Wellington West raises target to $1.40

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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.

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cac123

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Wellington West raises target to $1.40

posted on Jul 23, 2010 07:37PM

As quoted in Investors Digest, Wellington West believes VIT undervalued. Based on a long term gold price of $925/oz and Cdn/US $ FX rate of .90 their target is $1.40. Their pricing model gets even better if long term gold prices remain at or near $1200.

" A US $100/oz change in our long term gold price assumption translates to a 30% change in our blended NAVPS"

Significantly, they feel that the market has failed to respond to VIT in part becasue of known issues with Sante Fe. WW believes these issues are not insurmounatble.

" We believe this newly found mineralization is not a down-dip extension and that a more typical drill-collar configuration should follow once vectors have been established. Should phase 2 drilling be successful, one could draw parallels to Allied Nevada's sulphide zone. Phase 2 exploration is targeting an enevelope that could yield over five million ounces of mineralzation."

I have been one of the voices on this forum expressing concern about the difficulties with Sante Fe. I would LOVE to be wrong and Wellington West obviosly thinks I am. I hope they are right!!!!