Following operations ramp up throughout 2020, Victoria Gold (TSXV: GCX) increased its production from the Eagle mine to 26,759 ounces during the first quarter of 2021, more than double the 10,544 ounces produced in Q1 2020.
In the three-month period, the Eagle mine produced a total of 1.6 million tonnes of ore from 6.2 million tonnes of mined materials. Total tonnes mined were 248% higher in Q1 2021 as the company advanced phase 2 waste stripping within the open pit.
Ore stacked on the heap leach pad amounted to 1.0 million tonnes at an average grade of 0.87 g/t, which was similar to the prior comparable period in 2020.
Increased gold production at Eagle allowed Victoria to boost its sales to 27,538 ounces for the quarter, resulting in a net income of C$31.8 million, compared to a net loss of $47.4 million in the same quarter last year.
Management believes the company is on track to meet its production and financial guidance for 2021, assuming there is no significant impact on operations due to the covid-19 pandemic.
Production guidance of 180,000-200,000 ounces remains unchanged, as gold production is expected to be strongly weighted to the second half of the year due to the seasonal stacking of ore on the Eagle leach pad.
The company has also initiated ‘Project 250’ – aimed at increasing the average annual production of the Eagle gold mine to 250,000 ounces by 2023.
Shares of Victoria Gold surged 6.5% by 12:30 p.m. in Toronto following the Q1 results release. The Yukon-focused gold producer has a market capitalization of C$965.1 million.