Visionary Gold Corp

Visionary Gold Corp, (TSXV: VIZ), formerly Galileo Exploration Ltd is a gold-focused, mineral exploration company based in Vancouver, Canada, which has operations in Lander, WY, through its wholly-owned US subsidiary, Lost Creek Corporation. The company is currently focused on the Wolf Gold Project.

Key highlights 

• Wolf Gold Project: The Company is energetic by the results that have highlighted a clear initial target for drilling, as the Wolf Shear Zone is showing high-grade potential at the surface, which coincides with a geophysical anomaly at depth. Initial exploration results revealed rock chip samples of a fault gouge within the Wolf Shear Zone measuring 19.87 g/t gold and 20.63 g/t gold. Likewise, rock chip channel samples from the alteration envelope within the Wolf Shear Zone ranged from 2.63 g/t gold to 15.46 g/t gold.

• Drilling at the Wolf Mine in 2021: The company would test the IP target below the historic Wolf Mine to characterise the alteration, determine the extent of oxide gold mineralisation and the possible extension of mineralisation into the underlying sulphides. Drilling would also help the company to gain a better understanding of the structural controls of mineralisation, which would be important as exploration efforts expand regionally.

• Strengthens Board of Directors and Management Team: Recently, the Company announced that Wes Adams will become its new Chief Executive Officer, succeeding John Kanderka, who will remain with the Company in a new role as Chairman of the Board of Directors. The group also appointed Robert Doyle as the Company's CFO and William Van Horne as Corporate Secretary.

• Improved Liquidity: The Company had improved its working capital to CAD 535,119 on September 30, 2020, against a deficiency of CAD 609,372 on June 30, 2020. Cash position also increased to CAD 730,387 against CAD 18,536 on June 30, 2020. The increase in cash by CAD 711,851 is primarily due to net proceeds from financing activities.

Financial overview of Q1 2020

Source: Company

• In Q1 2020, the Company reported a petroleum revenue of CAD2,536 against CAD 7,232 in the previous corresponding period.
• The Company's operating expenses in the reported quarter increased many folds to CAD 134,421 against CAD 21,640 in the pcp. The G&A expenses stood at CAD 101,178 compared to CAD 16,674. The increase was mainly due to professional fees. The Company worked with legal counsel and other consultants to settle its debt, complete a private placement, search different projects, and enter a mining lease agreement in Wyoming, USA.
• The Company reported a net loss of CAD 127,263 in the quarter, against a net loss of CAD 16,813 in the previous corresponding period.

Risks associated with investment

The company has a limited history as an exploration company and does not have any experience in putting a mining project into production. Further, any unfavourable result from the drilling programme would hamper the business prospects.

Stock recommendation

Presently, the Company is in the primary stage of the mining where they analyse the soil study data to precisely determine the gold reserves present in the soil and under the earth. The company would be starting drilling in 2021 at Wolf Mine to characterise the alteration, determine the extent of oxide gold mineralisation and the possible extension of mineralisation into the underlying sulphides. We believe that this drilling would also help the company to better understand the structural controls of mineralisation, which would be important as exploration efforts expand regionally. The company has not shared any information that when they would be starting its full-fledged mining operations. Also, the company has a limited history as an exploration company and does not have any experience in putting a mining project into production. Further, any unfavourable result from the drilling programme would hamper the business prospects. Hence, given the above facts, we prefer to remain on the side-line and recommend investors to “Avoid” the stock at the closing price of CAD 0.19 on February 3, 2021.

Source: Refinitiv (Thomson Reuters)

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