Sunday, January 19, 2014

Victoria Gold Is Making Progress In The Yukon

I first noticed Victoria Gold (VIT.V / VITFF) back in 2010 but I must have forgotten about them.  I'll revisit them now to see if I missed anything in the intervening years.  Their current CEO is different from the one they had when I first noticed the company.  That's good because at least this guy is a mining engineer.

Their Eagle gold project up in the Yukon has 2P reserves.  That's good; they've made progress on this project even though the 0.78 g/t Au grade isn't stellar.  Their estimated operating cost is just below the long-term average historical price of gold, so the project should remain viable as long as the cost doesn't rise.  They estimate an initial capital cost of C$382.8M.  Remember that figure.  I won't evaluate their other Yukon properties because they're still in the exploration stage with no 43-101 reports.

Their Nevada project is the only one remaining from several they were exploring in the state back in 2010.  This site used to be a productive open pit mine for gold and silver but I need to see a 43-101 report that covers more than just a few initial drill holes.

Now, back to that initial capital cost I mentioned above.  I looked at their financial statement for the quarter ending August 31, 2013, the most recent one available.  They had over C$14M in cash on hand and their burn rate is over C$300K/month.  They'll have to raise another C$368M to start operations at Eagle.  Photos of the site show a road network and mining camp, so some of the infrastructure is in place.

It's too early for me to invest in Victoria Gold but I am pleased that they have made progress on their most promising project.  I'll revisit this one later once they have secured sufficient financing.

Full disclosure:  No position in Victoria Gold at this time.