Victoria Gold - CEO, John McConnell
CEO, John McConnell
Source: Victoria Gold Corp
  • Victoria Gold (VGCX) has released a production estimate for the second half of 2020 for its Eagle Gold Mine in the Yukon Territory.
  • The company is anticipating a total output over the six-month period from July until December of between 85,000 and 100,000 ounces
  • The Eagle Gold Mine began commercial production on July 1 this year and is estimated to hold a measured and indicated mineral resource of 3.6 million ounces of gold
  • Production is expected to ramp up during the third and fourth quarters, with unit costs expected to decrease in line with increasing output levels
  • Victoria Gold (VGCX) is up 0.67 per cent and is trading at $15.02 per share

Victoria Gold (VGCX) has released a production estimate for the second half of 2020 for its Eagle Gold Mine in the Yukon Territory.

The Whitehorse-based company is anticipating a total output of between 85,000 and 100,000 ounces from July until December this year at an all-in sustaining cost of between C$1,290 and $1,500 per ounce.

Commercial production at the Eagle Gold Mine began on July 1, 2020, following the completion of all necessary facilities. With production now under way, the project will produce gold doré from a traditional open pit site with a three-stage crushing plant, in-valley heap leach and carbon-in-leach adsorption-desorption gold recovery plant.

Victoria Gold is anticipating that production will ramp-up to full capacity during the third and fourth quarters, with unit costs expected to decrease in line with increasing output levels. 

As such, all-in sustaining costs have been forecast to be in the higher region of estimates initially but will fall towards the end of the year with further improvements to be seen next year.

John McConnell, President and CEO of Victoria Gold, said achieving commercial production was a significant accomplishment for the company, its employees and contractors.

“Going forward, the team will now focus on optimising the operation and driving down all in sustaining costs,” he added.

The Eagle Gold Mine sits within the company’s wholly owned Dublin Gulch property, approximately 375 kilometres north of the capital city of Whitehorse and 85 kilometres north-northeast of the town of Mayo. Connected to the Yukon power grid, the property features a commercial airstrip used to transport personnel.

Exploration efforts at the property began in the early 1990s and continued under a number of different operators, including StrataGold which was acquired by Victoria Gold in 2009. Since 2012, the primary focus of exploration programs has been on in-fill drilling at the Eagle Zone.

According to a Technical Report released in 2019, the Eagle Gold Mine is estimated to hold a measured and indicated mineral resource of 3.6 million ounces of gold.

Victoria Gold (VGCX) is up 0.67 per cent and is trading at $15.02 per share at 10:53am EDT.

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