Construction is underway at Victoria’s Gold’s Eagle open pit gold project in the Yukon, and the project is expected to pour first gold in the second half of 2019.
The Eagle project has been shovel ready for some time, BUT it wasn’t until March 2018 that the junior announced a financing deal to build it. Victoria has arranged the funding from several partners – Orion Mine Finance (in the form of debt facilities), Osisko Gold Royalties (a streaming agreement) and Cat Financial (an equipment leasing facility). The cost to build a three-stage crushing plant, in-valley heap leach and carbon-in-leach recovery plant has been pegged at $500 million.
Victoria expects the mine to produce 200,000 oz. of gold annually with a mining rate of 33,700 t/d. The all-in sustaining cost is US$638 per oz., making the Eagle project a low cost producer over a projected 11-year life. The feasibility study used a gold price of US$1,250 per oz. That gives the project an after-tax net present value of $508 million (with a 5% discount rate) and an internal rate of return of 29.5%. The payback period after tax is 2.8 years.
The Eagle and the nearby Olive deposits have proven and probable reserves of 2.7 million oz. of gold contained in 123 million tonnes grading 0.67 g/t gold. Measured and indicated resources inclusive of reserves total 4 million oz. gold contained in 191 million tonnes averaging 0.65 g/t gold. A further inferred resource of 500,000 oz. gold is hosted in 24 million tonnes of material grading 0.61 g/t gold.
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