September 22, 2013, Toronto: Victoria Gold Corp. (VIT.TSX-V) ("Victoria" or the "Company") is pleased to announce the receipt of the Quartz Mining License for its Eagle Gold Project.
Quartz Mining License
The Yukon Government Department of Energy, Mines & Resources ("EMR") has issued a Quartz Mining License ("QML") for the Eagle Gold Project. The QML is the definitive operating license to build and operate the Eagle mine in Yukon. Receipt of the QML is the culmination of a 3 year permitting and environmental assessment process which included submission of a Project Proposal in December 2010 and approval of the environmental assessment in April 2013.
"We are highly encouraged by this major milestone as we work to advance the Eagle Gold Mine. With the granting of the QML, Eagle is now one of the few major gold projects in the world in a first class jurisdiction that is shovel ready, pending financing." said Victoria Gold Corp President and CEO John McConnell, "Victoria is committed to the Yukon and we are very pleased to move forward and have the territorial government's support."
The Quartz Mining License places Victoria in a position to start construction and undertake major earthworks and infrastructure construction. Water related construction activities can proceed through the amendment of an existing Water Use License. The amendment application is expected to be filed before the end of 2013 with receipt of the amended license expected in 2014. In addition to amending the existing Water Use License for construction, Victoria will be applying for a new Water Use License to support operations at Eagle. Victoria anticipates filing this application in the first half of 2014 and receiving the Water Use License required for operations in 2015.
Engineering & Construction Management
Victoria has engaged Merit Consultants to undertake construction management of the Eagle Gold Project. Merit was involved in the Eagle Feasibility Study and is very familiar with the project. Merit has substantial experience in the north and with heap leach development, most recently completing construction management of Kinross' Fort Knox heap leach construction.
Detailed engineering by M3 Engineering remains underway with a current focus on site earthworks and engineering to support permitting and major on-site construction. Tetra-tech has recently completed the heap leach design.
This summer, the Yukon Government Department of Highways and Public Works replaced the Haldane Creek bridge along the access road to Eagle. This replacement brings the bridge up to highway standards and will facilitate construction access. In addition, the government has committed $100,000 towards road upgrades, specifically, improved drainage and road grading. This work is currently underway and expected to be completed over the next several weeks.
Victoria Gold is an emerging gold producer whose flagship asset is its 100% owned Dublin Gulch property which hosts the Eagle Gold Deposit. Dublin Gulch is situated in the central Yukon, Canada, approximately 375 kilometers north of the capital city of Whitehorse. The property covers an area of approximately 650 square kilometers, is accessible by road year-round and is located within Yukon Energy Corporation's electrical grid.
The Eagle Gold Project is expected to be Yukon's next operating gold mine and includes Probable Reserves of 2.3 million ozs of gold contained in 92 million tonnes of ore with a grade of 0.78 grams of gold per tonne, as outlined in a National Instrument 43-101 Compliant Feasibility Study. The NI 43-101 Compliant Mineral Resource has been estimated to host 222 million tonnes averaging 0.68 grams of gold per tonne, containing 4.9 million ounces of gold in the "Indicated" category, inclusive of Probable Reserves, and a further 78 million tonnes averaging 0.60 grams of gold per tonne, containing 1.5 million ounces of gold in the "Inferred" category.
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:
President & CEO
Victoria Gold Corp