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Exploration Expands Gold Resources in the Yukon

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A trio of analysts sees exploration upside at this company's fully permitted and shovel-ready project in the Yukon.

Eagle Gold Project

Victoria Gold Corp. (VIT:TSX.V) released on July 24 additional drill results from its 2017 Dublin Gulch exploration program. The results are from 17 holes in the Eagle West zone, and the company noted that "the results continue to demonstrate gold mineralization proximal to the Eagle Gold Deposit. . .mineralization at Eagle West is geologically similar to Eagle and represents a potential satellite deposit accretive to the main Eagle deposit."

Victoria's President and CEO John McConnell stated, "the Eagle West drilling this season clearly demonstrates that additional, near-Eagle gold mineralization exists at Dublin Gulch and underscores Victoria's ability to continue to build out new gold resources within the shadows of the Eagle Gold Mine infrastructure," adding, "exploration at Eagle West is notable not only for a positive application of the mineralization model but also for its potential to be utilized as overliner material for the Eagle Gold Mine heap leach facility replacing barren rock that was assumed for the 2016 feasibility study. This mineralized overliner is expected to have a meaningfully positive impact on early stage cashflows."

Analyst Ryan Walker of Echelon Wealth Partners, in a July 24 report, stated that the most recent results "are similar to those in the initial batch," adding, "he near-surface results continue to suggest the potential for relatively quick mine-life additions, while also demonstrating the substantial exploration potential remaining along the 18km-long Potato Hills Trend at Dublin Gulch."

Walker concluded that "our positive bias towards VIT shares reflects the project's strategic size, fully permitted and shovel-ready status, district-scale land package with substantial exploration potential near excellent infrastructure, and situation in Canada."

Echelon has a Speculative Buy rating on Victoria Gold and a target price of $0.90 per share. The company is currently trading at around $0.51.

Derek Macpherson of Red Cloud Klondike Strike Inc., in a July 24 comment, noted that "the Eagle West Zone is adjacent to the Eagle Gold Mine, and results continue to highlight the potential to add near mine resources." He observed that the "ongoing 2017 Dublin Gulch exploration program uses the Potato Hills Trend mineralization concept, which is proving to be an effective tool to identify targets. The concept led to the company also identifying a higher-grade zone on the northern contact margin of the intrusive at Eagle West," adding, "the company continues to drill, focusing on the Eagle Extension Zone adjacent to the western pit wall of the Eagle Gold Mine."

Macpherson concluded that "we expect continued exploration success to be a positive catalyst for the stock and should help demonstrate the exploration upside that exists."

Analyst Heiko Ihle visited Victoria's project earlier this month and stated in a July 24 report that "we view Victoria Gold's (VIT; not rated) Eagle Gold Project as a low cost, lower-risk project that should provide leverage to the price of gold. We were impressed with the projects low AISC, along with the fact that all necessary permits are already in hand."

Ihle also noted that "we think that Victoria is an attractive proposition for investors looking for leveraged exposure to the price of gold. Further, we believe the company has a lower risk profile than other projects within the Yukon, given that the project is fully permitted, has quality infrastructure in place, and is nearing construction."

"We expect Victoria to attract the attention of major producers once the project is fully de-risked from a financing perspective," Ihle concluded.

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1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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