Toronto, ON / April 7, 2016 / Victoria Gold Corp. (TSX.V-VIT) "Victoria" or the "Company" is pleased to announce that a Feasibility Study ("FS") update has been initiated for the fully permitted Eagle Gold project, Yukon.
Victoria has engaged JDS Energy and Mining Inc. ("JDS") to lead the FS update with support from Merit Consultants International, Allnorth and certain key independent consultants. The FS is expected to be completed Q3 2016.
The current FS for Eagle is based on inputs from Q4 2011. In the past 18 months, there have been several key project elements that have materially and positively changed. Most notably, with the recent receipt of a Water Use License, Eagle is now fully permitted. Other changes include a weaker Canadian dollar, lower fuel costs, lower equipment costs and an improved labour environment to attract key personnel.
In addition to updating the FS to reflect current cost assumptions, there are a number of project improvements that will be investigated including: incorporating the Olive zone into the mine plan, adding a second heap leach pad to accommodate lower grade run-of-mine ore and examining capital cost savings.
"We are very pleased to have JDS lead the FS update. Their expertise in engineering and building projects in Canada's north and 'fit for purpose' designs will benefit the Eagle project." stated John McConnell, President & CEO. "Being fully permitted, Eagle is a rare asset and optimization in key areas will further enhance the current robust economics".
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 Property and the Eagle Gold 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 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 Olive-Shamrock target Olive lies 2 km from the proposed infrastructure at the Eagle Gold Project, along the Potato Hills Trend. Importantly, drilling and surface trench results to date indicate the existence of near-surface, high-grade potential feed into Eagle operations. (see New Releases dated May 20, June 24, July 28, August 13, and Nov 4, 2014). Metallurgical testing completed in 2015 (see New Releases dated February 24, and August 7, 2015) has indicated that the high-grade Olive-Shamrock Zone is amenable to Eagle Project heap leach recovery at the same crush size as Eagle Project feed.
About JDS Energy & Mining Inc.
JDS Energy & Mining Inc. is a BC based engineering and mine construction company, delivering engineering, construction and procurement. They are an established northern Canadian mine builder having constructed Minto copper-gold open pit mine in Yukon, Gahcho Kue Mine in NWT and are currently constructing the Silvertip Mine in Northern BC.
About Merit Consultants
Merit Consultants International is a BC based company providing a full range of Project and Construction Management Services to the mining industry from the study stages through plant construction and commissioning. Merit managed the construction of the Copper Mountain facilities; managed the Harper Creek 70,000 tpd FS; and is currently working on the Twin Metals 20,000 tpd copper FS in Minnesota. In late 2015, Merit was acquired by Cementation Canada Inc., a member of the Murray & Roberts group of companies.
Allnorth is a BC based company providing diversified engineering and technical services. Allnorth offers a range of services that encompass all phases of a mine's life cycle, including prefeasibility and feasibility studies, environmental assessment and permitting, detailed engineering of onsite and offsite infrastructure, construction management and site closure and reclamation.
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