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EDISON EQUITY RESEARCH: VICTORIA GOLD - EAGLE ENHANCED BY OLIVE

Victoria Gold looks to develop its wholly owned Eagle Gold Project, in the Yukon, Canada. With permitting in place and a feasibility study completed, the next step is to finance the required C$430m to develop the mine. Eagle has a currently defined 10-year LOM heap leach project, starting in early CY18 (under our assumptions), producing an average of 195kozpa (after ramp up). Our undiluted base case valuation is C$0.63/share (at a 10% discount rate and Edison assumed gold prices), potentially increasing to C$1.08 based on full crushing plant utilisation and assuming higher head grades delivered from the nearby Olive project. We await metallurgical results and an NI 43-101 resource for Olive to support this upside valuation.

The Eagle Gold Project, Victoria Gold’s flagship project, is located in the 100%-owned Dublin Gulch property in the Yukon Territory, Canada. Victoria Gold also intends to explore its other claims while developing Eagle and is looking to monetise its Santa Fe project in Nevada, US.

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