Victoria Gold Corp. [VIT-TSXV] reported that it has received the final Water Use License allowing for the construction, operation and closure of Victoria’s 100%-owned flagship Eagle Gold Project, located 85 km north of Mayo, Yukon, Canada.
The Eagle Gold Project, a proposed open-pit heap leach mine projected to produce approximately 200,000 oz of gold annually, has now been granted all major permits required to construct, operate and close the project. Victoria’s application to support the Environmental Assessment was submitted in December 2010. Since that time, Victoria has completed the Environmental Assessment (April 2013), received a Quartz Mining License (September 2014), received a Water Use License for construction (February 2015) and, as announced herein, received a Water Use License for operations and closure. This completes the major mining permits required to advance Eagle through construction and operations.
“With the final Water Use License in hand, Eagle represents a truly unique asset, being a fully permitted gold project, with First Nation support, located in Canada, capable of significant annual gold production exceeding 200,000 ozs at a low all-in-sustaining cost,” said John McConnell, President and CEO. Eagle’s low cost of production is expected to be achievable due to a number of factors including: a low strip ratio; short mine haul distances and superior infrastructure including existing year-round road access; close proximity to the Yukon electrical grid; nearby commercial airstrip; and an existing construction camp.
The final Water Use License application process culminated in a weeklong public hearing in June 2015. During the hearing the Water Board Chair stated, “… out of many of the companies or applicants that come before this Board, I think you [Victoria] are remarkable for having had with you — for the duration so far — virtually the same team. You’ve put together an ‘A’ team, and that, in turn, has led to your preparation of what — in our opinion — is a very, very good submission, and that goes a long way to assisting the entire application process. It also goes a long way to giving evidence of the trust that exists between yourselves — as the applicant — and the people in this community, and larger, the people in the Yukon Territory.”
The First Nation of Nacho Nyak Dun participated in the Water Use License application and on-going partnership through a Comprehensive Cooperation Benefits Agreement.