This chart not only depicts Nevada Pacific
Gold projects, but also red triangles where 10 million ounce reserves
have already been proved up. Source: Nevada
Pacific Gold Corp
Projects outside Cortez:
1) Magistral, Sinaloa, Mexico. A producing mine, projected 30,000
ounces at a cash cost of $250 per ounce.
2 ) Limousine Butte, Carlin Trend, NV. Joint ventured in Sept
2004 to Placer Dome Gold.
3) Amador Canyon, Lander County, NV
4 ) Buffalo Canyon, Nye County, NV
5) Clover Valley, NV, north of Limousine Butte
6) South Carlin, NV, on Carlin Trend
7) High Dollar, NV, on Carlin Trend
8) Timber Creek, NV
9) Valmy Antler Project (2,080 acres or 3.2 sq miles). Nevada
Pacific controls 100%. Company note: "The Valmy Antler land
package abuts the Glamis' Marigold Mine position on the east and
north boundaries and covers both NE and N-S mineralized trends
extending from known ore bodies. The project lies within Newmont
checker boarded private lands and also abuts Newmont's active
lode mining claims that have been held since 1986." It is
near the northern border of the Cortez Trend.
Active mines in Cortez: None. There was a historical
mine, called the Keystone mine on the Keystone property which
was active in 1940's and 1960's. "The mine produced 114 tons
of ore yielding 19,800 pounds, 17,900 pounds of zinc, 1,400 pounds
of copper and 417 ounces of silver."
Amount of proven reserves in Cortez. None. Drilling
results may be available by late 2005. Placer Dome sets the schedule
for Keystone and BMX, since they are the lead joint venture partner.
Under their JV agreement, Placer Dome is required to spend a certain
amount a year.
Exposure to Cortez: The Cortez area comprises
38 sq miles out of 75 total square miles in Nevada, or 50% exposure.
Nevada Pacific thinks the sites outside of the Cortez Trend in
Nevada are equally prospective with those inside the trend. The
company believes that the 250 sq miles in Mexico are under-explored,
and they are not necessarily comparable to the Nevada properties
because they involve different geological formations.
Total gold reserves in company. 465,000 oz proven
and probably reserves, included in 616,000 ounces for total reserve
and resource ounces at the Magistral property in Mexico. In the
Cortez Trend area, everything is still in the exploration phase.
Total production 23,000 ounces at Magistral mine
in Mexico in 2003 under Queenstake management, before Nevada Pacific
bought the mine from Queenstake in Feb 2004.
Total Company revenues: None. The Magistral mine
was declared pre-commercial for 2004 based on the capital expenditures
required to improve operations at Magistral. The mine is expected
to be declared commercial effective Jan 2005.
Fully diluted shares: 64 million.
Working capital: $5.5 million.
Outside ownership/largest shareholders. Institutions:
15%, Management 5%. Sept 9, 2004 press release stated that Placer
Dome acquired 1.3 million shares in private placement for US$1
Management/Strategy: According to "Nevada
Pacific Hunts for Motherlode" (4-10 June 2004 Northern
Miner), " Nevada Pacific's team was previously involved in
the growth phase of two mid-tier producers, Bema Gold (BGO-T)
and Eldorado Gold (ELD-T). Along with [CEO] Richard Barclay, [Chairman
David] Hottmann and senior management of Nevada Pacific have been
involved in the discovery of 75 million oz gold, 10 operating
mines, and the raising of about $700 [actually $300] million in
Canaccord Capital issued a Speculative Buy in its
Nov 22, 2004 Daily Letter. On Dec 4, 2004 at the San Francisco
Gold Show, John Doody, author of the
Gold Stock Analyst, told interviewer James
Puplava that he had just added Nevada Pacific to his recommendation
In his Puplava interview, John Doody discussed how
Nevada Pacific's Mexican property could have some exploration
upside (a 400 sq kilometer property with a gold porphyry target)
in addition to producing 30,000 ounces a year. John Doody stated,
"The exciting exploration to me is that they have eleven
properties in Nevada, oddly enough. In three of these properties
Placer Dome is spending a total of 13 million dollars over five
years exploring to earn a 60% interest. Placer has got some great
technical expertise, they know their way around Nevada, they know
what they are doing there, and the fact that Placer is willing
to bet 13 million bucks on these properties to earn in a 60% interest
is very exciting for me, and I am sure if only one out of three
hits, it will be a good upside for the stock. Plus, they have
eight other good properties that they are exploring on their own,
one of which Newmont did ten years ago, drilling and found 600,000
ounces, so they are going to do more drilling to hopefully find
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
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
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)..."
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
TSX-V symbol WKR
Size of Cortez land position: 83.2
1) Benmark (100% by owned by White Knight) 1.7
2) Cabin Creek (100% owned) 0.9 sq. miles
3) Celt (100% owned) 12.4 sq. miles. "Teck
Cominco (`TCAI') has an option to earn a 51% interest
by spending US$4 million and paying US $750,000..."
4) Cottonwood (100% owned) 1.9 sq. miles
5) Fye Canyon (100% owned) 10.8 sq. miles. "Teck
Cominco American Incorporated has an option to earn a 51% interest"
by spending US $4 million and paying US$750,000 by 2008. TCAI
may earn an additional 9% interest by completing a feasibility
6) Goldstone (100% owned) 1.3 sq. miles
7) Gold Bar Horst (100% owned) 4.5 sq. miles
8) Gold Pick (100% owned) 0.4 sq. miles
9) Hunter (100% owned) 1.5 sq. miles
10) Indian Ranch (75% owned) 17 sq. miles. "Placer
Dome U.S. Inc. has the right to earn a 60% interest
for US $2 million in expenditures over 4 years and may earn an
additional 15% by financing a feasibility study." WKR announced
2004 that drilling had commenced here.
11) McClusky Pass (100% owned) 7.6 sq. miles
12) Pat Canyon (100% owned) 4.1 sq. miles
13) Slaven Canyon (100% owned) 9.7 sq. miles.
In April White Knight hopes to start drilling a total of 15,000
feet in 7
to 8 drill holes. Each hole may take two weeks apiece. Although
Slaven Canyon is 5 to 10 km to the west of Klondex's Fire Creek
Mine, White Knight believes that it may reach a different, older
formation closer to or on the Cortez Fault system.
14) Squaw Creek (100% owned) 4.7 sq. miles. "Consolidated
Odyssey Exploration Inc. ("ODE") has an option to earn
a 50% interest by spending US $2 million, issuing
500,000 shares and paying US$500,000 over a 4-year period."
15) Tonkin Summit (100% owned) 4.6 sq. miles