Victoria Gold files NI 43-101 report for Eagle gold mine, Yukon
Victoria Gold Corp. [VGCX-TSX] has filed an updated NI 43-101 compliant technical report on its 100%-owned Eagle gold mine, Yukon, as reported in the company’s news release dated February 24, 2023.
The report considers cost and operating data from the last three years of operations at the Eagle gold mine. Optimizations incorporated in the report include year-round stacking on the heap leach facility (HLF), stockpiling of lower-grade material for end-of-mine-life processing, and utilization of a mobile crusher to supplement and increase production rates.
Key highlights of the updated plan are: After-tax net present value (NPV) at a 5% discount of $954-million ($1,257-million pretax), at US$1,700/oz gold and a U.S. dollar:Canadian dollar exchange rate of 0.75.
Average gold production of 202,000 ounces per year over the first eight years, with peak production of 219,000 gold ounces in 2025; average free cash flow (FCF) of $166-million per year for the first eight years with a total of $1,602-million of FCF over the LOM.
Total gold production of 2,048,000 ounces over a mine life of 12 years. This total does not include gold production prior to December 31, 2022; LOM all-in sustaining cost (AISC) of US1,114/oz of gold providing significant operating and profit margins at current gold prices; throughput increase to steady-state level of 11.5 million tonnes processed per annum during 2025.
The Dublin Gulch gold property is situated in central Yukon, Canada, approximately 375 km north of Whitehorse, and approximately 85 km from the town of Mayo. The property is accessible by road year-round, and is located within Yukon Energy’s electrical grid.
The property covers an area of approximately 555 km2 and is the site of the company’s Eagle and Olive gold deposits. The Eagle and Olive deposits include proven and probable reserves of 2.6 million ounces of gold from 124 million tonnes of ore with a grade of 0.65 g/t gold. The mineral resource for the Eagle and Olive gold deposits has been estimated to host 245 million tonnes averaging 0.59 g/t gold containing 4.7 million ounces of gold in the measured and indicated category, inclusive of proven and probable reserves, and a further 36 million tonnes averaging 0.63 g/t gold, containing 700,000 ounces of gold in the inferred category.