Victoria Gold Provides Update on ‚Project 250‘

“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 Person

The 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 Property

Victoria 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 Statements

This 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 McConnell
President & CEO
Victoria Gold Corp
Tel: 604-696-6605
ceo@vgcx.com