Victoria Gold begins commercial production at Eagle

Victoria Gold’s (TSX: VGCX) Eagle gold mine in central Yukon reached the commercial production milestone on Canada Day. As of July 1, all of the facilities required for this stage of the mine life are now complete and, according to Victoria, the mining and processing operations are performing well.

“Site activities continue to progress well, and all facilities and operations are now at, or approaching, design capacity,” John McConnell, the company’s president and CEO, said in a news release. “This consistent production combined with materially positive operating cash flow has allowed Victoria management to declare commercial production as of July 1.”

Victoria’s first reporting period under commercial operations will be the third calendar quarter of this year.

The company also provided an update on the Covid-19 protocols for Eagle personnel. Those arriving to site from Yukon and B.C. no longer need to self-isolate before showing up to the mine, while workers from outside of B.C. and the Canadian territories are required to isolate in Whitehorse for 14 days. As a result, the mine is operating on a 4-week rotation schedule, rather than its usual 2-week rotations.

Loading ore into a haul truck at the Eagle gold mine. Credit: Victoria Gold.

In addition, last week, the company announced the release of a book on the history of the Dublin Gulch property, host to the Eagle mine. Written by Michael Gates, a Yukon-based author, Dublin Gulch: A History of the Eagle Gold Mine, covers the gold discoveries of the nineteenth century through to the mine’s first gold pour in September 2019.

“It is the story of the little company that could, Victoria Gold, of a veteran miner, John McConnell, and of his committed team of determined men and women who beat the odds and turned the dream into reality,” Gates said in a statement.

The book highlights the partnerships between Victoria and Yukon’s governments and communities since its 2009 purchase of the Dublin Gulch property. In October 2011, Victoria Gold and the First Nation of Na-Cho Nyak Dun (NND) signed a Comprehensive and Cooperative Benefits Agreement to ensure benefits and opportunities for NND citizens over the life of the mine.

Victoria Gold wholly owns the 555-sq.-km Dublin Gulch property, 375 km north of Whitehorse, which hosts the Eagle and Olive gold deposits.

Ore moves through the leach pad stacking system at Eagle. Credit: Victoria Gold.

Proven and probable reserves across Eagle and Olive total 155 million tonnes grading 0.65 gram gold per tonne for a total of 3.3 million oz. Cutoff grades for the reserves vary with deposit and material type and range from 0.15 gram gold to 0.58 gram gold.

Based on a technical report released last December, the Eagle mine is expected to produce an average of over 210,000 oz. gold per year at all-in sustaining costs of US$774 per oz. over a mine life in excess of 10 years.

At press time in Toronto, Victoria Gold was trading at $13.99 per share within a 52-week range of $4.02 and $14.21. The company has 61 million common shares outstanding for a $859-million market capitalization.

— This article first appeared in the Canadian Mining Journal. The Northern Miner and Canadian Mining Journal are part of Glacier Resource Innovation Group.