Viscount Mining Update: Reports Additional Sections of Multi-Ounce Silver Over Wide Intervals at Silver Cliff

14th February 2018

Viscount Mining Corp announced the assay results from two more holes today from its now completed Phase 2 drill program at the Company's wholly owned Silver Cliff project area in the Hardscrabble mining district of central Colorado.  

Today's results included assays for drill hole number P17001 which came in at 3.65 oz/t over 9 meters (from 24 meters to 33 meters) including 7.64 oz/t over 3 meters (from 25.5 meters to 28.5 meters). This hole is notable in that it assessed the less tested northern portion of the Kate deposit. The true thickness of the reported intersection of this hole is estimated at 100%. 

Today's results also included assays for drill hole number P17003 which came in at 1.88 oz/t silver over 6 meters (from 15 meters to 21 meters) including 4.92 oz/t silver over 1.5 meters (from 16.5 meters to 18 meters). The true thickness of the reported intersection of this hole is estimated at 100%.

These two holes add to the already reported 5 holes reported by Viscount over the past couple of months (full table below) and show a continuing trend of thick, shallow and horizontally configured tablet shaped beds of multi-ounce silver mineralization - and more importantly this first round of drilling has demonstrated that so far, the current drilling is mirroring the assay levels and widths - and in some cases has come in at higher silver content levels - than what was completed in the mid 80's and reported by Tenneco and Hecla. 

These results further lead us to the belief that at some point the market is going to come to the realization that the historical resource estimate of 50 million ounces could possibly be not only a reliable number of ounces, but given the fact that this deposit could run both deeper and laterally outside the original resource estimate envelope - that the initial number could possibly even be improved on and come in at higher than the originally reported 50 million ounces.  We also see the fact that this deposit looks to be configured as horizontally shaped tablets could make this project a lower cost, bulk mining operation vs mining steeply tilted narrow vein configuration mineralization - which can be both more difficult and expensive to mine.  Both of these potential outcomes could add materially to the value of Silver Cliff as well as to the value of Viscount shares in the event the market re-rates the potential of this project area. 

We expect to see additional drilling results for this first phase of drilling soon and will report that information once it's made available. 

Mark Abrams, Viscount Director and geologist stated in today's release: 

"The drill program from 2016 and 2017 is showing very positive results that have lead us to believe we are getting to a point in our understanding where we can start to target potential higher grade feeder zones some of which appear to have been the focus of historic mining."

We have included a chart below which denotes assay values and interval data for all 7 holes reported to date:

As Viscount continues to move the ball forward at their Silver Cliff property to re-classify the historical resource estimate of silver mineralization of 50 million ounces of silver generated in the mid 80's to meet the full guidelines of National Instrument NI 43-101 we see a very good opportunity for patient investors to build positions in the Company at this level and hold them over the next few quarters as Viscount completes the next round or 2 of drilling. Our reasoning for this is based primarily on the fact that drilling to date has tracked very well with past drilling assay results - and in a number of cases has been materially higher with respect to silver mineralization level - and therefore believe it's really more a matter of when, not if - the market comes to the realization that Viscount is likely going to be successful in documenting a large, near surface 50 million ounce silver deposit in terms of NI 43-101.   

In addition, the fact that this deposit looks to exhibit widely disseminated mineralization in a large open pit minable envelope makes this project very well suited to above surface, bulk mining methods, (in contrast to more expensive underground vein mining techniques) and that should make this a lower cost mining project in contrast to silver projects that require underground mining. 

For these reasons we believe that once Viscount is successful in re-classifying this deposit, (or even gets enough drilling completed to the point where one or more mining analysts has confidence that the historical work was done competently, and that a contemporary NI 43-101 resource calculation will at least mirror the prior results or could in fact be even greater in mineral content), we would expect to see this company's market value and share price get re-rated to a market cap/price level that would more accurately define a Company that counts as one of it's primary assets a bona fide 50 million silver ounce resource with the potential for low cost production metrics in a safe, geopolitically sound location such as south central Colorado. 

This thesis doesn't even take into account the value creation potential of expanding the Silver Cliff resource outside the historical envelope of the prior resource calculation both laterally and to depth, which we expect is quite possible based on geologic desriptions of the surrounding acreage at Silver Cliff noted in recent press release information. In addition, this doesn't include any value potential from the Company's Cherry Creek project  (Nevada) - which we also see strong upside potential in based on the prior work done at the project area (which supported up to 20 high-grade historical mining operations in the past). 


What does a 50 million ounce silver resource (or possibly 50M+) in a safe, reliable, historically mining friendly jurisdiction with excellent infrastructure in place look like? That's a bit hard to say but we are confident that if Viscount is successful in putting this resource on a solid NI 43-101 foundation, it will look a lot bigger than the current enterprise value of Viscount and attract a number of suitors interested in moving the project to full feasibility level and eventual production.  Another aspect of Silver Cliff that we really see as an attractive feature are the thickness of the mineralized zones combined with the extremely high grades (for widely disseminated mineralization). In silver you generally get to choose 2 of the following three metrics - (shallow) depth, (wide) interval thickness and (multi-ounce silver) grade - it's very rare that you get to choose all 3 and that's exactly what we could be looking at here in Viscount's Silver Cliff project. 


If and when the silver price moves, Companies with solid silver assets either in or near production should do extremely well - and we believe the Silver Cliff deposit is squarely in that camp and should get some serious market recognition when they are able to publish a NI 43-101 silver resource report on that project area.   


Viscounts Phase 2 drilling program consisted of 10 holes, of which only seven holes have been reported thus far. With the additional 3 holes now completed we are confident that assay results for these remaining holes will be reported in the near future.   


Here is a link to the full press release:


Additional information is available at:​ 


We will continue to keep you up to speed on the developments and milestone accomplishments at Viscount Mining Corp.
Clay Chase
SD Torrey Hills Capital
858 456-7300

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