The lack of status updates from VGCX management on the landslide are to be expected considering what they're dealing with and the fear of the unknown has taken hold and that's the only reason VGCX share price is temporarily where it is. The day traders and short sellers trying to make a quick buck have suddenly showed up in droves like flies on a fresh heap of Buffalo dung! I've owned VGCX share for years now and have been posting on this board for just as long and don't ever recall so many new posters showing up to tell us all how bad this is, that VGCX is DONE, going bankrupt, etc, etc. Please...you don't know anymore than the rest of us!
Any long term serious VGCX investor knows that VGCX shares are worth far more that $1.30 a share or a market cap of a mere $91 million CAD. Hell, I've seen start up gold miners with a 1/2 dozen claims that trade higher than $1.30 a share that never produced an ounce of gold. As one poster mentioned earlier today, go look at VGCX presentation and the assets they hold and then seriously ask yourself, is VGCX is really only worth a $1.30 a share? When this type of incident occurs, there are always forces at work that will drive the share price down in hope that they can bankrupt a company and buy the pieces ar a fire sale. The SEC doesn't help by allowing the shares to trade when they should be halted until a expert assessment and detailed news release occurs but as we all know, the SEC crooks work for the institutions and not the retail investors so not much sense jaw boning further about this topic.
Now for those here that have a VGCX share holding time horizon longer than a few hours or days and aren't buying the worse case scenario doom and gloom hype, this is what I'm seeing soley based on the Northern Miner Video of the slide area, until VGCX management is ready to provide a more detailed update.
NOTE! You'll need to view this on a computer with a decent sized screen and not your iPhone. You'll also want to enlarge / maximize the video window. The video I'm referring to looks like only a photo until you mouse over it and it is actually a video of a fly over that give a pretty good view of how bad this thing is.
Photos of Victoria Gold accident show heap leach landslide in Yukon - The Northern Miner Now; in viewing this video closely you can see (as was mentioned by Iamkingofme in a post yesterday) that the leach pad is largely in intact. The breached containment area appears to be quite small as compared to the entire leach pad, as is visible along the bottom left corner of pad. Yet the market is treating this incident like the entire leach pad slid off the side of the mountain and is beyond repair. Now I'm no engineer but I highly doubt Victoria Gold can't resolve this issue. At what cost and timeline? Well that's what we're all waiting for when an update finally comes from VGCX management. Environmental damage extent?... who knows but considering there seems to be a catch pond just below the Recovery Plant that is NOT overflowing and has plenty of room for more solution (if it even got there) would suggest that any leaked solution is far from running into and contaminating rivers and streams so I'm assigning that a low risk probability.
If you look lower down in the photo, it appears that a second (related) slide occurred in the area just to the right of the Recovery Plant that has buried the road below. The impact on operations of that lower slide is probably least significant in all this.
So now, knowing what I now know and yes a picture is worth a thousand words, I'm certainly not selling a single share and if I didn't already own so many shares I would be taking advantage of this situation. In the meantime short sellers, yoiu best keep a tight watch on your orders because if I'm right about VGCX management fixing this and getting production going again, you won't want to be short when that news is announced.
JM has a lot of reaons and motivation to fix this and if anyone thinks JM can't raise $50 million (if that's what it even takes) to get past this then you don't know JM. He's been in this game a long time and has connections like the folks at GMT Capital, Osisko, or Queen's Road Capital, just to name a few. And you can bet they'll be licking their chops to finance this repair if it means getting production back on track, especially at today's gold price and a 150 to 200K ounce producing mine.
Is this a risky play at this stage, you bet it is! But then if you weren't a risk taker you wouldn't own VGCX shares in the first place.
My opinion only, please DYODD.
HB77
PS! And Iamkingofme, thank-you for your post yesterday and especially your comments about the status of the leach pad and the collector sump and what VGCX management needs to do in the near term to get production back on track. You sound like you either work at the mine site or closely know someone who does and so any updates you can provide are appreciated!