Cormark Securities assesses Victoria Gold (V.VIT) in light of its most recent results and action in the junior gold sector,
“Monday’s takeover of Richmont Mines (RIC-TSX; Tender – C$12.00 target) has
once again shone the light on Canadian gold developers and producers and how
valuable these assets are for larger producers with strong balance sheets. With
construction underway at the fully-permitted Eagle project, we believe Victoria
should attract a higher multiple as funds flow into the few remaining Canadian
assets that have not been taken out. We reiterate our Buy (S) rating.”
As VP Exploration Paul Gray drill holes and adds ounces, CEO John McConnell has begun the first phase of actually building a mine at the Eagle Gold Project in the Yukon. As Cormark points out, there are very few mining projects in Canada which are as advanced as Victoria. With the price of gold above $1300 an ounce, a project like Eagle is certainly going to attract the attention of the majors. Particularly because the project has solid infrastructure and the Yukon is a very positive mining jurisdiction.
How positive? Well on Friday the Yukon Mining Alliance is putting on an Investors Lunch in Toronto. Featured speaker? Sandy Silver, Premier of the Yukon. That sort of commitment would make any major very comfortable with an investment in, or the takeover of, Victoria Gold.
You can get the Cormark Report here: