DJ:
I spoke with Chad Williams this week, I will try to give you a point by point recap BUT I too am a lousy stenographer:):)
-Chad was approached by Kinross to look at what to do with Vit. the Result? he left a profitable position as a gold analyst,took a pay cut and put 1 mil of his own money to join Vit.
-He viewed the back in right as a problem but now sees it as an asset. Gets along very well with Newmont, they have a mill too.
-Permitting simpler if they go into production using the Newmont mill
-Feels Mill Canyon is enough to support the current market cap.
-is aware the website is sub standard, wants to improve news flow.
-won't release partial assays, one good reason is the gold is at depth so if you release the top of the hole you are doing a disservice.
- Holes 8,9,10,11
- 8 is done as the depth they achieved was equal to the rig's capacity.
9. they stopped the hole 1/2 way for a while because they were concerned about deviation, they have confirmed it is on target but I am not sure how deep they have gotten now.
-10 lall went well, can't tell from my notes where it is now, finished I think.
-11 They dismissed that drill contractor and I don't think it is completed.
- the type of mineralization does not display visible gold.
- I got the distinct impression we won't see assays right away, maybe an update first.
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They are doing engineering study on the Drift idea, drill holes would be about 20% the cost of current holes. The design would take in capacity needs for future production and they would be able to extract some gold in the process that would offset the cost.
- no talk of feasibility studies yet.
- Summit has not received the necessary permits for drilling
it is a forest reserve area and they must do studies for a wildflower that has not bloomed yet. This is not a pristine wilderness reserve situation ,obviously, as the land has already seen some mining but it adds a layer of regulation.
- should be some more work on Hilltop and Mill Canyon in the near future.
I was impressed by Chad's straightforward manner and think Vit is in good hands. I am not pleased at the continuing drilling difficulties and the future timetable which will remain slow
(IMO )for months, whether they continue to deep drill or go ahead and cut a drift nothing will happen fast.
My conclusion is VIT. remains an excellent call position on gold in Nevada but I sold my shares as I feel I can return to Vit as the upside for the next several months will be limited to the next round of assays.
Cheers,
Ogi |
