By The Gold Report
he Gold Report examined Victoria Gold’s Eagle Project in February and is now checking in on the company’s progress after two back-to-back news releases last week.
In a February 3 article, The Gold Report examined the funding Victoria Gold Corp. (VIT:TSX.V) had in place to move the Eagle project in the Yukon forward. Victoria Gold is now utilizing those funds to advance Eagle.
In a March 27 press release, Victoria Gold announced it had awarded its Eagle “engineering to JDS Energy & Mining in partnership with Hatch.” John McConnell, President & CEO, explained that “the work over the coming weeks will, by advancing the engineering, enable commencement of site construction activities.”
In the Gold Speculator’s March 28 edition, Byron King highlighted that the “JDS/Hatch team have extensive experience working together on northern, cold-climate projects. . .and the recently completed Gahcho Kué Mine (in the Northwest Territories), which was built and brought into operations ahead of schedule and under budget.”
The following day, Victoria Gold issued another press release detailing its exclusive agreement with Finning International Inc. to purchase a mining fleet for approximately US$50 million. “Through this agreement, we were able to secure more favorable pricing and terms than estimated in our recent Feasibility Study and we have managed to further de-risk the Eagle Gold Project without compromising our strong balance sheet,” stated John McConnell, President & CEO.
In a March 28 Raymond James report, analyst Chris Thompson compared Victoria Gold’s Eagle project to Exeter’s Caspiche project in Chile and Fortuna Silver Mine’s Lindero project in Argentina to support his position that “VIT is attractively valued relative to XRC’s proposed transition price and Lindero’s transaction price (paid by FVI last year), on a P/NAV basis, assuming base case $1,300/oz Au.” Thompson points out that “the proposed acquisition of Exeter (XRC-TSX) by Goldcorp (G-TSX) in an all share transaction worth C$247 mln for XRC’s Caspiche project in Chile serves as a timely reminder of the value proposition offered by VIT’s Eagle project.”
Byron King concluded in the Gold Speculator’s March 28 edition that “Victoria has funds in the bank and a plan to advance its Eagle project. Eagle is fully permitted and entirely doable. With Victoria, the big payday is just a question of time and patience.”
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1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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