Newly minted producer Victoria Gold (TSX: VGCX) has released guidance for its first full year of commercial production – the Eagle gold mine in central Yukon achieved commercial production on July 1.
In 2021, Eagle is expected to generate 180,000 to 210,000 gold oz. at all-in sustaining costs between $1,050 and $1,175 per oz. In the second half of last year, the open pit heap leach operation produced 77,748 oz. of gold.
In a release, president and CEO John McConnell noted that Victoria has recently completed upgrades of the crushing and stacking circuits at Eagle to streamline material handling.
“Since January 2021, and coincident with the seasonal no stacking period, we have completed a significant maintenance and upgrade program within the Eagle crushing circuit and mobile stacking system which will improve material handling. With this work complete, we are set up for a successful 2021 and significant increases in gold production, coupled with decreased operating costs and strong free cash flow.”
As gold production lags mining and stacking activity at heap leach mines, 2021 gold production is expected to be more strongly weighted to the second half of the year due to seasonal stacking (no stacking January through March due to cold weather). Mining, crushing and stacking are expected to run at full capacity this year.
For 2021, $47 million is allocated towards sustaining capital and $8 million is budgeted for exploration.
According to a December 2019 technical report, Eagle is expected to produce an average of over 210,000 oz. of gold a year at all-in sustaining costs of $774 per oz. over a mine life in excess of 10 years.
Victoria expects to release 2020 full-year financial statements around Mar. 22.
(This article first appeared in the Canadian Mining Journal)