Victoria Gold (TSXV: VIT) has started producing gold at its Eagle mine in the Yukon. Annual gold production is estimated at 200,000 oz. at an average all-in sustaining costs (AISCs) of US$750 per ounce.
Victoria Gold’s Eagle mine, which is on track to be the largest gold mine in Yukon, is located on the Dublin Gulch property, 85 km northeast of Mayo, Yukon.
The mine will produce doré from a conventional open-pit operation with a three-stage crushing plant, in-valley heap leach and carbon-in-leach adsorption-desorption gold recovery plant.
Osisko Gold Royalties (TSX: OR; NYSE: OR) owns a 5% net smelter return royalty on Eagle gold mine as part of a $505-million financing package that Victoria Gold signed with Osisko in April 2018. The royalty will provide Osisko with an average of 10,000 oz. gold annually over the mine’s projected 10-year mine life.
Andrew Mikitchook of BMO Capital Markets says with the first gold pour of 1,001 oz., the focus moving forward will be on ramping up the operation towards a target of 3 million tonnes of ore stacked on the heap leach before the onset of winter.
At press time, Victoria Gold’s shares were trading at 58¢ with a 52-week trading range of 32¢ to 66¢. The company has 858 million common shares outstanding for a $498-million market capitalization.
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