Last year was a formative one for Victoria Gold’s Dublin Gulch property including the proposed Eagle Gold Mine hosting a Resource of Indicated 4.8 million oz gold and Inferred 1.5 million oz gold and Reserves of 1.75 million oz gold grading 0.823 g/t.
The proposed Eagle Gold Mine will be the next mine to come on stream in the Yukon and it began the environmental assessment process through YESAA almost one year ago with the initial submission in December 2010. The environmental assessment is on track and anticipated for completion in 2012, after which Victoria will be able to begin construction under a Quartz Mining License. Construction will take place over two years and production is anticipated to start in 2014.
The proposed Eagle Gold Mine is an open-pit, three-stage crush, in-valley leach operation with a gold recovery plant. A pre-feasibility study in 2010 using US $900 gold demonstrated robust economics with a modest initial capital cost of C$281 million, operating costs below $500/oz and annual production averaging 170,000 oz over an 8 year mine life.
Over the past year Victoria has been working on and is near completion of a Bankable Feasibility Study using US$1,200 gold that is expected to significantly increase Reserves with a moderate increase in capital. The Bankable Feasibility Study will enable Victoria to make a definitive project decision and seek project financing.
In addition, Victoria Gold installed a 100-person all-season camp to support year-round advanced exploration and construction. Having road access to Dublin Gulch enables Victoria to be one of the only year-round development and exploration companies in Yukon.
In 2011, Victoria’s exploration at Dublin Gulch comprised helicopter-assisted regional geological mapping and sampling across the 350 km2 property block, together with several drill programs at the Eagle Gold deposit itself and outlying exploration targets along the Potato Hills gold-silver structural corridor.
Of particular regional interest has been the Potato Hills Belt, which is a structurally controlled belt of rocks and precious metal mineralization.