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The Company's Eagle Gold Project in Yukon Canada hosts a National Instrument 43-101 compliant Reserve of 2.3 million ounces of gold.
Message: Drilling Results Analysis & Victoria Outlook
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Recent drilling: Allthough NW8 drilling results indicated further high grade gold results @ .403 oz. per ton for the longest intersect of 30ft., drilling results from hole NW1 through NW7 had longer intercepts:
(NW1 34 feet @ .642 o/p/t)
(NW5 45.5 feet @ 1.087 o/p/t - 138.5 feet @ .0478 o/p/t - 203 feet @ .37 o/p/t) (NW6 65 feet @ .457 o/p/t)
(NW7 50 feet @ .0475 o/p/t)
Today's drilling results were not as robust as some of the past drilling results, but they were still pretty much in line with the intercepts mentioned above. Should drilling results from NW9 - NW12 have similar results, IMO, Vitoria will announce its next drilling phase at Cove McCoy - that phase could include another 40 holes that could be drilled from an adit near the bottom of the Cove Open Pit. I believe this phase of drilling, should it occur, will be designed to identify how much commercial gold reserves are actually available possibly leading to an eventual feasibility study.
Victoria's stock (.76 C today) has continued to fall on reduced volume - and much of that weakness is already reflected in its stock IMO. Current wekness, IMO, has been due to: management's lack of providing adequate information flow as it relates its drilling activities and other corporate activity to increase shareholder value; investors fear that drilling results would not be as robust as former drilling results; Victoria's problems obtaining a qualifed drilling crew for a third rig; poor invetor sentiment for the entire junior gold exploration sector; and the recent $150 dollar drop in gold bullion prices.
IMO, most of the issues mentioned above should show a significant improvement in the coming months: IMO, gold bullion has already established a low for this year, and I expect its price to be well above $1,000 an ounce before year-end. I also expect to see a substantial improvement in market sentiment toward the entire junior gold exploration sector, which will eventually lead to higher prices for most of the stocks in this sector - including Victoria Resources. Also, one shoud note the seasonal patterns will start favoring high gold stock prices towards the end of this summer. I believe that management at Victoria will eventually be successful in hiring a qualifed drilling crew that will enable this company to operate a third drilling rig. With a third drilling rig, information flow on drilling activity is bound to increase incrementially. The more frequent the news flow, the more likely its stock price will be supported at a higher price level than its current price. Regarding information flow, Victoria should have another press release on NW10 in the next couple of weeks. I also believe management will continue to find new ways of marketing this company to the public and expanding its shareholder base.
The bottom line, IMO, investors would be well served to take advantage of today's low price for Victoria and add to their positions.
Cautionary statement: Investing in Junior gold exploration companies involves a high degree of risk and also substantial upside appreciation potential. You should limit your investments to risk capital that you can afford to lose a substantial portion of. Also, you should note that I personally own a substantial position in this company. The statements above reflect my opinions, and I urge all investors to do their own due diligence before making any investment decision to buy this stock.
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