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Mining Explorers 2011: Victoria Gold Corp.

 

Last updated 11/6/2011 at Noon



VIT: TSX-V

President and CEO: John McConnell

Vice President- Yukon: Mark Ayranto

Vice President- Exploration: Ted Wilton

Victoria Gold Corp., (formerly Victoria Resource Corp.), is a gold exploration company focused on advancing to production the Eagle Gold Deposit on its Dublin Gulch property in central Yukon Territory. Victoria also continues to explore key projects in the Yukon and Nevada to build on its current global mineral inventory of 7.7 million gold ounces.

Dublin Gulch, located near the town of Mayo about 375 kilometers (233 miles) north of Whitehorse, covers an area in excess of 400 square kilometers (154.4 square miles).

The Eagle deposit hosts a NI 43-101-compliant mineral resource of 4.8 million indicated ounces in 222 million metric tons ore averaging 0.68 g/t gold and 1.5 million inferred ounces in 78 million metric tons ore averaging 0.60 g/t gold.

A positive pre-feasibility study, using US$900 gold, was completed in early 2010 advising development of the deposit as an open-pit valley leach operation with average annual production of 170,000 ounces of gold at a total cash cost of about $500 per ounce with an initial capital cost of C$280 million, based on probable reserves of 1.75 million ounces gold.

Dublin Gulch also hosts the Mar tungsten deposit, which has an NI 43-101-compliant indicated resource of 86.2 million pounds of tungsten trioxide in 12.7 million metric tons grading 0.31 percent, using a 0.10 percent cutoff grade.

The deposit also boasts an inferred resource of 8.9 million pounds WO3 grading 0.30 percent.

In 2011, Victoria has worked to complete a feasibility study for the Eagle deposit and conducted a C$9 million exploration program, including diamond drilling, on the broader Dublin Gulch property where gold, silver, and base metal mineralization are present in numerous areas.

Victoria is currently seeking permits to develop the Eagle deposit and the feasibility study is expected to be completed in the fourth quarter.

In August, Victoria reported discover of the new Rex Peso silver and gold target at Dublin Gulch.

First-pass geologic mapping and rock-chip sampling uncovered widespread gold, silver, arsenic and antimony mineralization at Rex Peso, which is located about 4 kilometers (2.5 miles) west of the Eagle deposit.

Grab sampling (rock-chip) has returned significant gold, silver and trace element assays up to 1.8 grams per metric ton gold and 6,410 g/t silver.

The Rex Peso target appears to be a significant westerly extension to the Potato Hills mineral trend, which was delineated by the company more than a year ago.

Ongoing 2011 exploration drilling at Dublin Gulch, which is expected to continue through early December, is intersecting significant gold mineralization near the Eagle deposit and at other targets across the project area.

This work ranges from an early in-fill program in the Eagle deposit to "step-out" drilling of targets north of the Eagle deposit (Eagle North and Steiner) and continued exploration drilling of a mineralized area (Popeye) in the Potato Hills mineral trend that was first tested in 2010.

Reconnaissance-scale exploration is under way throughout the project area, and core drilling is in progress in the area of the Olive and Shamrock prospects, which are situated within the prospective Potato Hills Trend.

Victoria also signed a benefits agreement with the First Nation of Na-Cho Nyak Dun covering Eagle and ongoing exploration in the NND's traditional territory.

Cash and short-term deposits: C$18.36 million (at May 31, 2011)

Working capital: C$15.69 million (at May 31, 2011)

Market capitalization: C$149.59 million (Sept. 9, 2011)

Suite 303 - 80 Richmond St. West

Toronto, ON, Canada M5H 2A4

Tel: 416-866-8800 • Fax: 416-866-8801

 

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