Re: Next Steps/eldreco
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Welcome To The VIT Chat Board
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: Next Steps
I was unable to catch the conference call, so if it provided different information then I understand from the VIT website, I'll apologize in advance.
I'm not sure if Thursday's Preliminary Assessment ("PA") and initial National Instrument 43-101 gold resource calculationrelease puts Newmont at a decision making point yet. The Victoria website mentions the "delivery of a positive feasibility study for a minimum of 500,000 ounces of gold resources. Upon delivery of such a study Newmont must make a decision with respect to the back-in within 90 days or the back-in right terminates. "
The current updated Cove - Helen project schedule proposes that study happening in 2012. This 41-101 certainly helps in going in a positive direction, and it might be nice if Newmont decided to join up earlier, which they can, but I believe they still have time to sit back and watch as things unfold.
On the other hand, as it stands, IMO, VIT , having surpassed all the initial lease holding requirements, can continue to go at it's own spending pace on work that has to be done anyway knowing that every dollar spent at this time obligates Newmont, if they decide to join, to spend $2.50 latter on as the project gets more into the nuts and bolts, and the overall project cost may be cheaper for VIT in the long run, making their ROI better. VIT doesn't appear to have a good cash flow source yet, although that may be changed by other projects developing quicker, so any near term capital obligations before they get one might possibly mean more dilution or selling of assets. Hopefully, some answers may come with the next expected press release.
Getting minerals in volume out of the ground these days eats up quite a few birthdays, but being along for the ride can be very profitable when it works out.
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