LEX: Location, Location, Location

Vikas Ranjan The Gold Report Interview with Vikas Ranjan (02/28/2011)

"We started coverage on VG Gold back in July 2008 when it had a $20 million market cap. Once the merger with Lexam Explorations was concluded, the new company emerged as Lexam VG Gold, and now the market cap is close to $225 million. More and more investors are warming to the idea that Lexam VG Gold is moving in the right direction. Mr. Rob McEwen, who is the former chairman and CEO of Goldcorp and probably one of the best gold mining investors on the planet, owns close to 30% of the company. He is also the non-executive chairman. By making that investment and being on the board, he's basically saying that this is one of the most-promising companies in the Timmins Gold Camp.

The merger allows Lexam VG Gold access to more than $15M of Lexam's capital. This will really change the game for Lexam VG. Now, it can significantly expedite its exploration program. This company could become a company of choice for many people to get exposure to the Timmins gold exploration play. . .VG already has gold resources of roughly 1.5 Moz. Lexam VG has four properties that it's going to drill vigorously this year; it'll add a lot of value at these gold prices. VG is getting about $140/oz. in the market in terms of market cap. . .There's still a big valuation gap in terms of VG going to the next stage. I think this company's market cap has the potential to go to $1 billion in a couple of years if it successfully executes its exploration strategy and expands its gold resource base. . .Yes. The potential is there, considering the vast support it has and all the exploration potential of its four properties—all of which are close to past- or currently producing mines. You couldn't ask for a better address than Timmins."

View Entire Article: Vikas Ranjan's Solid Gold Picks

For more independent commentary, click here: Lexam VG Gold Inc.

Related Articles: