- Victoria Gold (VGCX) has updated its mineral resources and reserves report for its Eagle Gold Mine in the Yukon with an increased gold production rate
- The project has an after-tax net present value of $954 million, increased average gold production of 202,000 ounces a year
- Total proven and probable reserves showed 2.58 million contained gold ounces
- total mineral resources now include 4.73 million gold ounces for the inferred and indicated categories
- Victoria Gold (VGCX) is down 0.48 per cent, trading at $8.25 per share as of 11:44 a.m. EST
Victoria Gold (VGCX) has updated its mineral resources and reserves report for its Eagle Gold Mine in the Yukon with an increased gold production rate.
Aside from this, the project’s mineral resources and reserves, as well as the life of mine plan, have been updated.
John McConnell, President and CEO, commented
“We have also seen a significant increase in mineral resources with the success of our recent exploration drilling, substantiating the operation’s long-term production profile and mine life.”
For the life of mine plan, key highlights include an after-tax net present value of $954 million, increased average gold production of 202,000 ounces a year, and an average free cash flow of $166 million per annum for eight years.
This means the company’s total gold production for the project would be roughly 2.04 million ounces over 12 years. This total does not include gold production prior to 31 December 2022. Additionally, Victoria Gold expects the throughput to increase to 11.5 million tonnes processed per annum during 2025.
Reserves and resource estimates show value
As for the total proven and probable reserves, the report showed 124 million tonnes at 0.65 grams of gold per tonne for 2.58 million contained gold ounces. Also, total mineral resources now include 4.73 million gold ounces for the inferred and indicated categories.
According to the company, the Eagle Gold mine is an open pit gold mine focused on two pits, Eagle and Olive. Work on these pits is said to be completed in 10 years, with an average mining rate of 67.7 thousand tonnes per day.
Victoria Gold stated this gold recovery has trended in line with the 2019 estimates. The mine life’s ultimate recovery rate is projected to be 76.2 per cent.
Victoria Gold (VGCX) is down 0.48 per cent, trading at $8.25 per share as of 11:44 a.m. EST.