Research Update
February 24, 2011
Ergebnis Kurzfassung:
Equivalent in-situ metal content (12 Months)
Equiv. Au (Oz)
TOTAL 2,241,239
In Situ Valuation
All four of LEX’s properties have a significant amount of compliant NI 43-101 resources
that are evenly split between the Indicated and Inferred categories. We have applied a
15% in situ value to Indicated and a 10% in situ value to the Inferred resource. Based
on the high grades, geology and proximity to highly successful past mines in the
neighbourhood, we are fairly confident in our assumption of “in situ” value of $202 and
$130 per ounce of gold for Indicated and Inferred categories, respectively.
In-situ Value per Sh. $1.65
Peer Comparable Valuation
In the Peer Comparison analysis above, we calculated the average multiple that the
market offers to these comparable companies (Market Cap/Ounce of gold) to Lexam
VG Gold. The peer average Market Cap per oz is $339.93, which gives an estimated
current fair value for VG Gold of $2.09 per share
The average of both these methodologies provides us with a fair value of
$1.87 per share for VG Gold in the next 12-months.
February 24, 2011
Ergebnis Kurzfassung:
Equivalent in-situ metal content (12 Months)
Equiv. Au (Oz)
TOTAL 2,241,239
In Situ Valuation
All four of LEX’s properties have a significant amount of compliant NI 43-101 resources
that are evenly split between the Indicated and Inferred categories. We have applied a
15% in situ value to Indicated and a 10% in situ value to the Inferred resource. Based
on the high grades, geology and proximity to highly successful past mines in the
neighbourhood, we are fairly confident in our assumption of “in situ” value of $202 and
$130 per ounce of gold for Indicated and Inferred categories, respectively.
In-situ Value per Sh. $1.65
Peer Comparable Valuation
In the Peer Comparison analysis above, we calculated the average multiple that the
market offers to these comparable companies (Market Cap/Ounce of gold) to Lexam
VG Gold. The peer average Market Cap per oz is $339.93, which gives an estimated
current fair value for VG Gold of $2.09 per share
The average of both these methodologies provides us with a fair value of
$1.87 per share for VG Gold in the next 12-months.


