Victoria Gold Corp. (TSXV: VIT; US-OTC: VITFF) has completed its Phase 1 Construction de-risking program at its 2.7 million oz. Eagle Gold Project in central Yukon and is now preparing to launch its Phase 2 Construction Program for 2018.
“The Eagle Gold Project is unique amongst development projects because it is fully permitted, almost fully financed and in a safe political jurisdiction,” says Victoria Gold President and CEO John McConnell.
The Eagle Gold Project is located on the Company’s 555 sq. km Dublin Gulch property, 350 km north of Whitehorse and 85 km by road northeast of the village of Mayo in central Yukon.
The Project has an after-tax net present value of $508 million at a 5% discount rate and an after-tax internal rate of return of 30% as of a 2016 NI 43-101 feasibility study. The Eagle Gold Mine will produce approximately 200,000 oz. gold per year for 10 years once Eagle begins production as an open-pit heap-leach operation in 2019.
In August 2017, the company began a $40 million Phase 1 Construction Program to de-risk the earthworks which was completed in November.
McConnell says the company has completed 60% of the required detailed engineering. In addition, it has already tackled some of the higher risk earthworks — particularly those related to the toe of the planned heap-leach pad.
“We wanted to make sure there would be no major geotechnical surprises during construction,” says McConnell. “We’ve taken the heap leach foundation right down to bedrock and confirmed the geotechnical conditions.”
To prepare for mobilization to the site, Victoria Gold has ensured there is the infrastructure in place to facilitate construction. The Company has expanded the camp to 250 beds, and installed upgraded facilities including a dining room, recreation centre and septic field. It also built new roads on site and upgraded the pre-existing all-weather access road including some bridges.
“Something that definitely stands out in the plus column is the infrastructure,” says McConnell. “We have better infrastructure than most of northern B.C.”
The company has year-round access to the site via an all-weather gravel road which connects to a paved highway less than 50 km away. There is a commercial airstrip 80 km to the south and during Phase 2 Construction, the company will construct a 45 km power line along the access road to connect to the Yukon Energy power grid.
With construction being the focus for 2018, McConnell says exploration will take a backseat for now.
The Company’s $12.5 million Exploration Program last year was mostly focused on expanding Eagle and defining Olive Shamrock. It also included a first-pass on six other targets, and Victoria Gold intends to follow up on those in 2019.
In total, the company has 11 exploration targets identified within the 40-km-long mineralized zone on the property called the Potato Hills Trend. The most advanced target is Olive-Shamrock, which is well-defined, and located 2.5 kms from Eagle. McConnell says it will become part of the Eagle Gold Mine plan.
Between Eagle and Olive-Shamrock, the Reserve contains 123 proven and probable tonnes grading 0.67 gram per tonne gold for 2.7 million oz. gold.
“Canada has some pretty good projects in the works like Pretium and Atlantic Gold,” McConnell says. “And the next project to come on board is Eagle.”
Shares of Toronto-based Victoria Gold are currently valued at 42¢ with a 52-week range of 40¢ to 74¢. The company has a market capitalization of $212 million.