Junior
Situated in the Battle Mountain trend, Mill Canyon is considered prospective for disseminated carbonate gold deposits. Two known zones of skarn mineralization are said to host a combined 315,000 tons of inferred resources averaging 0.32 oz. per ton.
Victoria also notes the property’s proximity and geological similarities to the adjacent Cortez and Horse Canyon deposits and the nearby Pipeline deposit. The deposits are part of the so-called Cortez joint venture in which
Victoria paid US$75,000 and issued 200,000 treasury shares upon concluding the deal and is required to pay US$225,000 and issue 300,000 more shares over the next two years. It also must spend US$2 million on exploration over five years.
Newmont retains a 3.5% net smelter return royalty (NSR) and a back-in-right for a half-interest. Should it choose the joint-venture route, it must repay 250% of the junior’s total expenditures and relinquish its royalty.
Geological mapping and geochemical sampling are under way.
On May 30, Victoria and Newmont were to have inked final agreements regarding the Hilltop-Slaven and Pinson-Preble properties. The former is 19 miles northwest of Mill Canyon, also in the Battle Mountain trend; the latter is a further 28 miles to the northwest, in the Getchell trend.
According to the letter of intent, Victoria must spend US$5 million on each property over seven years, and Newmont retains 3.5% NSRs and back-in-rights for 51%, subject to the repayment of 250% of Victoria’s expenditures on each property and the relinquishment of the royalties.
The Pinson-Preble agreement also requires Victoria to halve its land position after the fifth anniversary. The other half reverts back to Newmont.
In related news, Victoria has raised $1.2 million via a brokered private placement. The placement entailed 12 million units, with a unit consisting of a share and a warrant that expires in one year and can be exercised at 20.
Victoria is 30%-owned and managed by
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