Canadian Mining Journal

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GOLD: Feasibility of Victoria Gold’s Eagle project is promising



YUKON – Toronto-based Victoria Gold Corp. says the feasibility study for its Eagle gold project on its Dublin Gulch property is promising. At US$1,250 gold, the project has a post-tax net present value (5%) of C$508 million and an internal rate of return of 29.5%.

The project, located 375 km north of Whitehorse in the Mayo district, is fully permitted. Pre-production capital requirements (including contingency) are C$396.6 million.

Victoria Gold is anticipating average annual gold production at a rate of 210,000 oz per year over the initial four full years of operation or 190,000 per year over the 10-year life of the project. All-in sustaining costs will be US$638 per oz, and the initial capital expenditure will be C$270 million.

The pit constrained resource is 181 million measured and indicated tonnes grading 0.63 g/t Au and containing 3.6 million oz of gold. The inferred resource is 17 million tonnes averaging 0.49 g/t Au. A cut-off of 0.15-g/t was used in calculating the resources.

Reserves are found in the Eagle (approximately 95%) and Olive pits. Together they total 123 million tonnes grading 0.67 g/t Au and containing 2.66 million oz.

Mining will be done conventionally with trucks and shovels, delivering an average of 30,100 t/d to the primary crusher. Crushed ore will be stacked in 10-metre high lifts, and then primary leaching will occur for 90 days. Gold will be stripped from the pregnant solution and ultimately poured into doré bars.

Several technical reports on the Eagle gold property are posted at www.VitGoldCorp.com, and the feasibility study will probably be available on the same site soon.