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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: Outlook for Junior Gold Stocks & VIT
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Many investors are perplexed about the underperformance of junior gold exploration companies relative to the rising price of gold and the relative performance of senior gold producers. IMO, some of major factors that are creating this underperformance are the ongoing credit crunch and a flight away from risky assets. Many of the junior exploration companies are going to find it very difficult in raising equity capital thought stock offerings or credit financing to bring a project to a producing stage. So it is going to be vital to participate in only those juniors that continue to demonstrate success in finding gold and adding to their reserves. It is equally important to be investing in a company that has a proven track record of being able to raise capital in a difficult credit crunch environment, either through private placements and/or access to capital from senior gold producers that have little difficulty in raising capital to complete drilling programs and bring a project to a production phase. A lack of drilling success, or the inability to raise capital to complete drilling programs and bring viable projects to a production phase is destined to reduce stockholder values. Right now the market is not doing a good job of discriminating between good junior exploration companies that share the charteristics mentioned above and those that don't. IMO, it won't be long before investors with risk capital recognize where the true values are - and those are the investments that can potentially be very rewarding. Victoria Resources, IMO, certainly fits the profile of a company that has the potential to be a very profitable investment. Victoria continues to report high grade gold intercepts and they have had no difficulty in raising capital in a very difficult economic environment. Victoria has the potential to access capital from the equity market and deep pocket senior gold producers including Kinross Gold and Newmont Mining - which are linked at the hip to Victoria Resources via joint venture relationships or outright equity investments. There is no guarantee of investment success in investing in high risk junior exploration companies, but for my money's worth, the odds are substantially stacked in your favor if your investing in Victoria Resources.
Keep in mind that I am a large shareholder in this company and I certainly have a vested interest in their success. You should only invest in this company or any other junior exploration company if you have a high risk profile and you have done your own due diligence before making an informed investment decision.
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