The share price of Victoria Gold (VIT.V) has been under a lot of pressure lately as it has been sliding all the way down to the lower 40 cent range. A surprise, as not only is its main Eagle Gold project remains one of the most appealing permitted but undeveloped gold projects.
On top of that, the company has continuously been releasing positive updates and even the drill holes which were targeting the potential mineralization below and right next to the open pit boundaries used in the feasibility study have confirmed the mineralization appears to be continuing at depth, with for instance almost 608 meters of 0.56 g/t gold (including a higher grade zone of 120 meters at 0.95 g/t gold from a depth of 50 meters), 122 meters containing 0.71 g/t gold as well as 624 meters at 0.5 g/t gold and 423 meters at 0.59 g/t gold (the assay results of the last two holes were released a little while ago).
With a Net Present Value of C$508M, the current enterprise value of approximately C$210M seems to be too low, especially when you are taking the potential to add more ounces to the mine plan into consideration… We would be surprised if Victoria Gold is still ‘around’ one year from now.
Go to Victoria’s website
The author has a long position in Victoria Gold. Please read the disclaimer
