Victoria Resource Corp. (http://www.victoriaresource.com) TSX-V symbol VIT.
Size of Cortez Trend land position: 209 square km.or 80.7 square miles
1) Mill Canyon (49% working interest) 93 square km, or 35.9 sq. miles. Located 1.4 km to the east of Placer Dome’s Cortez Hills discovery. June 30th Victoria announced: "Significant [drilling] results from OC-36 include 10.4 grams per tonne gold over 26 metres [at a depth of 503 to 529 meters]." Restated in the English system, they found .36 ounce per tonne (.3 and above is considered "high grade," and may be required to make certain underground mines economic.) over 85 feet (nice thickness, but how far and how long?) at an average depth of 1,692 feet. (most open pits do not go deeper than 500 to 1,000 feet, so we are probably talking about underground mining to get close to the Lower Plate). Victoria's Feb 8, 2005 news release announced the results of seven more deep holes drilled totaling 4,850 meters, which "outlined a very large `Carlin Style' alteration' system," however, unfortunately the additional drilling did not find any assay results for any significant lengths comparable to the aforementioned drill hole OC-36.
The "Newmont connection." Victoria also announced Newmont's renegotiated back-end right: "Newmont has a one-time back-in right [to earn a 51% interest in the property], which is exercisable during the period beginning on January 1, 2006, or upon completion of $5 million in expenditures on the property by Victoria, whichever is earlier.."
2) Hilltop-Slaven (49% working interest). 116 sq. km, 44.8 square miles. Newmont has a 51% back-in right, but Victoria has 100% lease on the mineral rights.
Outside of Cortez Trend in northwestern Battle Mountain-Eureka Trend
3) Preble-Pinson (49% working interest). 53 square km or 20.4 square miles. Newmont has a 51% back-in right. This is located east of Winnemucca close to where highway 789 and Interstate 80 intersect.
Active mines in Cortez: None. Historical mining includes working high grade silver veins on the Mill Canyon property going back to 1863.
Amount of proven reserves in Cortez: None. No resources, no production, no revenues yet.
Other projects outside of Cortez: None. 100% exposure to Cortez.
Fully diluted shares: 47.2 million shares, 33% insider
Working capital: $C3.3 million for last quarter ended 31 Aug 2004
Outside ownership/largest shareholders. 33% owned by Bema Gold.
Management/Strategy: Victoria is a pure exploration company, therefore the strategy is to keep drilling until they "hit." They have two rigs on the property, but have not published their drilling program yet. To finance the drilling, they have everything lined up through Newmont.
Bema Gold began with 28% ownership and increased its stake by buying up all of Victoria's new share issues. Bema retains a right of first refusal, and has stated an intent to hold its shares. As an adventuresome intermediate exploration company, Bema has demonstrated competence and longevity both with its very successful Kupol mine in Russia and it's promising (at $450+ gold) low grade copper and gold project at Cerro Casale in the high Andes of Chile (Bema owns 24%, and along with Arizona Star is joint-ventured with Placer Dome on this deal).
Analyst coverage: On 3 Aug 2004 Raymond James issued a "Strong Buy 1"-rated research report on Victoria Resources, which noted "Victoria's excellent drill results from the Mill Canyon property are quickly solidifying the company's initial geological theory that the property represents a faulted-off portion of the gold trend hosting the Cortez Hills and Pediment deposits to the west (page 1)...Four distinct zones were identified over a minimum width of 185 metres and a minimum length of 125 metres (page 12)...we assume at 15% probability of finding another Cortez Hills deposit and use a value of 5.25 million ounces (proven and probable reserves at Cortez Hills) multiplied by a market "in the ground" value of $US50 per proven and probable ounce [yields an expected value of C$41.4 million] (page 21)..."
The "X-Report" published 23 June 2004 by Haywood Securities of Canada, highlights Victoria Resources as one of the companies that it thinks will most likely benefit from the Cortez Trend development. The others include, in the order they are listed, White Knight Resources (TSX-V, WKR), Coral Gold Corp. (TSX-V, CLH), Miranda Gold Corp. (TSX-V, MAD), J-Pacific Gold (TSX-V, JPN), Levon Resources (TSX-V, LVNH), NDT Ventures (TSX-V, NDE), and Nevada Pacific Gold (TSX-V, NPG). This seems to be based on a theory that the real "action" will take place running north to south through the Cortez Hills Hubs.