Victoria Gold Corp. (TSX-VGCX) (“Victoria” or the “Company”) has
completed a Scoping Study designed to assess the potential
incorporation of an intermediate scalping screen into the process
flow sheet which will serve to bypass fine ore material from the
crushing circuit directly to the heap leach pad. The results of
this study demonstrate an increase to design throughput of the
crushing circuit by approximately 15%, thereby increasing potential
annual ore stacking on the heap leach pad by approximately 1.5
million tonnes. This Scoping Study was completed in support of
Project 250 whose aim is to increase annual Eagle gold production
to 250,000 ounces during 2023.
“Project 250 represents a significant near-term,
low cost opportunity to increase annual gold production at Eagle.”
stated John McConnell, President & CEO. “The team continues to
drive further opportunities to increase value. I am confident
Project 250 will produce material benefits for all our
stakeholders.”
Early operations at the Eagle Gold Mine have
experienced a higher percentage of fine ore material in the run of
mine (“ROM”) particle size distribution (“PSD”) than the original
design parameters contemplated. As such, the secondary/tertiary
fine ore fraction has been higher than expected. The installation
of a scalping screen system will serve to bypass ore
fines prior to the tertiary crushing circuit and direct this
material to the heap leach facility, which is expected to have a
positive impact on the entire crushing facility productivity and
throughput.
Project 250 targets improvements to the overall
efficiency of the Eagle Gold Mine processing and material handling
facilities through the elimination of unnecessary recycling of fine
ore material that is more suitable to direct delivery to the heap
leach pad. This study has identified the required equipment,
location thereof and requisite modifications to the existing
process layout coupled with capital and operating cost estimates in
addition to timelines to effectively execute the engineering and
installation.
The scalping screen facility will be located
just north of the current fine crushing plant. Fines will be
scalped after secondary and prior to tertiary screening and
crushing. The chosen location and layout allows for the
construction of the screening facility without interrupting the
operations through tie-in of two existing conveyors which will
result in minimal downtime to commission the facility once
constructed.
The selected layout and equipment selection was
based on industry standard Bruno simulations with alignment of
existing Eagle Gold Mine plant equipment. The screen selected is a
Mesto MF-4285-2 double deck multi-slope (banana) screen, identical
to the tertiary screens currently utilized at the Eagle Gold Mine.
Similarly, the conveyor components, idlers, belting and drives were
selected to duplicate the current conveyors; the drives for the new
conveyors are however unique. A 6,000 cubic feet per minute dust
collector with attendant fans and ducting provides dust collection
from the various transfer points and chutes. Dust from the
collector hopper is directed to a mixer system which agglomerates
the dust prior to discharge to the fines transfer conveyor and then
out to the leach pad. An installed 10/25 tonne overhead crane will
allow for all screen and related maintenance.
The capital cost estimate of approximately
C$18 million includes direct costs for equipment and bulks as
well as engineering, procurement and construction, indirect spares,
commissioning, freight inclusive of contingency. The operating
cost, based on 14 million tonnes being processed per year, is
C$0.04 per tonne. The scalping screen facility is expected to
increase annual gold production by approximately 15%.
As per the recommendations of the Scoping Study,
detailed engineering and procurement of equipment is underway to
enable construction to start in Q2 of 2022. Construction is
expected to be completed by the end of 2022. The Scoping Study
report is available on Victoria’s website.
In addition to the scalping screen facility,
Project 250 contemplates year round stacking of the heap leach pad
which will extend the overall stacking schedule from nine to eleven
months a year. Stacking eleven months a year will allow for an
annual four week maintenance shutdown of the crushing circuit. Year
round stacking requires the addition of two 785 haul trucks and a
loader.
Qualified PersonThe technical
content of this news release has been reviewed and approved by Paul
D. Gray, P.Geo., as the “Qualified Person” as defined in National
Instrument 43-101 - Standards of Disclosure for Mineral
Projects.
About the Dublin Gulch
PropertyVictoria Gold's 100%-owned Dublin Gulch gold
property (the “Property”) is situated in 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 and Olive
Gold Deposits. The Eagle Gold Mine is Yukon's newest operating gold
mine. The Eagle and Olive deposits include Proven and Probable
Reserves of 3.3 million ounces of gold from 155 million tonnes of
ore with a grade of 0.65 grams of gold per tonne, as outlined in a
National Instrument 43-101 Technical Report for the Eagle Gold Mine
dated December 3, 2019. The Mineral Resource under National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
(“NI 43-101”) for the Eagle and Olive deposits has been estimated
to host 227 million tonnes averaging 0.67 grams of gold per tonne,
containing 4.7 million ounces of gold in the "Measured and
Indicated" category, inclusive of Proven and Probable Reserves, and
a further 28 million tonnes averaging 0.65 grams of gold per tonne,
containing 0.6 million ounces of gold in the "Inferred"
category.
Cautionary Language and Forward-Looking
StatementsThis press release includes certain statements
that may be deemed "forward-looking statements". Except for
statements of historical fact relating to Victoria, information
contained herein constitutes forward-looking information, including
any information related to Victoria's strategy, plans or future
financial or operating performance. Forward-looking information is
characterized by words such as “plan”, “expect”, “budget”,
“target”, “project”, “intend”, “believe”, “anticipate”, “estimate”
and other similar words, or statements that certain events or
conditions “may”, “will”, “could” or “should” occur, and includes
any guidance and forecasts set out herein (including, but not
limited to, production and operational guidance of the
Corporation). In order to give such forward-looking information,
the Corporation has made certain assumptions about the its
business, operations, the economy and the mineral exploration
industry in general, in particular in light of the impact of the
novel coronavirus and the COVID-19 disease (“COVID-19”) on each of
the foregoing. In this respect, the Corporation has assumed that
production levels will remain consistent with management’s
expectations, contracted parties provide goods and services on
agreed timeframes, equipment works as anticipated, required
regulatory approvals are received, no unusual geological or
technical problems occur, no material adverse change in the price
of gold occurs and no significant events occur outside of the
Corporation's normal course of business. Forward-looking
information is based on the opinions, assumptions and estimates of
management considered reasonable at the date the statements are
made, and are inherently subject to a variety of risks and
uncertainties and other known and unknown factors that could cause
actual events or results to differ materially from those described
in, or implied by, the forward-looking information. These factors
include the impact of general business and economic conditions,
risks related to COVID-19 on the Company, global liquidity and
credit availability on the timing of cash flows and the values of
assets and liabilities based on projected future conditions,
anticipated metal production, fluctuating metal prices, currency
exchange rates, estimated ore grades, possible variations in ore
grade or recovery rates, changes in accounting policies, changes in
Victoria's corporate resources, changes in project parameters as
plans continue to be refined, changes in development and production
time frames, the possibility of cost overruns or unanticipated
costs and expenses, uncertainty of mineral reserve and mineral
resource estimates, higher prices for fuel, steel, power, labour
and other consumables contributing to higher costs and general
risks of the mining industry, failure of plant, equipment or
processes to operate as anticipated, final pricing for metal sales,
unanticipated results of future studies, seasonality and
unanticipated weather changes, costs and timing of the development
of new deposits, success of exploration activities, requirements
for additional capital, permitting time lines, government
regulation of mining operations, environmental risks, unanticipated
reclamation expenses, title disputes or claims, limitations on
insurance coverage and timing and possible outcomes of pending
litigation and labour disputes, risks related to remote operations
and the availability of adequate infrastructure, fluctuations in
price and availability of energy and other inputs necessary for
mining operations. Although Victoria has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in, or implied
by, the forward-looking information, there may be other factors
that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. The reader is cautioned not to
place undue reliance on forward-looking information. The
forward-looking information contained herein is presented for the
purpose of assisting investors in understanding Victoria's expected
financial and operational performance and Victoria's plans and
objectives and may not be appropriate for other purposes. All
forward-looking information contained herein is given as of the
date hereof, as the case may be, and is based upon the opinions and
estimates of management and information available to management of
the Corporation as at the date hereof. The Corporation undertakes
no obligation to update or revise the forward-looking information
contained herein and the documents incorporated by reference
herein, whether as a result of new information, future events or
otherwise, except as required by applicable laws.
For Further Information
Contact:John McConnellPresident & CEOVictoria Gold
CorpTel: 604-696-6605ceo@vgcx.com
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