Canadian Gold Explorer Expected to Garner Interest as 'M&A Target'

Victoria Gold Corp. (VIT:TSX.V) announced multiple results from its 100%-owned Dublin Gulch gold property in the Yukon with back to back news releases on Sept. 18 and Sept. 19.

In the Sept. 19 press release, Victoria Gold announced the first assays received from the "2017 Bluto target surface trench exploration program. TR17-16 was the first major trench constructed at the Bluto target this season and was concentrated on a trail built with heavy equipment to access a water source that would be utilized in the planned 2017 Bluto diamond drilling exploration program."

"The fact that a high-grade gold vein was discovered early in this campaign demonstrates that our Potato Hills Trend mineralization model is working and we look forward to the first ever drill results from this highly prospective area," noted John McConnell, president and CEO of Victoria Gold.

Following the press release, Chris Thompson, an analyst with Raymond James, reported on Sept. 19 that "VIT's continued exploration success demonstrates potential upside for Eagle, providing possible satellite deposits which could extend the planned mine life beyond the current 10 years." He pointed out that "recent drilling and trenching along the Potato Hills trend have identified several new targets including Spinach (~500 m north of Olive-Shamrock), Popeye (~1 km west of Olive-Shamrock), and Bluto (6 km east of Eagle)."

He explained that he is maintaining a Buy rating and that the $1.00 target price "is derived by applying a 1.0x multiple to our fully funded NAV. We feel our target is justified given Eagle's safe jurisdiction and fully permitted status."

Raymond James has an Outperform rating on Victoria Gold and a target price of $1.00 per share. The company's shares are currently trading at $0.48.

Echelon Wealth Partners analyst Ryan Walker stated in a Sept. 19 report that "Victoria Gold reported a trench assay from the new Bluto Target, along the Potato Hills Trend model that the Company is using successfully to guide exploration at its 100% owned Dublin Gulch project in the Yukon." He pointed out that Victoria Gold is currently testing another 22 trenches with assay results pending on 10 of the holes.

Walker highlighted that "results nearer to Eagle in the Olive-Shamrock area are demonstrating the potential for relatively quick mine-life additions, while strong results from Spinach and Bluto confirm the substantial exploration potential remaining along the 18km-long Potato Hills Trend at Dublin Gulch, something we highlighted in our original investment thesis."

"Our positive bias towards VIT shares reflects the project's strategically large resource, fully permitted and shovel ready status, district-scale land package with substantial exploration potential near excellent infrastructure, and situation in Canada," Walker concluded.

Echelon maintains a Speculative Buy rating om Victoria Gold with a target price of $0.90 per share.

Victoria Gold's Sept. 18 press release detailed the results of the "the first eleven (11) exploration drill holes at the Spinach target, a previously untested area north of the Olive-Shamrock Deposit." The announcement highlights the details of the drill results and notes that "2017 exploration at the Spinach target included soils geochemistry surveys, geologic mapping, trenches and diamond drilling focused on assessing the gold mineralization potential of the northern contact margin of the Dublin Gulch intrusive stock."

In a Sept. 18 report, Echelon Wealth Partners analyst Ryan Walker stated that "drilling at Spinach tested an area of approximately 400m by 400m. For comparison, the Eagle Gold deposit, which is now under construction, contains Proven and Probable reserves of 2.7 Moz Au grading 0.67g/t Au, part of a wider resource containing 4.0 Moz Au grading 0.65g/t Au in Measured and Indicated resources, and a further 0.5 Moz Au grading 0.61 g/t Au in Inferred resources."

Gary Sidhu, an analyst with PI Financial, stated in a Sept. 18 report that "drilling at the Spinach zone this year totaled 6,265 metres (22 holes) targeting a coincident gold/arsenic soil geochemical anomaly." He highlighted that "mineralization intersected here is distinct from both the Olive-Shamrock deposit and Eagle deposit however, [and] continues along the same Potato Hills Mineralization trend."

Sidhu noted that the distinct mineralization discovered is a good sign for future exploration and "results indicate exploration methods (mapping, soil geochemistry, and trenching) have been successful in identifying mineralized zones."

"Victoria controls what we consider to be a strategic asset: a sizeable gold development project (~200koz/y), which can be developed for a reasonable initial capital expenditure . . .we expect Victoria will garner interest from a variety of gold producers as an M&A target."

PI Financial maintains a Buy rating and a target price of $1.10 per share on Victoria Gold.

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Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures from Raymond James, Victoria Gold Corp., Sept. 19, 2017

ANALYST INFORMATION: Analyst Compensation: Equity research analysts and associates at Raymond James are compensated on a salary and bonus system. Several factors enter into the compensation determination for an analyst, including i) research quality and overall productivity, including success in rating stocks on an absolute basis and relative to the local exchange composite Index and/or a sector index, ii) recognition from institutional investors, iii) support effectiveness to the institutional and retail sales forces and traders, iv) commissions generated in stocks under coverage that are attributable to the analyst’s efforts, v) net revenues of the overall Equity Capital Markets Group, and vi) compensation levels for analysts at competing investment dealers.

The views expressed in this report accurately reflect the personal views of the analyst(s) covering the subject securities. No part of said person's compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. In addition, said analyst has not received compensation from any subject company in the last 12 months.

Victoria Gold Corporation: Raymond James Ltd. has provided non-securities-related services within the last 12 months with respect to VIT.

Raymond James Ltd. has received compensation for investment banking services within the last 12 months with respect to VIT.

Raymond James Ltd. or an affiliate received non-securities related compensation from VIT within the past 12 months.

Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available for Raymond James at rjcapitalmarkets.com/Disclosures/index and for Raymond James Limited at www.raymondjames.ca/researchdisclosures.

Disclosures from Echelon Wealth Partners, Victoria Gold Corp., Sept. 18, 2017, and Sept. 19, 2017

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

I, Ryan Walker, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.

Important Disclosures:
During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? No

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No

Has the Analyst had an onsite visit with the Issuer within the last 12 months? No

Disclosures from PI Financial, Victoria Gold, Corporate Update, Sept. 18, 2017

I, Gary Sidhu, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this report. I am the research analyst primarily responsible for preparing this report.

Research Disclosures:
1) PI Financial Corp. and its affiliates’ holdings in the subject company’s securities, in aggregate exceeds 1% of each company’s issued and outstanding securities. No

2) The analyst(s) responsible for the report or recommendation on the subject company, a member of the research analyst’s household, and associate of the research analyst, or any individual directly involved in the preparation of this report, have a financial interest in, or exercises investment discretion or control over, securities issued by the following companies. No

3) PI Financial Corp. and/or its affiliates have received compensation for investment banking services for the subject company over the preceding 12-month period. No

4) PI Financial Corp. and/or its affiliates expect to receive or intend to seek compensation for investment banking services from the subject company. Yes

5) PI Financial Corp. and/or its affiliates have managed or co-managed a public offering of securities for the subject company in the past 12 months. No

6) The following director(s), officer(s) or employee(s) of PI Financial Corp. is a director of the subject company in which PI provides research coverage. No

7) A member of the research analyst’s household serves as an officer, director or advisory board member of the subject company. No

8) PI Financial Corp. and/or its affiliates make a market in the securities of the subject company. No

9) Company has partially funded previous analyst visits to its projects. Yes

10) Additional disclosure: No