Viscount Mining (TSXV: VML) and a subsidiary of Centerra Gold (TSX: CG) entered into an exploration earn-in agreement related to Viscount’s Cherry Creek property located in White Pine County, Nevada.
The Cherry Creek project is located in north-eastern Nevada, some 50 miles north of Ely. It consists of 320 unpatented and patented claims covering 2,658 hectares where more than 20 past-producing, high-grade gold and silver mines are hosted.
Under terms of the agreement, Centerra has the right to acquire a 70% interest in the property by making annual payments totalling $250,000 over a four-year period and spending $8 million on mineral exploration costs over the same time frame.
If Centerra’s option vests, then the companies will enter into a joint venture agreement in which Centerra would hold an initial interest of 70%, including the property and any properties in the area of interest, and Viscount would hold an initial 30% interest.
“Cherry Creek is one of the few remaining under-explored 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,” Mark Abrams, Viscount’s director and VP of exploration, said in a media statement.
“We are excited to have Centerra bring their exploration and financial strength and join us in exploring the Cherry Creek project.”