Toronto-based Victoria Gold (TSXV: GCX) has joined the ranks of Canadian gold producers by declaring commercial production at its Eagle gold mine in the Yukon territory on Wednesday.
The Eagle gold mine is part of Victoria Gold’s Dublin Gulch property, located approximately 375 kms north of Whitehorse. The Eagle and Olive deposits combined have estimated proven and probable reserves of 123 million tonnes grading 0.67 g/t gold for 2.7 million oz.
The Eagle mine alone is expected to produce 210,000 oz gold annually at an all-in sustaining cost of $750/oz, making it the largest gold mine in Yukon history.
All facilities required at this stage of the mine life are now complete, the company says, with mining, crushing, processing and maintenance operations all performing at a high level.
The company’s first reporting period under commercial production will be the third quarter ended September 30, 2020. The mine poured its first gold last September.
“Site activities continue to progress well and all facilities and operations are now at or approaching design capacity,” president and CEO John McConnell said in a press release.
“This consistent production combined with materially positive operating cash flow has allowed Victoria management to declare commercial production as of July 1, 2020.”
Shares of Victoria Gold traded 6.9% higher at Tuesday’s close, after reaching a nine-year high earlier in the session. The company has a market capitalization of approximately C$871 million.