Viscount Mining Corp. [VML-TSXV; VLMGF-OTCQB] has entered into an exploration earn-in agreement with a wholly owned subsidiary of Centerra Gold Inc. [CG-TSX]. Centerra is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Asia and other markets worldwide and is one of the largest Western-based gold producers in Central Asia.
The agreement covers the company’s Cherry Creek property located in White Pine County, northeastern Nevada Initially, Viscount will be project manager.
The Cherry Creek Project consists of 320 unpatented and patented claims covering more than 2,658 hectares. The property contains more than 20 past-producing mines where high-grade gold and silver production came from up to the 1920s.
Jim MacKenzie, CEO of Viscount, commented, “We are very pleased to have entered into an agreement with a company of Centerra’s stature and experience, and look forward to a long and mutually beneficial relationship.”
Mark Abrams, vice-president of exploration of Viscount, stated: “Cherry Creek is one of the few remaining underexplored mining districts with geological attributes to the formation of both those in production at nearby Kinross’s Bald Mountain mine, and Newmont’s Long Canyon mine. We are excited to have Centerra bring their exploration and financial strength and join us in exploring the Cherry Creek project.”
Under terms of the agreement, Centerra can acquire a 70% interest in the property by making annual payments of US$250,000 over four years and spending US$8-million on mineral exploration over four years. If Centerra’s option vests, then Viscount and Centerra will enter into a joint venture agreement:
The Cherry Creek exploration property is in an area commonly known as the Cherry Creek mining district, located approximately 50 miles north of the town of Ely.