Victoria Gold eyes 200,000 oz in 2021
01 March 2021
Victoria Gold Corp.
[VGCX-T; VITFF-OTC] on Monday March 1 released production and cost forecasts
for 2021 which it expects will be the first full year of commercial production
at its flagship Eagle gold mine.
The Eagle gold mine project
is located in the central Canadian Yukon, 375 km north of Whitehorse, and 85 km
north of Mayo. Eagle is part of the larger Dublin Gulch project, which ranks as
the largest hard rock gold mine in the Yukon’s history.
This year, the mine is
expected to produce between 180,000 and 200,000 ounces at an all-in-sustaining
cost of between US$1,050 and US$1,175/oz, utilizing heap leach processing
methods. Full construction commenced on March 15, 2018.
“Successful achievement of
commercial production and operational ramp up were major milestones for
Victoria in 2020 and were completed while navigating the additional challenges
brought on by COVID-19,” said Victoria Gold President and CEO John McConnell.
“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,” he said.
“With this work complete, we are set for a successful 2021 and significant
increase in gold production, coupled with decreased operating costs and strong
free cash flow.”
Gold production will be
strongly weighted to the second half of the year due to the seasonal stacking
of ore on the Eagle leach pad, which is curtailed for the 90 coldest days of
the year, January through March. During this no-stacking period, mining
operations, primarily crushing and stockpiling of ore continues with ongoing
leaching and gold production.
Exploration spending in
2021 is estimated at US$8 million and is considered growth capital.
A fund controlled by Orion
Mine Finance Inc. recently acquired all of Osisko Gold Royalties Ltd.’s
[OR-TSX, NYSE] shares in Victoria Gold, leaving Orion with direct or indirect
control of 318.1 million shares of Victoria Gold, an amount that represents a
37% interest in the company. Orion also owns warrants to purchase an additional
25 million Victoria shares at 62.5 cents a share. The warrants expire on April
13, 2023.
On Monday, Victoria Gold
shares eased 0.2% or $0.02 to $11.25 in light trading. The shares are currently
trading in a 52-week range of $21.04 and $4.02.
Source: https://resourceworld.com/victoria-gold-e