Victoria Gold Corp. [VGCX-TSXV] said rainy conditions have significantly reduced the wildfire risk near its Eagle gold mine in the Canadian Yukon, where operations have returned to normal.
Victoria Gold shares advanced on the news, rising 1.06% or $0.07 to $6.67 in light trading volume. The shares are trading in a 52-week range of $11.16 and $6.51.
Victoria’s flagship Eagle gold mine is situated on the Dublin Gulch gold property in the central Yukon Territory, about 375 kilometres north of Whitehorse and approximately 85 kilometres from the town of Mayo.
Covering 555 square kilometer, Dublin Gulch hosts the Eagle and Olive gold deposits, which contain proven and probable reserves of 3.3 million ounces of gold, with a grade of 0.65 g/t.
Victoria Gold reported record gold production of 45,568 ounces in the second quarter of 2023. The company has said 2023 production guidance remains intact at the Eagle Gold mine and is expected to come in at between 160,000 ounces and 180,000 ounces.
Second quarter production increased by 42% from 32,055 ounces in the second quarter of 2022 due to year-round stacking and improved heap leach pad operations over the winter period in 2023 and higher gold inventory on the heap lead pad.
Following the second evacuation of Eagle on August 4, 2023, due to the proximity of the East McQuesten wildfire, favourable conditions allowed for the return of employees to the site on August 10th, the company said. “Full production rates at the operation were resumed on August 11th.’’
Yukon Wildland Fire Management demobilized from Eagle on August 13th.
“Our thoughts are with the residents of Yellowknife, Kelowna and the many other communities across Canada and internationally who continue to be affected by wildfires,’’ said Victoria Gold President and CEO John McConnell.
Prior to the impacts of the East McQuesten wildfire, the company expected to achieve annual production toward the top end of its annual guidance range. After considering the impact of the evacuation, the company said it now expects production to be at closer to the lower end of the range.
Should wildfire activity in the Yukon cause further disruption at the Eagle mine site, the company may need to revise production guidance it says.
Meanwhile, cost guidance for 2023 remains intact and all-in-sustaining costs (AISC) are expected to be between US$1,350 and US$1,550 an ounce of gold sold.
The company recently said exploration efforts at the Dublin Gulch Gold Camp continue to highlight the exceptional gold potential of the property and, in specific, the near-surface Raven Gold deposit. Raven is one of several priority on/near-surface gold targets and was the primary focus of 2022 Dublin Gulch exploration activities.