Mining News: Northern Neighbors: Expanded Eagle Gold mine plan indicates robust financial payoff

Victoria Gold Corp. Sept. 12 reported results of feasibility study that outlines a technically viable and financially robust mine at the company’s Eagle Gold project located on the Dublin Gulch property in central Yukon Territory. The operation described in the feasibility study includes a 33,700-metric-tons-per-day mine encompassing two open pits, Eagle and Olive; a three-stage crushing circuit; two in-valley leach pads; and a gold recovery plant. This operation is anticipated to produce 190,000 ounces of gold annually over a 10-year mine life, based on 116 million metric tons of reserves averaging 0.67 grams-per-metric-ton (2.66 million oz.) gold. At a US$1,250 gold price, the Eagle Mine is expected to produce a post-tax net present value (5 percent discount) of C$508 million and internal rate of return of 29.5 percent. The all-in sustaining costs are US$638/oz. of gold produced. The initial capital costs for Eagle are calculated to be C$370 million and the post-tax payback period is estimated to be 2.8 years. “The results from this feasibility study highlight the exceptional quality of the Eagle Gold project,” said Victoria President and CEO John McConnell. “Eagle is a fully permitted project in a premier jurisdiction that can produce 200,000 ounces annually with high margins and a very attractive valuation. We also believe the current and future Olive-Shamrock drilling will continue to add to this valuation.” The feasibility study anticipates one year of construction.

-Shane Lasley