YUKON – Victoria Gold of Toronto is raising $25 million to be used primarily for development work at its Eagle gold deposit, part of the Dublin Gulch project 375 km north of Whitehorse.
The company is issuing 38.5 million common shares at a price of $0.65 each. The underwriters have been granted a 15% over-allotment exercisable in whole or in part within 30 days after the original offer closes on Aug. 31, 2016.
Victoria owns 100% of the Dublin Gulch property that is accessible by road all year round and lies within the Yukon electrical grid. According to the feasibility study updated last year, Victoria anticipates building an open pit with in-valley leaching. The company will have to spend $400 million to create a 212,000 oz/year operation with all-in sustaining costs of $729/oz. An all season, 100 person camp has been built at the site.
The Eagle deposit contains more than 5 million oz of gold. It has 92 million tonnes of proven and probable reserves at 0.78 g/t Au containing 2.3 million oz. The indicated resource (including reserves) is 222 million tonnes at 0.68 g/t Au containing 4.8 million oz. There are also 78 million inferred tonnes at 0.60 g/t Au containing another 1.5 million oz.
More information and technical report are posted at www.VitGoldCorp.com/.