GREY:VITFF - Post by User
Post by
bajanjohnon Jan 29, 2013 12:40pm
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Post# 20906296
BMO Upate
BMO Upate ____________________
VICTORIA GOLD (VIT-TSXV)
JOHN HAYES, P.GEO.
Title: Additional Olive Target Drilling Results
Impact: Potentially Positive
Details & Analysis: Victoria Gold released drill results from its exploration drilling program at the Olive target. The Olive target is located 2.5km northeast of the company’s flagship Eagle gold project in Yukon and is part of the Potato Hills trend. Results from nine intercepts in five holes returned a weighted average grade of 3.76g/t gold over an average intercept of 2.8m. The grades represent an improvement from the five drill results released in October 2012 (3.76g/t vs. 2.15g/t) over a shorter average intercept (2.8m vs. 6.6m). The holes were drilled in September 2012. The company highlighted hole DG-531C with an intercept of 26.5m grading 2.69g/t. While the exploration program remains very early stage, the results underscore the potential for the Olive target to contribute resources to complement the Eagle project. Given that Eagle is a low-grade deposit, any incremental improvement in grade would help project economics. Metallurgical work is ongoing, as mineralization in the district is often associated with arsenopyrite. No value is assigned to exploration upside at Dublin Gulch in BMO Research’s estimates. Using spot metal prices, Victoria’s shares are trading at a 49% discount to our 10% NAV estimate of US$0.45/share, below the junior and emerging producers in BMO Research’s coverage universe, which trade, on average, at a 27% discount.
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