Toronto, ON / December 7, 2015 / Victoria Gold Corp. (TSX.V-VIT) "Victoria" or the "Company" is pleased to announce that it has received the final Water Use License allowing for the construction, operation and closure of Victoria's flagship Eagle Gold Project ("Eagle"), Yukon.
Victoria's Eagle Gold Project, a proposed open-pit heap leach mine projected to produce approximately 200,000 ozs of gold annually, has now been granted all major permits required to construct, operate and close the project. Victoria's application to support the Environmental Assessment was submitted in December 2010. Since that time, Victoria has completed the Environmental Assessment (in April 2013), received a Quartz Mining License (in September 2014), received a Water Use License for construction (in February 2015) and, as announced herein, received a Water Use License for operations and closure. This completes the major mining permits required to advance Eagle through construction and operations.
"With the final Water Use License in hand, Eagle represents a truly unique asset, being a fully permitted gold project, with First Nation support, located in Canada, capable of significant annual gold production exceeding 200,000 ozs at a low all-in-sustaining cost," said John McConnell, President & CEO. Eagle's low cost of production is expected to be achievable due to a number of factors including: a low strip ratio; short mine haul distances and superior infrastructure including existing yearround road access; close proximity to the Yukon electrical grid; nearby commercial airstrip; and an existing construction camp.
The final Water Use License application process culminated in a weeklong public hearing in June 2015. During the hearing the Water Board Chair stated, "... out of many of the companies or applicants that come before this Board, I think you [Victoria] are remarkable for having had with you -- for the duration so far -- virtually the same team. You've put together an 'A' team, and that, in turn, has led to your preparation of what -- in our opinion -- is a very, very good submission, and that goes a long way to assisting the entire application process. It also goes a long way to giving evidence of the trust that exists between yourselves -- as the applicant -- and the people in this community, and larger, the people in the Yukon Territory. So, congratulations, you've done a remarkably good job in bringing your team together and providing a good application. That's going to stand you well as you move forward."
Victoria would like to thank the First Nation of Nacho Nyak Dun for their participation in the Water Use License application and on-going partnership through our Comprehensive Cooperation Benefits Agreement, the Water Board and Water Board Secretariat, the Yukon Government and all interveners who participated in this process to ensure the Eagle Gold Project has been rigorously reviewed and determined to be a project that should proceed to the benefit of all Yukoners.
The technical content of this news release has been reviewed and approved by Paul D. Gray, P.Geo., as the Qualified Person.
About the Dublin Gulch Project
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 100 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 Deposit is expected to be Yukon's next operating gold mine and includes Probable Reserves of 2.3 million ozs of gold from 92 million tonnes of ore with a grade of 0.78 grams of gold per tonne, as outlined in a National Instrument 43-101 definitive feasibility study. The NI 43-101 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. The Company has a Comprehensive Benefits Agreement in place with the local First Nations community and is in receipt of all major permits required for the construction, operation and closure of the Eagle Gold Mine.
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