise and one half transported in securely-sealed bags to the ALS laboratory in Reno, Nevada, for analysis. Prior to transport, individual samples are labeled, placed in plastic sample bags and sealed. Groups of samples are then placed into durable rice bags that are then shipped. The sample pulps and rejects will be retrieved from ALS. All samples were analyzed for Ag and 50 other elements by ALS method “Ultra Trace Aqua Regia ICP-MS” with code ME-MS41. In the case of Ag determined by this method to be in excess of 100 ppm, a further analysis for Ag was done utilizing method “Ore Grade Aqua Regia ICP-AES” with ALS code Ag-OG46. For the three 5-ft interval samples from K16-01 containing more than 1,500 ppm Ag, the ALS method “Ag 30g FA – GRAV finish WST-SIM” with code Ag- GRA21 was utilized.
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 an exploration company with a portfolio of gold and silver properties in the Western United States, including Cherry Creek in Nevada and Silver Cliff in Colorado. Cherry Creek is comprised of more than 9,000 acres, all 100% owned, and includes more than 20 past producing mines. Viscount has entered into an exploration earn-in agreement with Sumitomo Corporation covering the Cherry Creek property. Sumitomo can earn in up to a 75% interest in the property by producing a feasibility study and by spending in addition a minimum of US$10,000,000 in exploration and development expenses by the eighth anniversary of the earn-in agreement. Silver Cliff in Colorado is comprised of 96 lode claims, covering much of the historical past-producing mineral districts of Silver Cliff and Rosita Hills.
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
President, CEO and Director
For further information, please contact:
Viscount Investor Relations
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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.