Victoria Gold outlines $508m Yukon mine

Eagle Mine. Image by Victoria Gold Corp.

Toronto-HQed Victoria Gold Corp. (TSX-V: VIT) on Monday announced the results of a National Instrument 43-101 feasibility study for its 100% owned Eagle Gold Project located on the Dublin Gulch property, in the Yukon territory of Canada.

Victoria Gold says the fully-permitted Eagle Gold project confirms the technical and financial viability of constructing and operating a 33,700 tonne per day  mine encompassing two open pits, a three-stage crushing circuit, two in-valley leach pads and an adsorption desorption gold recovery plant:

  • Annual Gold Production of Approximately 200,000 ozs
  • Proven and Probable Reserves (gold oz) =1,880,000
  • Operating Cost of US$539/oz & All-in Sustaining Cost of US$638/oz
  • Post tax Net Present Value @ (5%) = C$508 million
  • Post tax Internal Rate of Return = 29.5%
  • Gold price = US$1,250/oz & Exchange Rate = 0.78 C$/US$
  • Initial capital expenditure = US$289
  • 1 year of construction followed by 10 years of mine operations

“The results from this Feasibility Study highlight the exceptional quality of the Eagle Gold Project.” stated John McConnell, President & CEO. “Our team, working with an experienced group of consultants have optimized several key areas of the project, in particular, the heap design and incorporation of run of mine leaching of low grade material.

These improvements have resulted in significant capital savings and enhanced overall project economics. Eagle is a fully permitted project in a premier jurisdiction that can produce 200,000 ounces annually with high margins and a very attractive valuation. We also believe the current and future Olive-Shamrock drilling will continue to add to this valuation.”