Source: The Gold Report 06/06/2017With primary targets still not accessible due to weather, secondary targets are the focus, and analysts Ryan Walker of Echelon Wealth Partners and Adam Melnyk of PI Financial weigh in on the latest results.
In a June 5 press release, Victoria Gold Corp. (VIT:TSX.V) announced assays for its Eagle West zone, a secondary target, directly adjacent to its primary Eagle Gold Deposit. The highlighted Eagle West "results include, 21.3 meters of 2.11 g/t Au in drill hole DG17-805C, 21 meters of 0.88 g/t Au in drill hole DG17-783C and 16.2 meters of 0.85 g/t Au in drill hole DG17-779C."
Following the announcement, Echelon Wealth Partners analyst Ryan Walker released a June 5 report on the Eagle West results confirming that "mineralized sheeted veins were encountered, as well as a higher grade, structurally controlled zone defined on the intrusive northern contact margin. Pervasive sericite alteration and massive sulphides were also encountered, both underscoring the Potato Hills mineralization concept."
He went on to point out that "the results from Eagle West indicate the potential for relatively quick mine-life additions, while also demonstrating that substantial exploration potential remains at the Dublin Gulch property along the Potato Hills trend mineralization concept, which is a component of our original investment thesis."
Walker concluded that he is maintaining a speculative buy rating with a $0.90/share price target due to the "Eagle project's strategic size, fully permitted status, district-scale land package with substantial exploration potential near excellent infrastructure, and situation in geopolitically stable Canada."
PI Financial analyst Adam Melnyk stated in a June 5 report that "Victoria controls what we consider to be a strategic asset; a sizeable gold development project, which can be developed for a reasonable initial capital expenditure, located in a top-tier political jurisdiction, with full permits for construction in hand."
Melnyk also pointed out "the 2017 drill program will focus largely on further exploration Olive-Shamrock zone, in addition to testing the five other regional targets. . .we expect Victoria will garner interest from a variety of gold producers as an M&A target." He is maintaining a Buy rating with a target price of $1.10. Victoria Gold's shares are currently trading at around $0.66.
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