Victoria Gold’s goal of turning its Eagle Gold project into the Yukon’s next gold mine moved closer to realization.
The company announced that the Yukon Environmental and Socio-Economic Assessment Board (YESAB) finished an environmental assessment of the project and recommended that the federal government of Canada allow the project to move ahead.
The recommendation frees the company up to start on the next phase toward production.
Victoria says the roughly two-year long assessment process was helped along by its already having a comprehensive co-operation and benefits agreement with the First Nation of Nacho Nyak Dun.
The next step in the permitting process is for the government of the Yukon to issue a quartz mining license. Once that is received, construction can begin.
Victoria has been busy over the last 12 months, as the company has managed to assemble its project build team and is in advanced negotiations for project financing. All of it has been done to meet its goal of starting construction this year.
“Financing is potentially becoming the largest single hurdle facing the Eagle project as permitting is advancing,” John Hayes, an analyst with BMO Capital Markets wrote in his research note. BMO has Victoria rated as a “market perform”.
Victoria’s feasibility study from the beginning of last year pegged capex at $430 million. It is looking to raise a good portion of that capital — between $210 million to $260 million of it — through debt financing. The rest could come from a variety of places including royalties, forward sales, convertible debt or equity.
The Eagle Gold deposit is part of Victoria’s Dublin Gulch property in the central Yukon, roughly 375-km north of Whitehorse. The property stretches out over 650 km2, has year-round road access and is within the territory’s electrical grid.
Eagle Gold has probable reserves of 92 million tonnes grading 0.78 g/t Au for 2.3 million oz.
Indicated resources stand at 222 million tonnes grading 0.68 g/t Au for 4.9 million oz of gold, a number that includes the probable reserves listed above. There are an additional 78 million tonnes grading 0.60 g/t Au for 1.5 million oz. in the inferred category.
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