Victoria Gold Corp VITFF

RE:RE:RE:RE:RE:RE:Frustrating stumble of Sp

[givemeabreak1]

I have read different numbers for snowline road cost and there is a big variance.  The 45 million is generally thought as being the highest using the West Route with about 26 million being the low side of the West Route.  Using the South Route the high side is thought to be Just over 20 million with the low side at just over 14 million.  The south route is Canol road which is a seasonal road built after the 2nd world war and still maintained by the Yukon Government.  Yukon announced upgrades to the road to include replacing some 27 bridges or crossing points.  The road in from here will be about 142 km of new road.  As a comparison Coffee had 214 km of new road at a cost of 30 million and they only have 2-3 million ounces of gold!

I have seen some rough resource estimates for Snowline and they are around 6 million ounces already and still open in most directions.  Smart money would take Snowline out and sit on it when the time is right!  Victoria Eagle is mining what .65 gpt material with about .5 gpt to cover all costs so net .15 gpt left for profit.  Snowline will likely exceed 1.5 gpt with the same .5 to cover all in cost so net 1gpt for profit so over 6 times value of Eagle.  More importantly, if gold prices fall to the $1700 to $1800 level Eagle will operate and deplete their resource for no profit as it is cheaper to operate at break even than put a mill on care and maintenance.  Snowline would still be generating cash.  So any acquirer is taking a much greater risk with Victoria.  

Advantage with Victoria is that it is producing and you know what you are getting and if gold prices remain elevated you will be generating cash for at least 5 years before Snowline begins production.