According to Chad Williams, President and CEO of Victoria Gold, “BH-4 is clearly another exceptional exploration hole from Santa Fe and adds an important new dimension to what appears to be a very large gold system.”
In short, the Company has identified 1.63 g/t gold across 231.6 meters. Again, these results are absolutely terrific. I hope by now everyone can see what’s going on at Victoria. For the slower ones like myself, here’s the scoop. Victoria seeks to have in future operation two, lower-risk mines with aggregate production of at least 200,000 ounces per year in top jurisdictions (Eagle Gold in the Yukon and Cove in Nevada). Eagle Gold is very large, will create a critical mass, will offer steady production, with above-average gold price leverage and obvious exploration upside. In terms of production at Cove, the project has high grades, low capital expenditure requirements, which should result in significant free cash flow, not to mention the tremendous exploration upside available there as well.
But Victoria is not going to turn its back on its exploration roots. Oh no. As illustrated by today’s announcement, the Company will surely continue its exploration efforts at Santa Fe, which has several fantastic initial holes and appears to be a very large system. But, the Company has several other high impact properties which are drill ready as well. So look for the drills to keep turning in 2010.
