By Thom Calandra
Cherry Creek has silver, we knew that based on 80-year-old workings, crude miners’ cabins and 21 roughly hewn mine entrances at the northeastern Nevada site.
The first 12 exploration holes yielded low-grade but seemingly continuous silver, with small patches of gold, fresh data reveal.
A few weeks ago, that site and claims at a sister canyon next door raised eyebrows as geologists gathered at the yearly Round-Up of miners and prospectors in British Columbia.
The Viscount Mining (TSXV: VML) assays just published look enough to keep the shares worth about $17 million to $20 million CAD. At present, VML shares in Canada and in USA are rising.
Holders of VML shares are looking to see drilling at an adjacent target called Flint Canyon. That collection of lode claims, coupled with a rising gold market, are boosting Viscount shares this week.
Flint Canyon is in the same region as Pilot Gold’s Kinsley Mountain and other prospective gold deposits that go by the moniker Carlin Trend sediment-hosted tracts of low-grade gold.
“I think most people are now in this story for Flint Canyon, with very low expectations elsewhere at Cherry Creek or at (Colorado property) Silver Cliff,” says Matt Geiger of a small hedge fund in San Francisco, MJG Capital.
Jim Mackenzie during Cherry Creek tour in autumn 2015
At Flint Canyon, jasperoid outcroppings of rocks are in mineral-hosting sediments similar to those at other nearby gold deposits (Newmont Mining at Long Canyon and Barrick Gold at Bald Mountain deposits).
Regarding Cherry Creek, I told CEO Jim Mackenzie I would have liked to see more evidence of other minerals: zinc, gold of course (there was some of that), and other trace elements. See assays.
David Tretbar of Summit Mining International calls the exploration shots for Summit. He is the lead geologist there. He says, “I just hired a computer geologist – resource modeler who will take over the project database from consultants and re-digitiize all field maps into ArcGIS as well as load the entire project into Vulcan modeling program.”
Viscount is a fraction the market value of project developer Gold Standard Ventures in Elko, Nevada. The same $17 million market worth vs. a handful of other wanna-be miners and prospectors in the Silver State of Nevada. I think Flint Canyon will be in the geology and investment headlines this year. Here is a reprint of my TCR visit to Cherry Creek in September 2015.
I hold my Viscount Mining shares (also VLMGF in USA). Mr. Mackenzie, from British Columbia, says the company’s partnership with Sumitomo’s Summit Mining unit in Denver gives it a hand-up in the technical department of finding deposits. The former banker says Viscount is getting queries about its Colorado property from possible exploration partners.
If Viscount continues to notch development partnerships and avoid stock dilution via equity financings, it will manage to become a viable generator, or spawner, of mineral projects.
Sumitomo’s Summit unit is known to be a pathway to other connections — in New York City and in Japan. Matt Geiger, the money manager, says he is focusing on such generators because — after almost five years of falling prices for commodities and commodity explorers — such companies are cheap. And sometimes, actionable: “they tend to have lots of claims and good working capital.”
Mr. Geiger’s treatise on project, or prospect, generators, lists several dozen publicly traded ones in North America. Those in common with TCR and TCR coverage include Viscount Mining, Golden Valley Mines, Eurasian Minerals, Midland Exploration (this one from Quebec I recently purchased) and Riverside Resources. His own list of ownership for his MJG Capital includes Viscount, Solitario Exploration and Almadex Minerals. He is looking at several additions to his MJG portfolio from Denver and from Quebec. What Is A Prospect Generator?
Thom Calandra & TCR are researchers and investors. They are not registered investment advisers. The research and material they offer to subscribers are meant as editorial opinion.
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