Highlighted results from exploration drilling at the Olive target this year include 33.3 meters of 1.54 g/t gold returned from drillhole DG17-849C, 9.1 meters of 3.14 g/t gold in drillhole DG17-856C and 13.9 meters of 1.56 g/t gold in drillhole DG17-889C.
“These latest assay results highlight the fact that additional, near-Olive gold mineralization exists at Dublin Gulch and further validates the Potato Hills Trend mineralization model which we continue to test even as construction has begun at the Eagle Gold Mine,” commented John McConnell, President and CEO of Victoria. “We are greatly encouraged with each of the targets we have tested this season at Dublin Gulch and look forward to the steady receipt of assays from this on-going campaign throughout this fall.”
At Olive, 2017 diamond drilling activities totaled 2,428 meters from seven drillholes and were designed to target areas south and west of the Main Olive Zone, areas that had received limited or no previous exploration drilling. These drillholes were all drilled as long (greater than 380 metre), shallow angle holes to test areas interpreted to represent the continuation of the mineralized Olive Shear Zone, proximal to the intrusive-metasedimentary contact, which were not possible to reach in previous year’s exploration efforts. Typically, where granodiorite was intersected, gold mineralization was encountered and where the host meta-sediments were intersected, sporadic to low-grade gold mineralization was returned, similar to the known gold mineralization within the Olive Gold Deposit. Highlighted results from the Olive Zone 2017 drilling are summarized in the table below.
*Apparent true widths are estimated at approximately 70% to 80% of intersection lengths.
Plan maps and cross sections for the 2017 Olive exploration drilling campaign will be made available on the Company website at www.vitgoldcorp.com.
Drilling during 2016 at the Olive and Shamrock targets confirmed that the targets are part of a single, larger Olive-Shamrock Zone. This was shown within the “NI-43-101 Feasibility Study Technical Report for the Eagle Gold Project, Yukon Territory, Canada” with an effective date of September 12, 2016 where an inaugural Reserve and Resource was presented for the Olive-Shamrock Zone. The Olive-Shamrock deposit includes 7 million tonnes averaging 0.95 grams of gold per tonne, containing 200,000 ounces of gold in the “Proven and Probable” category. The Olive-Shamrock NI-43-101 Mineral Resource has been estimated to host 10 million tonnes averaging 1.07 grams of gold per tonne, containing 329,000 ounces of gold in the “Measured and Indicated” category, inclusive of “Proven and Probable Reserves”, and a further 7 million tonnes averaging 0.89 grams of gold per tonne, containing a further 210,000 ounces of gold in the “Inferred” category. The Feasibility Study envisaged both the Eagle and Olive-Shamrock deposits as open-pit mines with heap leach gold recovery.
The 2017 exploration program was designed to test the potential to expand the Olive-Shamrock deposit along the intrusive-sediment contact of the Potato Hills Trend by:
- Further drilling the Shamrock target to the northwest
- See news releases dated June 9, 2017 and August 28, 2017 which included 22.5m of 2.78 g/t Au
- Further drilling the Olive target to the south and west
- Drilling the new Spinach target, which is north of Shamrock
- Spinach Drilling has been completed for 2017 and assay results are pending
About Olive and Shamrock
The Olive and Shamrock targets are defined by a broad gold/arsenic in-soils geochemical anomaly and lie on the intrusive-sediment contact of the Potato Hills Trend (as does the Eagle Deposit) and are punctuated by several historically exploited high-grade sulphide veins. The area was mined on a small scale from shallow shafts and adits in the early 1900’s and via placer mining in creeks draining the area. The Olive and Shamrock vein system is located near the top of Olive Gulch and consists of gold-bearing quartz-scorodite-arsenopyrite vein material centralized in a shear zone structure.
About the Dublin Gulch Property
Victoria Gold’s 100%-owned Dublin Gulch gold property is situated in the central Yukon Territory, Canada, approximately 375 kilometers north of the capital city of Whitehorse, and approximately 85 kilometers from the town of Mayo. The Property is accessible by road year-round, and is located within Yukon Energy’s electrical grid. The Company has constructed and maintains a 210 person all-season camp at the project site.
The Property covers an area of approximately 555 square kilometers, and is the site of the Company’s Eagle Gold Deposit. The Eagle Gold Mine is expected to be Yukon’s next operating gold mine and, between the Eagle and Olive deposits, include Proven and Probable Reserves of 2.7 million ounces of gold from 123 million tonnes of ore with a grade of 0.67 grams of gold per tonne, as outlined in a National Instrument 43-101 feasibility study. The NI 43-101 Mineral Resource for the Eagle and Olive deposits has been estimated to host 191 million tonnes averaging 0.65 grams of gold per tonne, containing 4.0 million ounces of gold in the “Measured and Indicated” category, inclusive of Proven and Probable Reserves, and a further 24 million tonnes averaging 0.61 grams of gold per tonne, containing 0.5 million ounces of gold in the “Inferred” category.
All exploration drill core from the 2017 program was logged and prepared for shipment on-site and Victoria’s Eagle Camp where they were subsequently delivered to the Whitehorse, Yukon, sample preparation facility of ALS Minerals. There, samples were crushed with prepared samples sent to ALS Minerals’ preparation laboratory facilities in Vancouver where they were analyzed by 33 element ICP-AES package ME-1CP61 with a 50 gram Fire Assay Au finish (AU-AA24). A comprehensive system of standards, blanks and field duplicates was implemented for the 2017 Dublin Gulch drilling programs and is monitored as chemical assay data became available.
The technical content of this news release has been reviewed and approved by Paul D. Gray, P.Geo., as the Qualified Person. For additional information relating to the Property, refer to the technical report entitled “NI 43-101 Feasibility Study Technical Report for the Eagle Gold Project, Yukon Territory, Canada”, with an effective date of September 12, 2016, which is available on the Company’s profile at www.sedar.com.
Cautionary Language and Forward-Looking Statements
Neither the TSX Venture Exchange, nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release. This press release includes certain statements that may be deemed “forward-looking statements”. All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities, anticipated metal production, internal rate of return, estimated ore grades, commencement of production estimates and projected exploration and capital expenditures (including costs and other estimates upon which such projections are based) and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.