Yukon Gold project now in full construction mode
The process of developing an economic mine is sometimes equated to a frantic army of baby turtles scurrying across the beach to the ocean. Most of them are picked off by seagulls. Only 1% of junior explorers will morph into a producing mine.
A career fair at Yukon College in Whitehorse has attracted job-seekers to fill positions at Victoria Gold Corp.'s (VIT:TSX.V) Eagle Gold Mine project north of Mayo, Yukon.
The Eagle Gold Project in Yukon Canada hosts an NI 43-101 reserve of 2.7 million ounces of gold (123Mt @ 0.67 g/t). The project is fully permitted for production. Construction is underway. According to the company, Eagle Gold is expected to produce about 200,000 ounces of gold per year for 10 years at a cost of $550 per ounce.
As construction begins, Victoria Gold continues an aggressive drill program, expanding the potential resource beyond the scope of the registered mine plan.
October 17, 2017, drill results include 1.9m @ 14.65g/t Au at the Catto Zone and:
- 24.4 m of 1.64 g/t Au in drill hole DG17-867C from 33.5 to 57.9 m
- 21.4 m of 0.99 g/t Au in drill hole DG17-892C from 138 to 155 m
- 7.4 m of 1.19 g/t Au in drill hole DG17-888C from 119.6 to 127.0 m
- 1.4 m of 4.51 g/t Au in drill hole DG17-873C from 160.0 to 161.4 m
According to the press release, "these latest results are from the 11 exploration drill holes completed on the Catto Zone. Located between the Eagle Gold Mine and the Olive-Shamrock Deposit, the Catto Zone was the location of historic high-grade gold mines and has seen only cursory contemporary mineral exploration."
Other recent results include 146m @ 0.67 g/t Au; including 14m @ 4.87 g/t Au trench results at newly discovered Bluto Target, Dublin Gulch, Yukon.
"Bluto has been a high-priority target on the Potato Hills Trend for many years," stated Victoria CEO John McConnell. "The fact that a high-grade gold vein was discovered early in this campaign demonstrates that our Potato Hills Trend mineralization model is working."
On October 30, 2017, PI Financial published a corporate update on Victoria Gold.
PI Financial commented on the remaining two drill results of Victoria Gold's four-hole drill program targeting areas below the existing pit.
"Results verify the continuity of mineralization at depth and have increased the strike length of the Eagle Deep target by an additional 400m as compared to the previous two holes," stated PI Financial analyst Gary Sidhu in the report. "The resulting grades are well above the Eagle Deposit resource cut-off of 0.15 g/t Au and allow for the potential of relatively simple mine life additions in the future."
Sidhu stated that "Victoria controls what we consider to be a strategic asset: a sizeable gold development project (~200koz/y), which can be developed for a reasonable initial capital expenditure (~C$400m), located in a top-tier political jurisdiction (Yukon), with full permits for construction in hand (received December 2015). We expect Victoria will garner interest from a variety of gold producers as an M&A target."
PI Financial gives Victoria Gold a Buy rating and price target of CA$1.10—about double the current share price.
Victoria Gold is one baby turtle that made it all the way.
1) Lukas Kane compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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Additional disclosures about the sources cited in this article
Disclosures from PI Financial, Victoria Gold Corp., Corporate Update, Oct. 30, 2017
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Source: Streetwise Reports (11/7/17)