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Case
Study: Virginia Gold Mines
The graph below for Virginia
Gold Mines shows what a win it’s been for HRA readers.
We’ve added some earlier
comments on Virginia to show how it was followed as events developed. It’ s been
successful in the long term for Journal readers and an even more explosive short
term win for Special Delivery and Dispatch subscribers.
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Virginia was originally reviewed in the
Journal in 1999 at $0.65 (a rare “bear market” addition) thanks
to its broad range of projects and management with excellent exploration,
funding and deal making skills. VIA went from accumulate to hold as the
price moved to $2.00 on base metal discoveries then eased back in price but
the best was yet to come.
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Special Delivery #202
August 2004.
Virginia releases the first set of trenching results from the Eleonore
project and we declare “The trenching results already have the feel of a
starter pit to them” - moved back to spec buy at $1.15
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Special Delivery
#205 –September 2004.
VIA releases the first drill results from Eleonore. On viewing those
results we said “VIA closed at a multi –month high and the 52 week high of
$1.90 won’t be far behind if they keep releasing results like these….VIA
management had spent years looking for just this type of situation. Most of
you should have a good gain on this one already but there is definitely a
lot more upside in this stock.”
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Special Delivery
#207—October 2004.
Trading at $2.05, VIA releases its second set of drill holes. We maintain
the Spec Buy rating with the comment that “continued results like this will
confirm what we already suspect—that this is one of the best finds in the
Canadian Shield in a long time”.
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Special Delivery
#208 - November 2004
VIA releases another large set of drill results, expanding the “Roberto”
zone and including a number of intersections of the new, parallel “Roberto
Est” zone. HRA states that VIA, trading at $2.27 “has reached a tipping
point that can draw in new spec buying and drive to stock to higher levels
on volume” as the rating is raised to Strong Spec Buy again.
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Special Delivery
#213—December 2004
Now trading at the $3.50 level, another large set of drill results expands
the Roberto zones yet again. HRA presciently declares “Virginia’s all-time
high is $4.10 reached in the heady market of 1996. We think that with the
results in hand, Virginia is positioned to exceed that high”.
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Special Delivery #225—February 2005
Virginia traded sideways for two and a half months and was trading at $3.88
when it released a large set of new drill holes. HRA rushed out an alert
telling readers we considered the results highly significant. We
ended that alert with the statement “...in short, these holes have opened up
the expansion potential of Eleonore in all directions. We continue to view
Roberto as one of the best finds this cycle and maintain the Spec Buy
rating”. The stock never looked back.
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HRA releases a large update in Special Delivery #234 in May after
David visits the project. We re-iterate that we consider it the find of the
cycle in Canada and congratulate the management and staff of Virginia for
not only making the find but also advancing it so quickly.
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Special Delivery #237
—June 2005 We release another alert with VIA trading at $6.20 as the
deepest drill holes yet return spectacular grades and trenching discovers
new areas of gold mineralization. We state in the alert that “this release
expands the “envelope of potential” at Eleonore through the 5 million ounce
level” and that “VIA is technically a 10-bagger from our earliest call some
years back but we are now looking at it as a potential 10-bagger from our
early call on Eleonore last summer (at $1.15)”
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Special Delivery #251
we continue to follow VIA closely, pointing out buy points during periods of
weakness. It’s still a Spec Buy on our list in November when we state “we
expect VIA will ultimately be taken over for a considerably higher price
than the one prevailing today.”
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Special Delivery #254
we released a Special Delivery on December 5 2005 after Virginia, as we had
predicted for over a year, was the subject of a friendly takeover offer by
Goldcorp (G-T, GG-N). After reviewing the bid we recommended VIA
shareholders hold their shares (or acquire some) through the meeting and
approval process so they could hold shares in “New Virginia” which would
hold all the non Eleonore assets of Virginia.
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“New Virginia” (Virginia Mines Inc, VGQ-T) begins trading after takeover
closes.
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March 29, 2006 –
Virginia shareholders overwhelmingly approve the Goldcorp transaction. VIA
shareholders will received Goldcorp stock worth about $15.50 per share plus
a half share of New Virginia. At the time of writing, VGQ is trading at
$6.00, or $3.00 per original VIA share. This represents an overall gain
of almost 3000% from the original Journal addition and 1650% (in 20 months)
from Special Delivery Alert #202!
Shouldn't you be getting these types of gains?

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