Couldn't see a thread for vgm following the transition from rvd and now producing gold at Vatukoula in Fiji. Looking to ramp up to a rate of 110,000 oz per annum by mid 2009 with current rate of production probably a little over 60,000 oz per annum.

Making good progress towards their targets.

It sounds as if the're being prudent/conservative so as not to build up to higher expectations ?

SP holding up well..

I guess when we start seeing real output/revenues increasing we'll see good RNSs and SP higher (imho)

Isn't is refreshing to see an AIM listed company being "conservative"?! RNS confirms the quality of the mine.

back in blue kim.. some big buys going in now .i would like to see this at 2.04p end of today.

I'd like to see it at 2.04! :o)

confirms what we no kim but a nice read picked up on BB

This is what Arbuthnot are saying to their institutional clients

Resource and reserve update
Vatukoula Gold Mines (VGM) have released its first independently calculated JORC resource and reserve estimate since re-admission which continues to demonstrate the company is in possession of a world class, high grade gold deposit. The updated estimate confirms the multi-million ounce magnitude of the resource, stating measured, indicated and inferred resources of 4.3Moz at 7.3g/t. This estimate includes reserves of 0.68Moz at 10.9 grams per tonne at a very conservative gold price of 750/oz, assuming operating costs that we estimate are equivalent to the current cash costs of c.$650/oz. The reserves therefore support at least a 5+ year mine life with good potential for further extensions provided the vast resource base continues to be converted into reserves.

Scale underappreciated by the market
While these updated estimates are a reduction to the 2006 estimates included in the re-admission document (reflecting the removal of less accurate face sampling data, cutting out high grade intersects and mine depletion), the difference is not really significant as neither estimate are reflected in the company's current share price. The company's reserves and resources currently trade at a large discount to the company's peers. On an EV/Resource basis, VGM trades at c.$23/oz - a 75% discount to peers and only marginally above the discovery cost of many companies. At the current valuation, the company's resources therefore would make an attractive acquisition for any company looking to add resources at near the cost of exploration without much of the exploration risk. On an EV/reserve basis, the company trades at $144/oz, a near 50% discount to its peers. We expect this discount should be eliminated as the company achieves its fully funded production ramp up of 60koz in 2010 and 100koz in 2011 as investors' confidence in the company's ability to produce profitable ounces improves.

Execution is the key
With this update confirming the size and quality of the high grade resource, we expect that company will continue to perform well provided production targets are achieved. This will unlock the mine's profitability and potentially even bring the company into the crosshairs of larger producers struggling to find or replace ounces.

Yes, nice one micky.

over 16 buys today over the 1,000,000.m mark in 4 hr not bad ;-))

so close to 2p....just one more push should do it...lol

Heave!

I'm glad it was you who replied kim and not cynic....lol

:o)

broken well through the 2p barrier today..:))

Can it sustain it? There is no reason to think not at present.

Apart from profit taking of course, which might be a bit premature!

morning kim L2 showing 2.2 to buy ;-))


Vatukoula draws attention

By Neil Hume and Bryce Elder

Published: January 14 2010 02:00 | Last updated: January 14 2010 02:00

Vatukoula Gold Mines was among the most heavily traded small cap shares yesterday as investors digested an independent assessment of the reserves at its gold mine in Fiji.

The company claimed that the resource estimate - the first since the company was readmitted to Aim in March 2008 - showed the company was in possession of a world-class, high-grade gold deposit.

In response, Religare Hichens Harrison increased its target price to 2.7p while Arbuthnot Securities said the company could now be a takeover target.

"At the current valuation, the company's resources make it an attractive acquisition for someone looking to add resources at near the cost of exploration without much of the exploration risk," it said.

Vatukoula rose 7.6 per cent to 1.98p after 142m shares changed hands.

I hope it doesn't get taken over before we reach 10p micky!

here here, any idea who would be in the running to take over?

they would have to put a 15p buy to get it i think ;-)

The Chinese like gold!

2.15p up it goes.