North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Victoria Gold Corp. June 17 reported that it has raised C$2.85 million through the sale of 4,384,615 flow-through common shares at C65 cents per share.

The company plans to use the money for a second phase of 2016 drilling focused on the Shamrock and other targets at its Dublin Gulch gold project in the Yukon Territory.

"This flow-through financing is the result of a combination of encouraging factors.

First and foremost, the 2016 exploration program at Olive and Shamrock has given us confidence that our geological model is accurate and Shamrock deserves a follow-up drill program immediately.

Furthermore, the first phase of drilling this year has been the most efficient drill program we have ever conducted at Dublin Gulch and that is expected to continue into phase 2.

Finally, the favorable premium we were able to secure on the financing allows for us to preserve our hard dollars while minimizing dilution," said Victoria Gold President and CEO John McConnell.

During the initial phase of 2016 drilling, Victoria invested C$3.6 million on a program primarily focused on connecting the Shamrock and Olive zones.

Highlights from the first 42 holes of the 89-hole program include: 45.8 meters grading 2.48 grams per metric ton gold and 46.7 meters averaging 1.45 g/t gold.

In a batch of results released on June 15, the company posted results for another 12 holes.

Highlights from this batch include: 35.1 meters averaging 1.7 g/t gold in hole DG16-686C and 106.1 meters of 0.94 g/t gold in DG16-700C. McConnell said Victoria will use the results "to develop a resource estimate for Olive that will feed into the feasibility study update currently underway for Eagle." A feasibility study completed in 2012 envisioned an open-pit mine and valley heap leach operation at Eagle Gold that would produce 192,000 ounces of gold annually for roughly nine years, based on probable reserves of 92 million metric tons averaging 0.78 grams per metric ton (2.3 million oz.) gold.

Overall, Eagle Gold hosts 222 million metric tons of indicated resource averaging 0.68 g/t (4.9 million oz.) gold, inclusive of probable reserves, and 78 million metric tons of inferred resources averaging 0.60 g/t (1.5 million oz.) gold.

The Olive-Shamrock zone is located about 2,000 meters from the Eagle Gold deposit.

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Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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