Monday, August 06, 2007

Victoria Resource Corp AGM - July 31/07

July 31/07

Victoria Resources Corporation AGM

Hyatt Regency Hotel, Cypress Room

Present: Dr Raoul Madrid, Manager, Nevada Operations

Chad Williams, director

John McConnell, director

Dr Marcus Johnson, Dr Mike Russel plus 5 other geologists

The skinny: Your AGM reporter has been to 20-30 AGMs over the last 2-3 yrs and this was absolutely the most informative session I’ve ever seen. We were there for 3 hours.

Bottom line- expect new marketing, new website (approx 2 weeks), expecting larger drill rig in about 3 weeks to end of month at Cove-McCoy, probably working on NW-5 – it’s being set up for re-entry, being 300 ft from their target. You can see VIT is being set up to fly. Higher gold prices, better marketing, lots of targets. 8 shareholders this year at the AGM, up from the 2 last yr. – a 400% increase.

In the formal part of the meeting, exiting exec Roger Richer presided. 4 new directors were elected – Chad Williams, Hugh Agro, Sean Harvey, John McConnell.

Formal meeting over, the room was given over to Dr Raoul Madrid. Looking svelte after trimming 80 lbs from same time last year, Dr Madrid looked to be taking on the leadership mantle with aplomb. He spoke for much of that time, (there were 2 breaks). And there was much to talk about. VIT is awash in projects. He explained the what, when and why of VIT’s methodology in working their projects.

You have to remember that Dr Madrid headed a group with the US Geological Survey so he is used to guiding geologists. He will be the Obi-Wan to the other 9 geologists, which include two other Phds – Drs. Marcus Johnson and Mike Russel. It appears the legendary Dr Ralph J Roberts, who is 96 years old, has been retained as a consultant. So you have 4 Phds working for Victoria.

Dr Madrid was very professorial in tone and he noted that VIT is a company known for the care they take in mapping out the geological structural systems in detail so that they can plan where to drill with laser-like accuracy.

The first thing he talked about were all the gold belts in the world, focusing on Witwaterand in South Africa, where 1.5 B tonnes of gold has been mined. His theory is that there are 1.5B tonnes of gold in the various belts in Nevada and Utah. That’s a lot of gold.

In looking for the gold, VIT choses properties based on the following –

1-all represent old gold districts

2- they are present within known or recently mapped gold belts; some by VIT personnel

3-previous drilling with good gold results or well-defined as high grade gold districts

4-close to or includes older gold mines or recently exploited gold mines such as Cove-McCoy;

5-some contain gold inventories, defined by previous company, which can be significantly expanded

6-gold bearing structural systems > 55 metres width to 655 m with multiple orientations; useful for deep exploration

7-have high potential for large gold system development > 2 M oz/property.

These are, in essence, the rules VIT follows in determining whether gold projects are worthwhile or not.

Cove-McCoy

Cove-McCoy can be drilled year-round.

NW5 is set for re-entry. Only bad news was one drill rig right now, but the larger drill will be arriving in 3 weeks to end of the month. (It sounded like there may be drill rigs available in Vancouver.)

The $2 M from PP needs to make an impact, but that can come from the many targets that can easily cause a sensation. NW5 is 300 metres away from their target, Summit holes can be twinned to meet 43-101 standards, etc.

VIT spends their money for quality diamond drills at $100/ft, not $30/ft as with reverse circulation drills.

If I heard correctly, the scramble for more land to the west was due to Newmont NOT also transferring rights to land within a mile(?) of the JV land, which is apparently how things are handled normally. This subtle difference led VIT to speculate that Newmont may have discovered a new gold belt going from NE to SW.

There was a graphic showing the following but it went by so quickly I only got this: Drilling to define down and up plunge portion, shaped like upside down smiley face/cigar.

Similar to deep systems within the Carlin/Battle Mountain gold belt and Cortez Hills (same geometries).

-deep drilling revitalized McCoy district – large number of targets NOT found by previous companies.

(But don’t worry, I’m assuming that graphic will be on the website when it goes live in about 2 weeks. The website will be a great marketing tool).

Black Canyon -

Management Discussion and Analysis in the Report to Shareholders mentioned completion of a drill access road. All permits have been approved.

The drill rig that was at Relief Canyon is likely here right now.

It’s high up 5000ft, so needs to be drilled in the summer.

Grades up to 3699 g/t have been found by Victoria.

From one of the rock samples in the room, I could see visible gold. The gold specks show up when the sample is tilted.

Black Canyon has never been drilled before.

A potential problem might be the actress Sandra Bullock, as she owns land in the area.

Mill Canyon

Same as last year when I reported - only 4 out of 26 targets have been drilled.

Higher Open Cut and RJR are the areas of interest.

Drilling could be problematic as they need a dry winter.

How Raoul Madrid described the drilling at Mill Canyon:

Imagine the system looking like an open hand. They have found 3 fingers, but they want to find the palm (as represented by RJR) and they know it’s there as mapping has revealed a significant offset target for the larger RJR gold system. It’s an area dominated by fluidized breccias and they plan to drill it this year.

Mapping also indicated that Higher Open Cut contains a high grade gold system and is an excellent candidate for step out drilling.

Next time they drill, there will be tighter spacing between holes and not the wider spacing that was done previously.

Summit

Can be drilled all year round.

Awaiting permit in about 3 month

High grade nature determined by previous drilling, demonstrating it to be a Carlin-type gold system with excellent potential.

Incomplete drilling

Hilltop – drill maybe next spring, instead of drilling at a slant, they intend to drill straight down.

Relief Canyon – difficult drilling – but mapping continues.

Other tidbits

Victoria holds 106,531 acres of land of which 39,462 acres are 100% Victoria’s while

they hold 67,109 acres with Newmont, for which they incur no fees.

Cortez Trend may be a misnomer as it is rootless and the land below falls off and may have shifted.

After the AGM, the following questions are swirling in my head -

Why can’t VIT have US Gold’s market cap? $50 M vs $373 M

Robert McEwen has a solid reputation and is a brand name. He has done it before and can probably do it again.

But has he been involved in 12 major discoveries like Raoul Madrid has?

How many Ph.Ds do they have? VIT has 4, including the legendary Dr Ralph J Roberts, whose autobiography Passion for Gold, is still available at Amazon and Chapters.

How many other companies do as many detailed mapping as Victoria?