As I recall, Chad Williams, President and CEO @ Victoria Gold, stated that the drilling results at Cove were the best of any junior in Nevada over the past 20 years. It was further stated, to best that I can recall, that the positive drilling results for Cove represented a new structure, not just a continuation of some former structure that Newmont exploited. If my recollection is correct, then the remodeling of reserves at our Cove property and the expected reduction in reported reserves is not as important as what many investors expect - as evidenced by the sharp decline in Victoria's stock. If in fact the "Helen Zone" is a new discovery that is the best any junior gold exploration in Nevada has achieved in the past 20 years, then the 4 holes drilled by Eco Bay really are not that important. After all, the new structure was uncovered by drilling below the upper zone, not from Eco Bay drilling results. IMO, VIT will not re-drill the 4 holes that Eco Bay drilled, for the purpose of remodeling the Cove resource estimates. I do believe, that any additional drilling in the upper zone will await the building of the adit. It will be much cheaper, quicker, and more precise to do any additional drilling in the upper zone of the "Helen Zone".
My conclusion, as stated before, the disappointing news on miscalculation of Cove resources, has created an unusual opportunity to add to core holdings at a deeply discounted price below what I feel the market will eventually accord our stock.
