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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 Activity Update, Etc.
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I had a brief chat with Chad Williams, President and CEO at Victoria Gold today regarding issues that I was concerned about. I asked him some specific questions regarding industry issues: delays in obtaining assay results; availability of drilling rigs and their drilling crews; shortage of skilled personal; increases in drilling costs; and issues directly related to Victoria Gold.
As I suspected: Delays in assay reports is widespread, so this is not company specific. The significance of these delays is the fact that these delays will slow down future drilling in the industry - companies need to get their assay results and study them before they determine the next targets to drill. Future drilling activity will also be restrained due to a shortage of rigs and their drilling rigs; shortage of skilled personal, and increased costs of drilling. Why is this information important: speculators lose interest in exploration companies when there are long delays in drilling activity and are prone to take profits if they don't see any catalyst that will stimulate demand for their stock. However, one should note that even if drilling activity slows down, if a company continues to show positive drilling results, the price of its stock should reflect their successful drilling results. Of course, one thing that could override slowed drilling activity, etc. is the prospect of a further rise in the price of gold over the coming six to nine months.
Current status on Victoria's drilling activity and assay results: According to Chad our company has received 7 assay reports - with many more in the pipeline. I suspect that our company will receive the balance of its drilling results over the next couple of weeks. According to Chad we are ahead of schedule in holes drilled for this season and the costs of drilling to-date is below budget. Least to say if there are any disappointments from the drilling results, it will be likely that significant profit taking will occur. At the present time our company has three drilling rigs operating. I suspect that drilling at Santa Fe for this year is pretty much done, and that our company will soon announce some other properties that they will be drilling on before year-end. Don't be surprised to learn that VIT may be doing some additional drilling at our Cove property sometime during the fourth quarter of this year - this is expected to happen despite the fact that a proposed adit at Cove, if approved, won't be completed until next year. I will be surprised if we don't have some drilling results within the next two weeks.
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