Monday, August 07, 2006

VIT AGM Aug 4/06

Victoria Resource Corporation (VIT) AGM Aug 3/06
Ian McLean, VP, Investor Relations (BGO & VIT)
Raoul Madrid, VIT geologist

VIT office in Reno – close to facilities – labs, permit dept, etc / 12 employees

8 mining properties including a new one – Fourth of July property
Virtually all leased from Newmont, who has back in rights for half the action.
Newmont needs a property to yield 4M ozs and 46% IRR before they will back in.

Started with 2 rigs - 1 at Hilltop; 1 left to drill Romarco’s Nevada property (by process of elimination - must be from Preble); will be back in Sept.

3 rigs on VIT properties by mid Sept, maybe 4. (2 of them sourced from Alaska)
They are core rigs, not reverse circulation rigs.

Hilltop - one drill, right now at 1765m, intends to drill to 3000m. Their theory is that the gold could be found there, beyond the breccia zone.

Mill Canyon – target-rich. VIT has drilled 4 out of 26 targets. Good results on 3 of 4 but will relook at target #4 (something about intrusives), leaving 22 targets left to drill.
RJR – proposed holes not in budget for 2006 / ‘zone displacement’ to RJR West, which appears to be a theme (to be discussed later).

Cove-McCoy – Newmont reluctant to give this property up at first; reclamation issues to be addressed by Newmont; all exploration stopped by Newmont; 2.0M gold oz already there, no reclamation issues for VIT. VIT is looking at Cove South. (Previously, I spoke to Tom Garagan at the last BGO AGM, he mentioned this property looked interesting.)

Black Canyon- visible gold – vug / drilling needs to be done before Nov as property is 10,000 ft high.

Relief Canyon –NewGold is there (NGLD – OTC/Mkt cap:$25M), they spent only $50k in 1999, now worth much more. NewGold’s mine will be in production by June 07. VIT has all the surrounding area.

Fourth of July – a new property – an old silver district, gold was never mined here. Midway Gold’s (MDW.v – market cap: $75M) nearby property at Spring Valley will have a resource calculation soon. (I remember looking into Midway a few years ago – they had a similar arrangement with Newmont that VIT has. Only a multi-million oz gold resource would bring back in Newmont).

Rigs –1) Once Hilltop is finished drilling, the rig likely will go to Relief Canyon.
2) Rig from Alaska will go to Cove-McCoy in August
3) A second rig from Alaska will likely go to Black Canyon (drilling before Nov)
4) Return of the rig from Romarco
Thus, by mid September, they might have 4 rigs going.

Other tidbits – PDG had a policy of no step-out drilling. Some of the data for Cortez area, they‘ve had for 30 years but they did nothing. Cortez Hills was a condemnation hole.
I took that to be a comment on the slowness of large-cap companies, like turning the Titanic 180 degrees.

Another comment was the ‘zone displacement’ occurring at RJR and elsewhere. I asked a lot of questions regarding White Knight Resources (WKR) since I have some – like where were WKR properties in relation to VIT’s. I asked where the Cortez Trend was. It was interesting to note that Mr Madrid never called the area VIT is in as part of the ‘Cortez Trend’. He always called the area as part of the Battle Mountain goldbelt.

My opinion: Perhaps the Cortez Trend is all marketing and the current fiasco with USGold/ WKR/Coral/Nevada Pacific/regulation problems, etc is all smoke to cover up the fact that not much gold has shown up on the Trend because of ‘zone displacement’. Looks like I won’t be able to ask any questions at WKR’s next AGM because I will be out of WKR. My prediction is that the market caps of WKR(~$140M) and VIT (~$32M) will reverse.

McEwen is not unfamiliar with VIT as they have chatted.

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