www.vitgoldcorp.com
Victoria Gold Corp. is an exploration company with interests in 17 gold projects located in North Central Nevada covering over 50,000 hectares (120,000 acres).
The Company’s strategy is to add value per share through efficient exploration, accretive acquisitions and effective marketing.
Maintaining a low risk profile through project diversification sound financial management and operating in secure jurisdictions are key priorities for Victoria’s management team.
Victoria Gold Corp significantly extends Helen Gold Zone at depth
Shares in Victoria Gold Corp. (TSXV:VIT) climbed after the company reported highly encouraging results from drill hole NW-15 at the Helen Zone of the Cove Project in Nevada. The rally in the junior gold company was all the more impressive considering the fall in both commodity prices and global stock exchanges.
The Helen Zone is located only 600 meters north-west of the Cove open pit, which historically produced 2.3 million ounces of gold and 100 million ounces of silver. Victoria Gold Corp believes the Helen Zone is not an extension of the Cove open pit but an entirely new gold discovery.
Investor’s pushed the company higher after it reported a 274.3 meter gold interval with an average grade of 2.5 grams per tonne, but crucially, contained a number of considerably higher grade zones. NW-15 was completed to a total depth of 835 meters; previous drilling had never tested for mineralization below 150 meters.
Highlights from the 274 meter section included 5.5 meters @ 32 grams per tonne gold from 431.9 meters and 6.2 meters @ 14.22 grams per tonne which lied within a broader 12.7 meter zone @ 9.18 grams per tonne gold.
"NW-15 returned very high gold grades over meaningful widths within a much larger, anomalous gold zone", said Chad Williams, President, CEO, and Director of Victoria Gold. "This is especially encouraging since NW-15 intersected gold mineralization a substantial distance away from what is believed to be the core of the Helen Zone system - we have once again succeeded in demonstrating that the Helen Zone can return high grades of gold over a wide area."
Victoria Gold Corp has now completed fifteen holes on the Helen Zone, which has outlined a “U-shaped” zone with a fairly steep plunge to the south-east.
“The widest intercepts of gold mineralization encountered so far by Victoria in holes NW-1 to NW-14 have been centered on an area where two major structural zones intersect (one oriented northwest-southeast and the other oriented north-south),” the company noted. NW-15 appears to have intersected the bottom edge of this intersection system, yet returned robust gold intercepts.”
Looking forward, the gold junior expects to complete an adit into the Helen Zone to allow for less costly and more accurate drilling.
Victoria Gold Corp holds a 100% interest in the project, but the original owner of the mine, Newmont Mining, maintains a back-in right if a feasibility study is completed on a minimum 500,000 ounce resource. Should the back-in right be exercised, the property will revert to a 51% Newmont Mining / 49% Victoria Gold Corp joint venture with Newmont as operator. Should Newmont elect not to back-in, Victoria will pay a US$1.5 million cash payment to acquire Newmont's remaining rights to the leased property and will grant Newmont a sliding scale net smelter return royalty ("NSR") which will be a maximum of 5%, less any other royalties that apply to the property or portions of the property, but not less than 2%, for a gold price over US$500 per ounce.
