Victoria Gold

V.VIT, Victoria Gold, gold, yukonVictoria Gold Corp. is a leading gold exploration and development company. The Company’s Eagle Gold Project in Yukon Canada hosts a National Instrument 43-101 compliant Reserve of 2.7 million ounces of gold (123Mt @ 0.67 g/t). The Eagle Gold Project is shovel-ready and when in production will produce

John McConnell
John McConnell, CEO

~200,000 ounces of gold annually at an operation cost of approximately $550 per ounce. The Project is permitted for construction and operations. Victoria’s shareholders are well positioned to participate in a highly leveraged gold play and construction of the largest gold mine in Yukon History.

Victoria Gold holds a strong cash position which enables the Company to advance Eagle development on a value add basis as we continue construction and near operations.

Click for TMX Money Victoria Gold (V.VIT) stock price

Victoria Gold’s President and CEO is John McConnell whose Motherlode Directory page is here.

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Victoria Gold: Eagle Construction Update, Canada’s Next Gold Mine

Victoria Gold Corp. (TSX.V-VIT) “Victoria” or the “Company” is pleased to provide a construction update for the Eagle Gold Project, Yukon Canada. Full construction commenced on March 15, 2018 with first gold pour scheduled for the second half of 2019.

John McConnell, President & CEO commented, “I am very pleased to welcome Dave Rouleau, Vice-President & General Manager, to the senior management team. Dave is a seasoned mine operator and an exceptional addition to the team as we gear up for operations in 2019.” John McConnell continued, “Construction activities are progressing very well and I am encouraged with our on-going success engaging Yukon based companies and First Nation partnered businesses resulting in a high level of Yukon based employment, an important component of building Eagle, Yukon’s next gold mine.”

Recruitment
The Company is pleased to announce David Rouleau has recently joined the senior management team as VP Operations & General Manager for Eagle.

David is a Mining Engineer with over 30 years of operational and management experience. He was recently the VP of Operations with Barkerville Gold Mines Ltd. and prior to that, spent 5 years with Taseko Mines Limited as VP of Operations primarily responsible for the open pit Gibraltar Mine in central British Columbia. David was also a key member of Canadian Natural Resources Limited senior management team while developing the Horizon Oil Sands Project in Fort McMurray. David’s background further includes 17 years with Teck Cominco in various operations and engineering roles at a number of their mine sites. David holds a B. Sc. Mine Engineering Degree from South Dakota School of Mines and a Mine Technology Diploma from the Haileybury School of Mines.

Victoria has recently bolstered its senior project team through the additions of Maintenance, Process and HR Managers; Douglas Desaulniers, Barry Carlson, and Eileen Olivier respectively. Ongoing discussions with candidates to round out the senior project team are progressing well and the Company expects to have the full owner’s team in place in the very near future.

During the month of August, 250 Yukon residents worked on the project representing approximately 44% of the total work force. To date, the average Yukon resident employment at site is approximately 56% with 10% of the total representing local employment from the Mayo area.

Engineering
Overall engineering is now approximately 89% complete and the remaining engineering work is not critical to meet the operations schedule. Engineering remains on track to be substantially complete in October 2018, save for minor engineering support for the remainder of construction through mechanical completion.

Procurement
Total project commitments through the end of August 2017 was C$304 million with C$178 million incurred cost. To date, approximately C$129 million in commitments have been awarded to Yukon based or First Nation partnered companies.

Procurement remains on track with all major procurement packages now complete. All major long lead items have been procured, materially reducing the risk of schedule delays for construction completion and first gold pour in H2 2019. The majority of remaining procurement packages carry short (<8 week) lead-times and enough float that they do not impact the construction schedule.

Primary mobile mining equipment has been delivered to site. Both CAT 6040 front shovels and six of eleven CAT 785 haul trucks have been assembled and commissioned. The balance of the haul truck fleet is in active assembly with the remaining truck boxes currently on route to site.

Major crushing equipment for the primary, secondary and tertiary crushers are all in transit with the majority of equipment now in country and continually being delivered to site.

The overland conveyor and mobile conveying equipment for the course ore stock pile and heap leach facility are currently in manufacturing as are major components of the gold recovery plant.

Site Construction
Total on-site construction work to date exceeds 540,000 hours. There are approximately 380 construction personnel current at site and will reach 430 people in the coming weeks. A strong health, safety and environmental program and culture have been established at site. The Total Recordable Incident Frequency and Lost-Time Incident Frequency Rate were 2.01 and 0.40 respectively as of August 31, 2018.

Major earthworks are well advanced on site. The crusher, gold plant and on-site access road earthworks are substantively complete with only minor work remaining in these areas. The heap leach facility earthworks (including the embankment, pad area and event pond) are advancing well and currently slightly ahead of schedule. This has enabled an early start to liner placement on the heap leach pad which began in early September with nearly 10,000 m2 of the heap leach pad now covered.

Structural concrete emplacement is well advanced and major concrete for the gold and crushing plants are scheduled to be complete by the end of October. Structural steel deliveries have started arriving at site and steel erection at the gold plant has begun.

The power line right of way has been cleared, poles have been delivered and pole placement is set to begin shortly.

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 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 under construction and is expected to be Yukon’s next operating gold mine. 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.

Qualified Person
The technical content of this news release has been reviewed and approved by Tony George, P.Eng., 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.

For Further Information Contact:
John McConnell
President & CEO
Victoria Gold Corp
Tel: 416-866-8800
Fax: 416-866-8801
www.vitgoldcorp.com

View construction progress photos:

http://www.globenewswire.com/NewsRoom/AttachmentNg/3f88cc86-40a5-4127-b9cf-30af29fb8fc9
http://www.globenewswire.com/NewsRoom/AttachmentNg/e7a72e33-4553-498a-8b5c-9725af8cd039
http://www.globenewswire.com/NewsRoom/AttachmentNg/1fdb792d-e52d-4ea6-8bf0-9a62b9fa66d6
http://www.globenewswire.com/NewsRoom/AttachmentNg/9f4ac23e-d0c5-4344-9a87-4976c1d874aa
http://www.globenewswire.com/NewsRoom/AttachmentNg/8c60a745-080d-43a7-98ce-c8d20e25f146
http://www.globenewswire.com/NewsRoom/AttachmentNg/c09887de-f1cc-4875-a21b-28d1d8d58979

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Victoria Announces Grant of Stock Options

Victoria Gold Corp. (TSX-V: VIT-V) The Board of Directors of Victoria Gold Corp. (the “Company”) has granted 4,020,000 options to employees, consultants, directors and officers of the Company. The option grant is in connection with the addition of an officer, two new directors and numerous new employees as the Company continues to build its operations team while constructing the Eagle Gold Mine. The issuance is made under the stock option plan of the Company. This plan was approved by shareholders on September 11, 2017 and allows the Company to issue a number of options up to 10% of its rolling issued and outstanding common shares. Including this issuance, outstanding options represent approximately 3.8% of issued common shares. The options have an exercise price of $0.50 and are exercisable for a period of 3 years from the date of the grant thereof with a vesting period of 12 months.

About the Dublin Gulch Property
Victoria Gold’s 100%-owned Dublin Gulch gold property is situated in the central Yukon Territory, Canada, approximately 375 kilometres north of the capital city of Whitehorse, and approximately 85 kilometres from the village of Mayo. The Property is accessible by road year-round and is located within Yukon Energy’s electrical grid.

The Property covers an area of approximately 555 square kilometres 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.

Qualified Person
The technical content of this news release has been reviewed and approved by Tony George, P.Eng., 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.

For Further Information Contact:

John McConnell
President & CEO
Victoria Gold Corp
Tel: 416-866-8800
Fax: 416-866-8801
www.vitgoldcorp.com

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CBC covers Victoria Gold’s BIG Shovel

When you are going to take down a mountainside you need a big shovel. Victoria Gold (V.VIT) is building its Eagle Creek project and, yes, it is taking down a mountainside and it is using not one but two giant shovels nicknamed “Beauty” and “The Beast”.

The hydraulic shovels were built in Germany and have been shipped to the Eagle Project near Mayo in the Yukon.

The CBC covered the shovel story and quoted Victoria CEO John McConnell on the overall project:

“”You know I think we have just over 300 people, men and women workers, at camp now, spending $1.1 million a day, significant expenditure and we are getting a lot of work done.”

You can read the CBC piece here. 

And here is one of the shovels – it is not clear if this is “Beauty” or “The Beast”.

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Victoria Gold’s 2018 Exploration Program Underway at Dublin Gulch, Yukon

Victoria Gold Corp. (TSX.V-VIT) “Victoria” or the “Company” is pleased to announce that the 2018 Dublin Gulch exploration campaign is well underway. This season’s exploration activities are supported by satellite camps that have been built to allow exploration to proceed without impact to the on-going construction of the Eagle Gold Mine.

Two diamond drills and associated heavy equipment to support 2018 exploration initiatives at Dublin Gulch are on the property and will be fully engaged for the duration of the 2018 program. Exploration is expected to proceed throughout the remainder of the field season, and will concentrate on the Olive-Shamrock, Bluto, Nugget and VBW targets and include mapping, prospecting, surface trenches, soils geochemistry, geophysical surveys and diamond drilling.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/dcf589f4-7552-4c9f-8c57-ad5612612f25

“While mine construction is Victoria’s primary focus this year, the Company does not intend to let the untapped mineral potential of the Dublin Gulch property remain untested,” stated John McConnell, President & CEO. The 2017 Dublin Gulch exploration program was highly successful. Through the drill-bit, the Company was able to demonstrate that there is much more to the Eagle Gold Mine than captured in the 2016 Feasibility Report in terms of gold mineralization and potential for extra mine life. Additionally, last season’s work successfully advanced known areas of gold mineralization such as Olive-Shamrock as well as opened access for the first time to a series of new mineralization targets including Spinach, Bluto and Nugget.  Any of these target areas have the potential to host another Eagle or Olive-Shamrock style deposit, and we look forward to demonstrating additional, definable gold deposits across the highly prospective Dublin Gulch Property in the coming years.”

The Company plans to continue step-out and definition drilling at Olive-Shamrock-Spinach with the intention of expanding the known, near-surface, minable tonnage along the mineralized shear zone. Additionally, two first-order targets on the 13 kilometer plus Potato Hills Trend; Bluto and Nugget, will undergo advanced exploration. In addition to their geological potential, these targets are each accessible from Eagle Mine infrastructure by an existing access trail network.

Victoria’s exploration efforts at Eagle and Olive-Shamrock over the last several seasons have greatly advanced the Potato Hills Trend mineralization model which defines intrusion-related mineralization along a general northeast-southwest contact across the entirety of the Dublin Gulch and adjacent VBW claim blocks. It was the application of this mineralization model that drove the definition of the Olive-Shamrock zone.

2017 Dublin Gulch Exploration program highlights* included:

  • 34,000 meters of exploration diamond drilling and over 5,600 meters of surface trenches
  • confirmation of Eagle mineralization persisting to the North, West and to depth with successful drilling of the Eagle West, Eagle Extension and Eagle Deep zones
  • drillhole DG17-930C, the deepest hole ever drilled at Eagle, returned 104.6 meters of 1.20 g/t Au to depth, below the current Eagle Mine pit while also demonstrating the validity of the Eagle Resource Model and additional resources within the Eagle mine pit
  • the establishment of on-surface, Eagle-style mineralization at the Eagle West target through a 50 x 50 meter drill-out delineating a potential location for mineralized overliner material for the Eagle Gold Mine heap leach facility
  • >20,000m of post 2016 Feasibility Study drilling completed on the Olive-Shamrock Deposit targeting resource expansion
  • trench and drillhole gold mineralization discoveries on the Catto, Spinach and Bluto targets; including Bluto trench TR17-16 which returned 30 meters of 2.5 g/t Au
  • property wide airborne geophysics, detailed LiDAR topographic surveys and orthophotography
  • targeted geophysical and geochemical surveys (~6,500 soils samples) to expand upon and identify high priority areas for exploration (Dublin Gulch and VBW Claims)
  • over 40 kilometers of reestablished and newly constructed exploration access trails, affording first time ever vehicular access to Spinach, Bluto, Rex and Nugget targets

*(See the Company’s 2017 Exploration News Releases)

About Olive-Shamrock-Spinach
The Olive-Shamrock-Spinach 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-Shamrock-Spinach 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.

At Spinach, 2017 diamond drilling activities totaled 6,265 meters from twenty-two drillholes that targeted an area north of the Olive-Shamrock zone along the northern margin of Dublin Gulch intrusive stock. An increase in silver content associated with the gold mineralization at Spinach was noted and is interpreted to represent a secondary mineralization event with respect to the Olive-Shamrock deposit, a fact that highlights the mineral potential of this new area.

The Company will continue step-out and definition drilling at Olive-Shamrock-Spinach towards expansion of the known, near-surface, minable tonnage along this mineralized shear zone trend, particularly within the Shamrock-Spinach portion of the Olive Shamrock zone where 2017 drilling demonstrated mineralization continuity; including:

Spinach 2017 Highlighted Drill Results

Hole IDFrom (m)To (m)Length (m)*Gold (g/t)Silver (g/t)
DG17-853C22.954.932.00.783.34
including29.030.51.53.295.70
and including33.635.11.51.412.30
and including42.744.21.53.552.60
and including48.850.31.51.554.70
and including53.354.91.53.6928.20
and102.1108.26.10.981.22
and including105.2106.71.52.741.30
DG17-857C13.718.34.62.416.82
and38.151.813.70.445.95
including44.245.71.51.505.10
and81.986.95.04.267.45
including85.386.91.513.4021.70
and101.0103.12.01.504.70
and126.5134.59.20.53
including129.4131.11.72.472.10
DG17-860C6.68.52.01.447.10
and24.430.56.12.387.15
including24.425.91.58.4922.60
and including44.547.22.81.258.83
and including124.8126.51.71.923.10
DG17-862C10.7147.8137.20.407.48
including33.5104.170.50.5812.68
and including33.542.79.11.194.85
and including63.772.38.60.9360.42
and including89.9104.114.20.8615.48
and including99.1105.76.61.3023.03
and including124.7126.51.81.9524.10
and including138.7140.21.51.4012.30
and including146.3147.81.51.20
DG17-866C21.823.71.91.0025.10
and29.030.51.51.4914.50
and85.399.714.31.04
including95.596.00.625.709.30
DG17-877C30.535.14.61.365.80
and88.9105.216.30.673.10
including99.1100.61.54.7824.50
including147.8149.41.52.202.40
DG17-886C145.8189.043.20.65
including145.8163.117.31.05
and including145.8147.82.05.023.20
and including158.5160.01.52.23
and including161.5163.11.51.99
DG17-896C209.1217.98.81.2211.79
including212.7214.51.85.8043.50

*Apparent true widths are estimated at approximately 70% to 80% of intersection lengths

About Bluto Zone
2.5 kilometers east of the Olive-Shamrock-Spinach zone and on strike with the Potato Hills Trend lie a series of Cretaceous granodiorite intrusions that have seen only limited exploration work until 2017. A suite of historic stream sediment samples identified the creek draining this zone as highly anomalous in arsenic and gold. A summer 2013 exploration program, designed to test this area as a possible extension, returned grab samples up to 8.2 g/t Au in the quartzite host rock. A detailed, grid-based soils geochemical program was subsequently conducted and a strong gold+arsenic-in-soils anomaly associated with the intrusive stocks was identified. This drill ready target is now readily accessible and will be a focus of the 2018 Dublin Gulch exploration program.

A total of 29 trenches consisting of approximately 3,300 meters were tested by 1,444 assay samples during the 2017 Bluto surface sampling campaign followed up by approximately 3,300 meters of diamond drilling from 18 holes.

The 2017 Bluto Zone trenches represented a combination of targeted trenches constructed across the Bluto gold+arsenic-in-soils geochemical anomaly, trenches designed to expose the intrusive-metasedimentary contacts as well as trenches built in conjunction with access construction trails where bedrock exposure was evident.

Diamond drilling targeted the mapped intrusive-metasedimentary contacts within the two kilometer by one kilometer gold+arsenic-in-soils anomaly and was further refined to test mineralized veins identified from initial trench activities. Bluto is a main focus for 2018 exploration activities.

Nugget
The Nugget target, the second largest Cretaceous granodiorite intrusive on the Dublin Gulch Property (second only the Dublin Gulch Stock that hosts the Eagle Gold mine), consists of a 2.2 kilometer by 1.2 kilometer, medium to coarse grained granodiorite stock of the Cretaceous age Tombstone Plutonic Suite. The Nugget stock is hosted in the Earn Group and the Keno Hill Quartzite lithologies. Coincident gold+arsenic-in-soils anomalies occur along the contact margins of the Nugget stock. This intrusion is akin to the Eagle Deposit, and has been the subject of only limited historic exploration work due to the previous inaccessibility of the area.

Historically, a defined gold-in-soils geochemical anomaly that graded up to 1.12 g/t in soils has been defined along with trench samples that graded up to 5m of to 2.38 g/t Au and grab samples up to 1.35 g/t Au.

During the 2017 Program an approximately 5 kilometer long access trail was constructed and has, for the first time ever, allowed vehicular access to this high priority target. A grab sample collected in 2017 from a vein uncovered during Nugget access construction consisted of primarily galena and returned values of 1,440 g/t Ag, 63.44 % Pb, 1.435 % Zn. Another 2017 grab sample from a vein consisting of primarily sulphosalts (jamesonite) returned values of 0.515 g/t Au, 82 g/t Ag 20.3% Pb, 8.34 % Sb, and 4.2 % As. Lastly, a 2017 grab sample from an historic trench on the Nugget stock returned 0.202 g/t Au, 3.7 g/t Ag and 1.3 % As.

Mineralization encountered within the Nugget target thus far consists of polymetallic veins occurring within the host rocks peripheral to the Nugget stock as well as disseminated arsenopyrite within in the granodiorite.

The Nugget target, including those areas of highly anomalous gold+arsenic-in-soils and within historic trenches has never been drilled and has been largely assessed only for tungsten mineralization potential. Nugget will be a high priority for 2018 exploration efforts with a full series of drilling, mapping, geochemical and geophysical surveys planned.

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.

Analytical Method
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-ICP61 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 were monitored as chemical assay data became available.

All exploration trench samples from the 2017 program were collected in-situ from constructed trenches 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 coarse samples rush sent to ALS Minerals’ analytical laboratory facilities in Vancouver where they were analyzed by 33 element ICP-AES package ME-ICP61 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 trench programs and were monitored as chemical assay data became available.

Qualified Person
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.

For Further Information Contact:
John McConnell
President & CEO
Victoria Gold Corp
Tel: 416-866-8800
Fax: 416-866-8801
www.vitgoldcorp.com

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Yukon Ho!

I am just back from five busy days in the Yukon. Visited Victoria Gold, Western Copper and Gold, Alexco, White Gold, ATAC and Nickle Creek and spoke to another eight or nine companies at the Yukon Mining Alliance’s Yukon Mining Conference in Dawson City.

I will be writing about all these companies over the next few weeks and I know that the visits and the conversations will create backgrounds for articles throughout the year. As with any intensive trip, some of the items not on the agenda left lasting impressions. Here are a few.

Putting Peter Tallman of Klondike Gold’s (V.KG) “Guilligan’s Island” tour of the placer fields of Bonanza Creek on an agenda would be great if you could nail him down. Tallman is a keen storyteller and as you drive in the direction of his Klondike property, you learn about how men won fortunes from Bonanza Creek and the creeks which feed it. You get a real sense of the way the first Klondike gold rush created overnight millionaires and you also hear about the modern day “range wars” over disputed claims and placer workings (ask about how “Two by Four” Bob got his nickname). Tallman is a geologist by training but he sees that as including getting the full history of the property and district he’s working in. When you are looking for the source of the gold which filled the creeks you need to know where that gold was found. If you are up in Dawson you can give Peter a call and there is every chance the pick-up truck version of the Minnow will take you up Bonanza Creek and back in the real history of the Klondike. (You can also find out a lot about Murray Pezim who Tallman worked with for years.)

On another axis entirely, it was amazing to meet Heather White, COO of Nickle Creek Platinum (T.NCP). There are very few recent legends in Canadian Mining but Voisey’s Bay Nickel in Northern Labrador is very much one of them. From the Feasibility study to building the mine as the Mine Manager, White ran the project. And she is no stranger to Yukon having been Electrum’s Director on the Victoria Gold Board until last week. It is a hugely impressive career which, to the chagrin of Graeme Jennings, Nickle’s Corporate Development guy, she has to be coaxed into talking about.  The repositioning of Nickel  Creek from a platinum story to a nickel story – same rocks, different concept  – will be driven by Smith’s absolute command of the nickel space and the mining engineering needed to turn the side of a mountain into an open pit producing the right concentrates for the right markets. It is a treat to meet someone this impressive only to discover they are modest to a fault. Like a lot of engineers, White is more about doing than talking but once she gets going you learn the nuts and bolts of nickel mining and processing quickly and painlessly. If there is a mine to be built at Nickel Creek’s Wellgreen Mountain deposit, White’s quiet competence will “get’er done”.

My pal Paul Gray, VP Exploration at Victoria Gold (V.VIT), remains great value. We drove to some of the same spots we went to last year. Where Paul had been pointing to lines of spruce and saying “And that’s where we’ll put the crusher” last year, this year he could point at huge gashes in the forest and really big bulldozers pushing lots of dirt and say the same thing. VIT is now pretty much a construction zone. So much so that Paul and his exploration team will be setting up a satellite camp in the hills behind the Eagle deposit. Explorationists seem to need a level of informality which is impossible, in fact dangerous, in a construction zone.

More or less en passant Paul revealed the not very well kept secret of gold discovery location, “Placer miners are my leading geo-technical indicator.” Which suggests that the Eagle Gold Mine is just the first chapter in Victoria’s Dublin Gulch District. There are a lot of placer operations in the creeks surrounding the Eagle Mine and they are recovering sharp-edged nuggets suggesting that the gold in the streams has not travelled far from the hills Paul is exploring.

 

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Victoria Gold Appoints Sean Roosen and Jacques Perron to its Board of Directors

Victoria Gold Corp. (the “Company” or ‘Victoria) (TSX-V:VIT-V) is pleased to announce the addition of two experienced and respected mining professionals, Sean Roosen and Jacques Perron, to its Board of Directors representing our two new strategic investors, Osisko Royalties and Orion Resource Partners respectively.

“We are excited and fortunate to welcome two new high calibre directors to the Victoria Board. Both Sean and Jacques bring extensive mine building and operating experience which will serve Victoria well as we continue construction of the Eagle Gold Mine,” said Sean Harvey, Board Chair.

Mr. Sean Roosen is the Chair of the Board of Directors and Chief Executive Officer of Osisko Gold Royalties. Mr. Roosen was a founding member of Osisko Mining Corporation (2003) and of EurAsia Holding AG, a European venture capital fund. Mr. Roosen has over 30 years of progressive experience in the mining industry. As founder, President, Chief Executive Officer and Director of Osisko Mining Corporation, he was responsible for developing the strategic plan for the discovery, financing and development of the Canadian Malartic Mine. He also led the efforts for the maximization of shareholders’ value in the sale of Osisko Mining Corporation, which resulted in the creation of Osisko Gold Royalties. Mr. Roosen is an active participant in the resource sector and in the formation of new companies to explore for mineral deposits both in Canada and internationally.

Mr. Jacques Perron, has worked in the mining industry for more than 30 years and has extensive technical and operations experience. Mr. Perron was appointed as a director of Centerra Gold Inc. in October 2016. Most recently Mr. Perron was President, Chief Executive Officer and Director of Thompson Creek Metals Company Inc. Prior to joining Thompson Creek in 2013, Mr. Perron was President and Chief Executive Officer of St Andrew Goldfields Ltd. since 2007. Previous senior management positions included Senior Vice President of IAMGOLD Corporation from 2006 to 2007 and Vice President, Canada of Cambior Inc. from 2004 to 2006. From 1984 to 2004, Mr. Perron held a variety of increasingly senior management positions with Cameco Inc., Placer Dome Canada Limited, Breakwater Resources Ltd., Cambior Inc., JS Redpath Ltd. and Noranda Inc. Mr. Perron has also been a director of the Canadian Mineral Industry Education Foundation since 2007.  Mr. Perron has a Bachelor of Science degree in Mining Engineering from l’École Polytechnique de Montréal.

Ms. Heather White has resigned from the Company’s Board of Directors. Ms. White represented Electrum Strategic Opportunities Fund and with our recent financing their interest fell below the ten percent threshold the Board felt appropriate to warrant board representation.  Sean Harvey, Board Chair noted, “Heather has been an integral member of Victoria’s Board for the past two years as the Company continued its progression toward becoming a gold producer. We thank Heather for sharing her expertise, passion and professionalism and wish her well in her future endeavours.”

About the Dublin Gulch Property
Victoria Gold’s 100%-owned Dublin Gulch gold property is situated in the central Yukon Territory, Canada, approximately 375 kilometres north of the capital city of Whitehorse, and approximately 85 kilometres from the village of Mayo. The Property is accessible by road year-round and is located within Yukon Energy’s electrical grid.

The Property covers an area of approximately 555 square kilometres 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.

Qualified Person
The technical content of this news release has been reviewed and approved by Tony George, P.Eng., 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.

For Further Information Contact:

John McConnell
President & CEO
Victoria Gold Corp
Tel: 416-866-8800
Fax: 416-866-8801
www.vitgoldcorp.com

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Victoria Gold: Eagle Gold Mine Construction Pictures and Grant of Options

Victoria Gold Corp. (the “Company” or ‘Victoria) (TSX-V:VIT-V) is pleased to present a suite of pictures from the Company’s Dublin Gulch property. The Dublin Gulch property hosts the Eagle Gold deposit which is fully financed and under construction. The Eagle Gold Mine’s first gold pour is scheduled for the second half of 2019, is expected to produce over 200,000 ozs of gold per year and will be Yukon’s next and largest ever gold mine.

Please click the link below to be taken to the Company’s website and view the Eagle Gold Mine construction update slideshow.

www.vitgoldcorp.com

The Board of Directors has granted 6,040,000 options to employees, consultants, directors and officers of the Company. The option grant is the result of the Company’s annual compensation review and the issuance is made under the stock option plan of the Company. This plan was approved by shareholders on September 11, 2017 and allows the Company to issue a number of options up to 10% of its rolling issued and outstanding common shares. Including this issuance, outstanding options represent less than 4% of issued common shares. The options have an exercise price of $0.50 and are exercisable for a period of 3 years from the date of the grant thereof with a vesting period of 12 months.

About the Dublin Gulch Property
Victoria Gold’s 100%-owned Dublin Gulch gold property is situated in the central Yukon Territory, Canada, approximately 375 kilometres north of the capital city of Whitehorse, and approximately 85 kilometres from the village of Mayo. The Property is accessible by road year-round and is located within Yukon Energy’s electrical grid.

The Property covers an area of approximately 555 square kilometres 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.

Qualified Person
The technical content of this news release has been reviewed and approved by Tony George, P.Eng., 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.

For Further Information Contact:

John McConnell
President & CEO
Victoria Gold Corp
Tel: 416-866-8800
Fax: 416-866-8801
www.vitgoldcorp.com

A photo accompanying this announcement is available at A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/3aa5adf3-c3b1-42a4-9d3c-ee64ee9ac432

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Victoria Gold Provides Eagle Development Update, Yukon Territory

Victoria Gold Corp. (TSX-V:VIT) “Victoria” or the “Company” is pleased to provide a construction update for the Eagle Gold Mine Project (the “Project”), Yukon Canada. Full construction commenced March 15, 2018 with completion and first gold pour scheduled for the second half of 2019.

“The successful construction program completed late in 2017 allowed us to hit the ground running and construction of the Eagle Gold Mine is off to an outstanding start,” stated John McConnell, President & CEO. “I am pleased with the significant number of Yukon based companies and Yukon First Nation partnered businesses that have already been engaged for construction which has resulted in a high level of local hiring. This is an important focus area for Victoria as we build Yukon’s next and largest ever gold mine.”

Engineering
Significant ramp up of engineering activities occurred during March and April with overall engineering now at approximately 65% complete. Currently, engineering activities are focused on Issued For Construction (“IFC”) drawings for concrete site works, power transmission and schedule driven deliverables based on fabrication and equipment delivery schedules.

Procurement
Total Project commitments to date are nearly C$200 million with C$55 million incurred cost.  The 2016 Feasibility Study construction capital plus year one sustaining capital was estimated at C$411 million, and the revised construction capital estimate was finalized at C$442 million. The decision to purchase all new, as opposed to used, major mobile equipment (to improve operational efficiency and take advantage of attractive pricing) as well as inflationary increases in pricing across the Project were main drivers for this capital increase. All major long lead items have been procured, materially reducing the risk of schedule delays for construction completion toward first gold pour. All primary mobile mining equipment is scheduled to arrive at site in June 2018 with crushers to follow in the Fall of this year.

Site Construction
Major earthworks are well underway on site and are focused on the crushing plant, gold recovery plant and heap leach facility preparation. Concrete contracts have been awarded and casting of foundations for the crushing and gold recovery facilities will start this July. Camp expansion from 250 to full 450 bed capacity has been on-going and is scheduled for completion by the end of this month.

Total on-site construction work to date exceeds 185,000 hours. A strong health, safety and environmental program and culture have been established at site as witnessed by no lost time accidents.

Recruitment
Victoria continues to recruit senior staff for the owner’s team as operational readiness planning develops. This month, the Company welcomes staff to the environmental and site support team with a continued focus on hiring Yukoners.

Permitting
Pursuant to the Company’s Water License, Victoria is required to submit a number of post licensing submissions for Review and Approval as a condition of license. Earlier this year, the Company made submission of the revised heap leach facility design and 3 plans requiring Review and Approval under the existing Water License. On May 14, 2018 the Company received a letter from the Water Board stating these plans, as revised, are sufficient in nature to require an amendment to the license rather than being captured under the Review and Approval process outlined in the existing license. The Company believes all technical information required to satisfy the amendment requirements has already been submitted and the Company is currently preparing the amendment application, which will be submitted later this week.

Importantly, the existing Water License remains in effect. Site construction activities remain unaffected and the Company believes there will be no interruption to the construction schedule as a result of this directive.

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.

Qualified Person
The technical content of this news release has been reviewed and approved by Tony George, P.Eng., 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.

For Further Information Contact:
John McConnell
President & CEO
Victoria Gold Corp
Tel: 416-866-8800
Fax: 416-866-8801
www.vitgoldcorp.com

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Victoria Gold Enters into Gold Hedging Program for Eagle Gold Project, Yukon

Victoria Gold Corp. (TSX-V:VIT) (the “Company”) is pleased to report that the Company has entered into a gold price protection program (the “Hedging Program”) with Macquarie Bank Limited. The objective of the Hedging Program is to mitigate the risk associated with adverse fluctuations and volatility in the price of gold during the critical early years of operation and debt repayment.

The Hedging Program is unsecured and is a zero-cost collar. Details include:

  • 100,000 ozs of put options were purchased with a strike price of Cdn$1,500/oz,
  • 100,000 ozs of call options were sold with a strike price of Cdn$1,936/oz, and
  • the 100,000 ozs include 40,000 ozs in 2020 and 60,000 ozs in 2021.

“Entering into a limited Hedging Program is consistent with Victoria’s approach to de-risk Eagle development technically and financially,” said John McConnell, President and CEO.

About the Dublin Gulch Property
Victoria Gold’s 100%-owned Dublin Gulch gold property is situated in the central Yukon Territory, Canada, approximately 375 kilometres north of the capital city of Whitehorse, and approximately 85 kilometres from the village of Mayo. The Property is accessible by road year-round and is located within Yukon Energy’s electrical grid.

The Property covers an area of approximately 555 square kilometres and is the site of the Company’s Eagle Gold Deposit. The Eagle Gold Mine is under construction and is expected to be Canada’s next operating gold mine.

About Macquarie Bank Limited
Macquarie Bank Limited is a leading provider of risk management, lending, and financing services across the commodities sector.

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.

For further information contact:

John McConnell
President & CEO
Victoria Gold Corp
Tel: 416-866-8800
Fax: 416-866-8801
www.vitgoldcorp.com

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Victoria Gold Announces Execution of Definitive Documentation for the Eagle Financing Package and Closing of Equity and Royalty (First Tranche)

Victoria Gold Corp. (TSX:V-VIT) “Victoria” or the “Company” is pleased to announce that it has finalized and executed definitive transaction agreements with Orion Mine Finance (“Orion”), Osisko Gold Royalties Ltd (“Osisko”) and Caterpillar Financial Services Limited (“Cat Financial”) with respect to the previously announced construction financing package totalling approximately C$505 million in aggregate (the “Financing”) that will fully fund the development of the Eagle Gold project through to commercial production.

Victoria is also pleased to announce that the private placement subscriptions by each of Orion and Osisko have closed, and Victoria has issued 150,000,000 common shares to Orion and 100,000,000 common shares to Osisko at a price of C$0.50 per share for aggregate gross proceeds of C$125 million. Victoria also completed the issuance to Orion of 25,000,000 common share purchase warrants. All securities issued to Orion and Osisko under the private placement are subject to a four-month hold period expiring on August 13, 2018, pursuant to applicable securities legislation.

Additionally, pursuant to the royalty purchase agreement between Victoria, its wholly-owned subsidiary Stratagold Corporation and Osisko, Victoria has closed the first tranche of the royalty purchase for a price of C$49 million for total gross proceeds to Victoria of C$174 million including the private placements.

John McConnell, President & CEO, commented: “We are excited to have completed this comprehensive financing package for the construction of the Eagle Gold project. Together with our partners, we are now moving forward with the development of the most significant mining project in the Yukon to date. We look forward to building a high-quality, profitable, and environmentally safe project that will deliver significant economic benefit to all of our stakeholders.”

Chief Simon Mervyn, commented: “The First Nation of Nacho Nyak Dunn would like to congratulate Victoria on successfully securing project financing for the Eagle Gold project. We have worked with Victoria for many years establishing a mutually beneficial relationship and they have exemplified the ‘model’ for companies wishing to work in our Traditional Territory. Several of our citizens are already employed early in the construction phase and many of our business partners are delivering value via construction contracts including earthworks, camp maintenance, catering, fuel supply, concrete and tire supply for the main mining equipment.”

Premier Sandy Silver commented: “We are very pleased to see the Eagle Gold Project take this important step forward. Today’s announcement is great news for the territory and testament to the hard work of so many that have worked to make Yukon one of the world’s most attractive places to invest. I would like to congratulate all parties including the First Nation of Na-Cho Nyak Dunn and Victoria Gold for getting the project to this stage in the process.”

Transaction Details

In connection with the Financing, Victoria has (together, in certain cases, with its subsidiaries) entered into, with Orion:

  • a credit agreement with respect to a US$75 million (approximately C$96 million) senior secured credit facility;
  • a credit agreement with respect to a US$100 million (approximately C$128 million) subordinated secured credit facility;
  • a subscription agreement with respect to a private placement of 150,000,000 common shares of Victoria to Orion at a price of C$0.50 per share for gross proceeds of C$75 million;
  • a warrant certificate with respect to 25,000,000 common share purchase warrants issued to Orion, with each warrant entitling Orion to purchase one common share of Victoria at a price of C$0.625 per share for a period of five years;
  • a gold call option certificate with respect to options on 20,000 ounces of refined gold issued to Orion at a price of US$1,485 per ounce, with an exercise date of April 13, 2023; and
  • an offtake agreement entitling Orion to purchase 25% of the gold production from the Eagle Gold project on the terms set out therein.

Victoria has also (together, in certain cases, with its subsidiaries) entered into, with Osisko:

  • a royalty purchase agreement and royalty agreement with respect to the granting of a 5% net smelter return royalty (subject to reduction to 3% upon the achievement of certain output thresholds) to Osisko on the Dublin Gulch property (subject to certain exclusions), which includes the Eagle Gold project for an aggregate purchase price of C$98 million; and
  • a subscription agreement with respect to a private placement of 100,000,000 common shares of Victoria to Osisko at a price of C$0.50 per share for gross proceeds of C$50 million;

Separately, Victoria has also entered into, with Cat Financial, a master lease agreement with respect to a US$50 million equipment financing facility.

Funding of the remaining tranche of the royalty purchase, the senior and subordinated credit facilities, and the Cat Financial lease is subject to the satisfaction of certain conditions precedent, and completion of necessary steps to perfect the security interests in respect of the Orion credit facilities, Osisko royalty and Cat Financial equipment financing. The second tranche of C$49 million of the royalty purchase is to be funded pro rata to drawdowns under the subordinated debt component of the Orion credit facilities.

Following closing of the private placement common share subscriptions, Orion controls approximately 19% of Victoria’s common shares and Osisko controls approximately 16% of Victoria’s common shares, in each case on an undiluted basis, which includes shares previously held by Osisko in the Company. Additionally, each of Orion and Osisko have a right to nominate one member to Victoria’s board of directors, which nominations are expected to be announced in the coming weeks.

Auramet International and BMO Capital Markets acted as financial advisors to Victoria in connection with the Financing. Bennett Jones LLP and Cassels Brock LLP acted as Victoria’s legal counsel.

The completion of the Orion credit facilities, the Osisko royalty and the private placements to Osisko and Orion have been conditionally approved by the TSX Venture Exchange (“TSXV”). Final approval remains subject to satisfaction of the customary conditions of the TSXV.

About the Dublin Gulch Property

Victoria Gold’s 100%-owned Dublin Gulch gold property is situated in the central Yukon Territory, Canada, approximately 375 kilometres north of the capital city of Whitehorse, and approximately 85 kilometres from the village of Mayo. The Property is accessible by road year-round, and is located within Yukon Energy’s electrical grid.

The Property covers an area of approximately 555 square kilometres 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.

Qualified Person

The technical content of this news release has been reviewed and approved by Tony George, P.Eng., 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

This news release includes certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation, including statements regarding the Eagle Gold project being fully funded, the construction of the Eagle Gold project, satisfaction of conditions precedent with respect to the Orion credit facilities, Osisko royalty (second tranche), Orion offtake arrangements, Cat Financial equipment financing, intercreditor arrangements, security arrangements, completion and funding under the Orion credit facilities, Osisko royalty (second tranche) and Cat Financial equipment financing, projections regarding future production and production costs. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as “expect”, “plan”, “anticipate”, “project”, “target”, “potential”, “schedule”, “forecast”, “budget”, “estimate”, “intend” or “believe” and similar expressions or their negative connotations, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond Victoria’s control, including risks associated with the ability of Victoria to satisfy the conditions precedent for completion of the Orion credit facilities, Osisko royalty (second tranche), and Cat Financial equipment financing and to receive funding under them; the volatility of metal prices; risks and dangers inherent in exploration, development and mining activities; risks of not achieving construction and development timelines and estimates; uncertainty of mineral reserve and mineral resource estimates; the ability to obtain and maintain any necessary permits, consents or authorizations required for mining activities; risks related to environmental regulations or hazards and compliance with complex regulations associated with mining activities; risks related to remote operations and the availability of adequate infrastructure, fluctuations in price and availability of energy and other inputs necessary for construction development and ultimately mining operations; shortages or cost increases in necessary equipment, supplies and labour; regulatory risks; climate change risks; volatility of global financial conditions; risks related to reliance upon contractors and third parties; challenges to title or surface rights; dependence on key personnel; risks associated with conflicts of interest among the Company’s directors and officers; the risk of an uninsurable or uninsured loss; litigation risk; taxation, including changes in tax laws and interpretation of tax laws; community and aboriginal support for the Company’s operations including risks related to strikes and the halting of such operations, from time to time; as well as other factors identified and as described in more detail under the heading “Risk Factors” in Victoria’s most recent Annual Information Form and the Company’s other filings with Canadian securities regulators, which may be viewed at www.sedar.com.

The list is not exhaustive of the factors that may affect the Company’s forward-looking statements. There can be no assurance that such statements will prove to be accurate, and actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits or liabilities Victoria will derive therefrom. The Company’s forward-looking statements reflect current expectations regarding future events and operating performance and speak only as of the date hereof and except as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions should change other than as required by applicable law. For the reasons set forth above, undue reliance should not be placed on forward-looking statements.

For Further Information Contact:
John McConnell
President & CEO
Victoria Gold Corp
Tel: 416-866-8800
Fax: 416-866-8801
www.vitgoldcorp.com

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