Viscount and Guardian jointly to aquire interest in Mexican gold-silver concession

Partners Consolidated Viscount Resources (VSE) and Guardian Enterprises (VSE) can jointly acquire a 31.85% interest in a 12,000-acre gold-silver concession in Mexico’s Durango state.

Viscount and Guardian are required to pay owner Minera Cosalteca US$150,000 over six months, and spend US$750,000 within 12 months to develop a high-grade, underground mining operation at Las Coloradas.

The mill is capable of processing up to 100 tons per day.

The remaining interest in Las Coloradas will be held 51% by Cosalteca and 17.15% by Nevada-based Vanderbilt Gold (NASDAQ). Cosalteca’s interest will be subject to a 2-year option, which Viscount, Guardian and Vanderbilt can jointly purchase for US$3 million.

Although no reserve figures are calculated, sampling from underground working faces returned values ranging from a low of 0.65 oz. gold and 28 oz. silver per ton, to a high of 2.92 oz. gold and 183 oz. silver.

The high-grade, vertical oreshoots occur within a shear structure at the intersections of crosscutting faults. The structure is traced on surface over a length of 3.1 miles, with a consistent width of more than 6.6 ft.

Len Harris, president of both Viscount and Guardian, expects to start turning a profit at Las Coloradas as early as March. He anticipates a minimum yearly production of 25,000 oz. gold, at a cash cost of US$105 per oz.

Each company has working capital of $800,000, and financings for each are in the works. Guardian currently has 9 million shares outstanding, while Viscount has 3.1 million shares outstanding.