Victoria Gold reports long gold intercepts at Raven target in Yukon

Victoria Gold (TSX: VGCX) has released assays for the final 13 drill holes from this year’s exploration program at the Raven target within its wholly owned Dublin Gulch property in the Yukon. The intercepts featured long intervals of gold mineralization.

Drill highlights include 19 metres of 3.95 grams gold per tonne from 90 metres, within a 174-metre section of 0.76 gram gold; 11 metres of 2.13 grams gold from 183 metres, within a 126-metre section of 0.68 gram gold; and 51 metres of 1.63 grams gold starting at 122 metres, in a 107-metre section of 0.92 gram gold.

“Raven continues to deliver high-grade, near-surface gold intervals,” John McConnell, the company’s president and chief executive, said in a statement. “Raven is one of several targets identified through application of the Potato Hills Trend mineralization model. Results from this geological model highlight the extensive mineral potential of the Dublin Gulch gold camp.”

McConnell added that the Raven mineralization remains open, and the target will be a major focus of Victoria’s exploration work next year.

Overall, this year’s campaign tripled the strike extent of this zone, increasing it by over 750 metres.

Over the course of the field season, the company completed diamond drilling, surface trenching, mapping and soil geochemical surveys over the area. Victoria also collected oriented core, which, together with detailed core logging and surface mapping, will be used to vector in on controls to the mineralization.

In a note to investors, Andrew Mikitchook of BMO Capital Markets wrote that the exploration results from Raven “continue to support the probability of a second mining centre 13 km to the east of Eagle.”

The mining analyst has a $21 price target and ‘outperform’ rating on the stock.

At press time in Toronto, Victoria Gold was trading at $12.73 per share within a 52-week trading range of $4.02 and $21.04 per share. The company has 61.8 million common shares outstanding for a $787-million market capitalization.

Victoria Gold wholly owns the 555-sq.-km Dublin Gulch property, which also includes the operating Eagle gold mine. On Nov. 13, the company reduced production guidance at Eagle for the second half of this year. Based on its third-quarter output, the miner has revised its annual production guidance down to 72,000-77,000 oz. gold, at all-in sustaining costs of US$1,175-$1,275 per oz. This compares with its prior guidance for 85,000-100,000 oz. at all-in sustaining costs of US$950-$1,100 per ounce.

— This article first appeared in the Canadian Mining Journal, part of the Glacier Resource Innovation Group.