{"id":110685,"date":"2017-08-10T10:45:21","date_gmt":"2017-08-10T14:45:21","guid":{"rendered":"http:\/\/countingpips.com\/?p=110685"},"modified":"2017-08-10T10:45:21","modified_gmt":"2017-08-10T14:45:21","slug":"chairman-interview-viscount-mining-kaare-foy","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/08\/chairman-interview-viscount-mining-kaare-foy\/","title":{"rendered":"Chairman Interview: Viscount Mining Kaare Foy"},"content":{"rendered":"
August 10, 2017<\/div>
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By<\/strong>\u00a0Peter Epstein, CFA, MBA \u00a0\u00a0epstein.peter4@gmail.com<\/a>\u00a0\u00a0\u00a0http:\/\/EpsteinResearch.com<\/a><\/b><\/p>\n

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Viscount Mining<\/strong>\u00a0<\/span>(<\/span>TSX-V:\u00a0VML<\/strong>) \/ (OTCQB:\u00a0VLMGF<\/strong>)\u00a0is a project generator with 2 silver (\u201cAg\u201c) \/ gold (\u201cAu\u201c) properties in the Western U.S.,\u00a0Silver Cliff\u00a0and\u00a0Cherry Creek.\u00a0\u00a0Silver Cliff in south-central Colorado consists of 2,029 acres that were host to high-grade silver, gold & base metal production from 1878 to the early 1900\u2019s.\u00a0 A Pre-Feasibility Study (\u201cPFS\u201c) was completed in the 1980s, but that report is\u00a0not NI 43-101 compliant<\/em>.\u00a0 The PFS contained very-high grade assays including an interval of\u00a068 troy oz.\/ton Ag (2,125 grams\/tonne)\u00a0over 44 ft. (13.4 m).\u00a0 Late last year, management twinned several of the holes from the 1980\u2019s and was quite pleased with the results. \u00a0{See table of twinned holes below<\/em>}<\/p>\n

The Cherry Creek property in northeastern Nevada consists of over 400 un-patented and patented claims as well as mill rights.\u00a0 There was a robust 2-year exploration program (at no cost to Viscount)<\/em>\u00a0in 2015-16 by a former earn-in party that yielded detailed and positive results that the Company plans to follow up on this year.\u00a0 Interested parties are looking at Silver Cliff and Cherry Creek.\u00a0 A farm-out agreement on one or both properties could be a 2017 event and would represent important investment catalysts.\u00a0 A Phase 2 drilling program at Silver Cliff is expected to start in September\/October.<\/p>\n

Looking more closely at Viscount, I discovered that there are in fact a number of near-term catalysts, so I reached out to Viscount\u2019s\u00a0Chairman Kaare Foy\u00a0to learn more.\u00a0 The following interview was conducted from August 3-8 by phone and email.<\/p>\n

Kaare, can you give readers a brief overview of your background?<\/h3>\n

Yes, of course. \u00a0l was born in New South Wales, Australia, earned a Bachelor of Economics Degree from Monash University and received a Green Beret with the Australian Commando Regiment.\u00a0 I\u00a0worked in the construction materials industry in Melbourne, Switzerland & Saudi Arabia before emigrating to Canada in 1995.\u00a0 I was appointed Hon. Consul of Montenegro to British Columbia in 2010 and awarded the Queen Elizabeth II Diamond Jubilee Medal in 2012.\u00a0 Since 2008 I\u2019ve been a Director of\u00a0Golden Prospect Metals Ltd. of the UK.<\/p>\n

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I have\u00a0more than\u00a035\u00a0years\u2019 experience in senior management and Board roles for both public & private companies in Australia, Canada and the UK.\u00a0 Most pertinent to your readers might be my 18 years\u00a0at\u00a0Great Panther Silver (NYSE: GPL) \/ (TSX-V: GPR), a producer operating the Guanajuato Mine Complex, which includes the\u00a0San Ignacio and Topia Mines, both in Mexico.<\/p>\n

I became\u00a0a\u00a0Director in 1994 and\u00a0Executive Chairman in 2003, the position I held until I retired in 2012.\u00a0 I led the company from\u00a0a one-person\u00a0start-up to a successful mid-tier producer.\u00a0\u00a0In the\u00a0year before my\u00a0retirement, Great Panther\u2019s\u00a0share price reached US$5, and its\u00a0market cap US$600\u00a0million.<\/u><\/u><\/p>

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CEO\u00a0and\u00a0Founder Jim MacKenzie\u00a0convinced me to come out of retirement in July 2013 to become Chairman of Viscount.\u00a0 I was particularly impressed with his forthrightness and his vision for the Company \u2013 one of generating multiple projects, having mid-tiers and Majors earn-in and subsequently acquire the properties, and distributing (via special dividend<\/em>) the resultant sale proceeds to shareholders.<\/p>\n

Please tell us about the people on Viscount Mining\u2019s team.<\/h3>\n

First off there\u2019s Jim our CEO, a Director & Founder of Viscount in 2010.\u00a0 He brought me in, but more importantly he brought in the\u00a0Cherry Creek<\/a>\u00a0and\u00a0Silver Cliff\u00a0<\/a>projects and assembled our\u00a0excellent\u00a0team.\u00a0 Jim\u2019s a skilled deal maker and negotiator of joint ventures, land acquisitions & exploration agreements.\u00a0 He has demonstrated strong results through strategic planning, high quality acquisitions & partnerships. \u00a0<\/u><\/u><\/p>\n

Dr. James Robinson\u00a0B.S., M.S., [Ph.D] joined our Technical Board\u00a0in April<\/a>.\u00a0 He has deep knowledge of Nevada, structural geology, precious-metals deposit models & exploration techniques.\u00a0 Jamie was a senior consulting geologist to the former earn-in party involved in all aspects of their 2-years of exploration of Cherry Creek.\u00a0 His experience is proving especially valuable as he accompanies interested parties on site visits.\u00a0<\/u><\/u><\/p>\n

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Dr. Gilles Arseneau\u00a0has been retained to complete a NI\u00a043-101 Technical Report on our Silver Cliff project.\u00a0\u00a0Dr. Arseneau has more than 25 years\u2019 experience and holds a Ph.D Geology, from the\u00a0Colorado School of Mines. \u00a0<\/u><\/u><\/p>\n

Mark Abrams\u00a0B.Sc., M.Sc. is a Director & senior Technical Advisor.\u00a0 He has more than 30 years\u2019 of domestic & international mineral exploration experience.\u00a0 Most recently he was responsible for exploration & acquisitions in the U.S. for\u00a0Golden Predator Corp., Prior, he worked for 12 years for\u00a0Agnico-Eagle (USA), where he led his exploration team to a gold discovery in northeastern Nevada.\u00a0<\/u><\/u><\/p>\n

Dr. Howard Reino Lahti, B.Sc., M.Sc., Ph.D. \u00a0is our VP of Exploration.\u00a0 He has 45 years\u2019 of mineral exploration experience.\u00a0 Dr. Lahti has managed mineral exploration projects in Canada, Thailand, Brazil, Peru, Chile, Panama, the Artic & Ecuador, and has prepared several NI 43-101 technical reports.<\/p>\n

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Mr. Dallas Davis\u00a0MA, P.Eng., FEC\u00a0brings over 40 years\u2019 expertise to the table as a geologist & consultant to the mining industry, during which time, he has participated in several notable discoveries.\u00a0 He\u2019s been designated a \u201cQualified Person,\u201d (\u201cQP\u201c) under NI 43-101 Standards. \u00a0{See\u00a0full bios<\/a>\u00a0here<\/em>}<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Can you describe Viscount Mining\u2019s Cherry Creek property?<\/h3>\n

Our 100% owned\u00a0Cherry Creek\u00a0property is ~30 miles north of the town of Ely in northeastern Nevada.\u00a0 The district produced mainly high-grade silver,\u00a0and\u00a0some gold, from the mid-1800\u2019s to 1920.\u00a0 We have 2,600 acres of patented and 7,200 acres un-patented claims,\u00a0a\u00a0property that\u2019s host to\u00a0more than\u00a020 past-producing mines.\u00a0 Since 2011, we\u2019ve painstakingly consolidated nearly 10,000 acres, plus mill rights, for the first time, all\u00a0under one roof.\u00a0<\/u><\/u><\/p>\n

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Last\u00a0December\u00a0a former earn-in party completed a 2nd year of comprehensive geologic mapping, surveying soil & rock-chip sampling, including 2 full RC drilling programs.\u00a0 They spent several million US dollars\u00a0completing\u00a0extensive\u00a0exploration that required a lot of time & coordination.\u00a0 All that data has been logged and integrated with a significant amount of historical information, allowing us to identify several really exciting areas.<\/p>\n

How much exploration was done at Cherry Creek in 2015-16 and what do you expect to accomplish this year?<\/h3>\n

A great deal of valuable work was completed (at no cost to us<\/em>) in 2015-16 including; geologic maps, multi-element analyses of surface samples and drill cuttings, lithologic logs from drill holes, digital maps & databases, subsurface interpretations & comprehensive summary reports.\u00a0 As I said, several million (US dollars) was invested over that 2-year period.\u00a0 That\u2019s a significant work commitment on a single project controlled by a company our size.\u00a0 If not for the earn-in party, we would probably have spent that and issued tens of millions of shares to fund the exploration.\u00a0 Instead, we were able to meaningfully advance Cherry Creek and maintain a tight capital structure.\u00a0 Today we have just 41 M shares outstanding and zero debt.\u00a0<\/u><\/u><\/p>\n

In May we announced some very promising gold & silver exploration target areas.\u00a0 We found key\u00a0characteristics similar to sediment-hosted gold mines in eastern Nevada like\u00a0Newmont\u2019s\u00a0Long Canyon<\/em>\u00a0and projects\u00a0similar to\u00a0Liberty Gold\u2019s\u00a0Kinsley Mountain<\/em>.<\/p>\n

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Please describe the Silver Cliff project.<\/h3>\n

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The Silver Cliff property is a very high-grade silver deposit in Colorado.\u00a0\u00a0It consists of 96 claims on 2,029 acres that were host to high-grade silver, gold & base metal production from numerous mines in the late 1800s.\u00a0 The property underwent substantial exploration in the 1960\u2019s 70\u2019s & 80\u2019s by companies including\u00a0Freeport, Hecla, Homestake\u00a0&\u00a0Tenneco Minerals. \u00a0<\/u><\/u><\/p>\n<\/div>\n

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We think Silver Cliff might overlie a large caldera & porphyry system.\u00a0 We have an \u2018exploration target\u2019 of 40 to 50 M ounces of silver. \u00a0NOTE: {the<\/i>\u00a0quantity is conceptual in nature\u00a0<\/em>as\u00a0<\/em>there has been insufficient exploration to date to define a mineral resource<\/em>}.\u00a0 The genesis of the target is drilling in the 1980s by Tenneco that resulted in a (historical) Pre-Feasibility Study (\u201cPFS\u201c) with reported silver grades as high as\u00a02,125 g\/t silver (68 oz.\/t)\u00a0over 44 ft. (13.4 m).<\/p>\n<\/div>\n

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What are the plans for Silver Cliff this year?<\/h3>\n<\/div>\n<\/div>\n
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We\u2019re not relying on the conclusions of the\u00a0non<\/em>\u2013<\/em>NI 43-101 compliantPFS<\/em>.\u00a0 Instead, we did a Phase I\u00a0drill program late last year that consisted of 10 holes (~610 m \/ 2,000 ft.), twinning holes found in the PFS.\u00a0 The objective of the program, and a phase II drill program coming this Fall, is to prove out a NI 43-101 maiden mineral resource estimate.\u00a0 We are quite happy with the results of the twinned holes.\u00a0 One of the best results, the assay for confirmation\u00a0hole K16-01, contained an interval of\u00a01,778 g\/t silver\u00a0(equal to about\u00a057 oz.\/t<\/em>), over 20 ft. (6.1 m).<\/p>\n

What are the key corporate catalysts over the next 6 months?\u00a0 Why should readers consider buying shares of Viscount Mining?<\/h3>\n

There are many reasons to buy our stock!\u00a0 In terms of near-term catalysts we have multiple interested parties looking at both Cherry Creek and Silver Cliff.\u00a0 News of an agreement with a strategic funding partner on at least one, possibly\u00a0both projects is likely\u00a0within 6 months<\/span><\/span>.\u00a0 Subject to lining up partners and funding, we should have initial results from\u00a0the\u00a0drill program and a NI 43-101 Technical Report by\u00a0Dr. Arseneau on Silver Cliff.\u00a0 After that Technical Report, we should be able to deliver a maiden mineral resource estimate.\u00a0 And finally,\u00a0within 6 months<\/span><\/span>, we should be well on our way to completing a PEA on Silver Cliff.<\/p>\n

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Readers should consider buying our shares ahead of these and other important milestones.\u00a0 We think our shares offer an attractive investment opportunity for the following reasons:<\/p>\n

+\u00a0Valuation \u2013 market cap is just\u00a0C$11 M \/ US$ 8.5 M\u00a0for 2 potential blockbuster assets<\/p>\n

+\u00a0Multiple parties, incl. mid-tier & Majors, actively looking at partnering on Cherry Creek & Silver Cliff<\/p>\n

+\u00a0Maiden resource estimate in 4th qtr. or early 2018 [conceptual target of 40 \u2013 50 M ounces of Silver<\/em>]<\/p>\n

+\u00a0Shallow, very high-grade Ag deposit at Silver Cliff, potentially amenable to open pit mining<\/p>\n

+\u00a0Long-term, explicit strategy to pay\u00a0success-based special dividends to shareholders upon closing of portfolio asset sales<\/p>\n

+\u00a0Strong management, Board & technical team, especially for a company our size<\/p>\n

+\u00a0Near-term catalysts to attract attention to the\u00a0Viscount Mining (TSX-V: VML) \/ (OTCQB: VLMGF)\u00a0story<\/p>\n

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Kaare, thanks so much for your time and thoughtful answers to my questions.\u00a0 I look forward to seeing news from your company in coming weeks and months.<\/h3>\n<\/div>\n

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Disclosures<\/u>: The content of this interview is for information only. Readers fully understand and agree that\u00a0nothing\u00a0contained herein,\u00a0written\u00a0by Peter Epstein of\u00a0Epstein Research<\/a>\u00a0<\/em>[ER],\u00a0<\/em>(together,\u00a0<\/em>[ER])\u00a0about\u00a0<\/em>Viscount Mining,\u00a0<\/em>including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing\u00a0contained herein is a recommendation\u00a0or solicitation to buy or sell any security.\u00a0<\/em>[ER]\u00a0is not\u00a0responsible under any circumstances for investment actions taken by the reader.\u00a0<\/em>[ER]\u00a0has never been, and is not currently, a registered or licensed financial advisor or broker\/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not\u00a0perform market making activities.\u00a0<\/em>[ER]\u00a0is not\u00a0directly\u00a0employed by any company, group, organization, party or person.\u00a0The shares of\u00a0<\/em>Viscount Mining\u00a0are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks\u00a0can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.<\/em><\/p>\n

At the time this interview was posted, Peter Epstein owned shares in\u00a0<\/em>Viscount Mining\u00a0<\/em>and the Company was an advertiser on\u00a0<\/em>[ER].<\/em>Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he\u2019s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful.\u00a0<\/em>[ER]\u00a0is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content.\u00a0<\/em>[ER]\u00a0is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic.\u00a0<\/em>[ER]\u00a0is not an expert in any company, industry sector or investment topic.\u00a0<\/em><\/p>\n<\/div>\n

 <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

By\u00a0Peter Epstein, CFA, MBA \u00a0\u00a0epstein.peter4@gmail.com\u00a0\u00a0\u00a0http:\/\/EpsteinResearch.com Viscount Mining\u00a0(TSX-V:\u00a0VML) \/ (OTCQB:\u00a0VLMGF)\u00a0is a project generator with 2 silver (\u201cAg\u201c) \/ gold (\u201cAu\u201c) properties in the Western U.S.,\u00a0Silver Cliff\u00a0and\u00a0Cherry Creek.\u00a0\u00a0Silver Cliff in south-central Colorado consists of 2,029 acres that were host to high-grade silver, gold & base metal production from 1878 to the early 1900\u2019s.\u00a0 A Pre-Feasibility Study (\u201cPFS\u201c) […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-110685","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/110685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=110685"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/110685\/revisions"}],"predecessor-version":[{"id":110686,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/110685\/revisions\/110686"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=110685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=110685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=110685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}