11
THE KONLIN LETTER
5 Water Rd., Rocky Point, NY 11778.
1 year, 12 issues, $95. www.konlin.com.
Viscount Mining: Portfolio of silver
and gold properties in the U.S.
With rising interest rates, inflation creeping back
into the world economies, trade wars rumblings,
investor uncertainty increasing has silver and gold
poised for huge gains for precious metals investors,
says editor Konrad Kuhn. His recent Stock of the
Month is Viscount Mining Corp. Here are Kuhn’s
comments:
“Viscount Mining Corp. (VLMGF),(website:
www.viscountmining.com), which I am a shareholder
of and technical market consultant to, is a project
generator and an exploration company, with a portfo-
lio of silver and gold properties in the Western U.S.,
including Silver Cliff in Colorado and Cherry Creek in
Nevada, The Silver Cliff property (year-round paved
access) lies within the historic Hardscrabble Silver
District in which historical assays (not NI 43-101) in-
dicated there could be more than 40-50 mil. ounces of
silver. It also consists of 96 lode claims on approx. 2,297
acres where high grade silver, gold and base metal
production came from numerous mines from 1878
to early 1900s. The property underwent substantial
exploration between 1967-1984 for defining mineral in-
ventories by major companies such as Freeport, Hecla,
Homestake, Moly Corp., CoCa Mines and Tenneco
Minerals. Drilling by Tenneco resulted in a historical
prefeasibility study on which it was planned to bring
the property to production. The plan was halted when
Tenneco was bought out by a huge Belgium conglomer-
ate not interested in mine development.
The property lay dormant until Pres./CEO
Jim MacKenzie led an astute mining team in the
acquisition of projects, maps and data to conduct a
new round of test drillings at Silver Cliff. In mid.-
Nov.’16, VLMGF commenced test drillings with
the primary objective to confirm information in
reports on historical drilling on one of the Silver
Cliff deposits – the Kate Silver Resource (KSR), by
twinning historical holes. The results confirmed
the property had some of the highest grades of
silver ever measured in North America. In fact, the
mineralization at KSR is generally a flat lying bed
and one hole property assayed 57.2 oz/t silver over
a 20-ft interval with a 50-ft mineralized intersection
averaging 25.9 oz/t silver and was the basis for the
Phase 2 drill program using a state-of-the-art coring
drill rig. Most exciting, results show additional
significant rich silver blue gray mineralization,
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formed during a volcanic hiatus with deep seeded
epithermal veins, may lie in an abundance of rich
undiscovered silver stacked in layers in combination
with high grade epithermal veins.
Furthermore, the nearby Passiflora deposit has
resources estimated by CoCa Mines of 37.8 mil.
ounces of silver in the ground. VLMGF controls
approx. 40% of the Passiflora deposit and is in
negotiations for the remaining portion. VLMGF’s
Cherry Creek, a valuable mining property consisting
of over 400 unpatented and patented claims as well as
mill rights, is composed of more than 8,000 acres. For
the first time, most of Cherry Creek’s past producing
mires are assembled under one ownership group,
which includes more than 20 past producing silver/
gold mines all on patented property. The Phase 2 High
Quality (HQ) drilling program has ended, totaling 20
holes during the past drill campaigns showing 83%-
100% true thickness. Silver Cliff core drilling samples
are more accurate hole-for-hole than Tenneco’s abhor
drilling of holes, with many showing 2-3 times higher
grade and longer length. The strategic two drill
programs demonstrated a significant rich silver
mineralization occurred at shallow depth and that
high grade silver deposits existed from surface to
about 175 ft. It also indicates the potential for open-
pit mining with low extraction costs.
Meanwhile, in the midst of an ongoing active
drilling/exploration program, the stock has been
making higher lows, confirming its July’17 bottom,
surging 89% into a bullish Flag Pattern. With the
highest silver grade results in the U.S. ever seen, the
stock should have no problem reclaiming its 50-Day
SMA (0.26) and close above 0.31, with momentum
increasing, causing a break above 0.32 before rising
into a moderate zone of overhead resistance at 0.36-
0.40. VLMGF has no debt, and of the 50,513,000
shares outstanding, insiders own 60%. Management
is establishing proof of concept, updating the
historical mineral resource defined by Tenneco in
the ‘80s, to acquire a NI 43-101 mineral resource [Ed
Note: Posted to the company’s website, May 30, 2018.]
We would continue to Add/Buy for a first target of
1.50-1.75 as VLMGF reported additional significant
high-grade silver intersections (cross-cutting to
determine width of deposit). The HG core drilling at
the historic KSR deposit drilled into what seems to be
significant veins or zones based on the 20 drilled holes,
and appear to be more than the Tenneco find. Expanding
the resource potential by much greater value and
beginning h the reclassifying of the historical Tenneco
resource to a current NI 43-101 mineral resource will be
the catalyst propelling the stock, squeezing the shorts.
Management is reviewing the data to further expand
HG core drill programs. At the rate they are going,
VLMGF could have the largest silver resource in the
U.S. by year-end, significantly increasing shareholder
value. Ultimate target 2.50-3.00.”
Source: The KonLin Letter specializes in low price stocks under
$10, with emphasis on emerging growth and special situations
poised for explosive price appreciation. Each issue features 5
low-priced stock selections and a review of 30-35 different small
caps while monitoring a broad range of technical indicators for
the best possible Market Timing Advice. For more information
visit www.konlin.com.