Bankable And Soon To Be Banked
Victoria Prepares its Yukon Eagle Gold Project for April 2013 Construction
Kevin Michael Grace

December 13, 2012 - Victoria Gold Corp V.VIT announced November 27 it had signed a binding terms sheet to sell its interest in the Big Springs Gold Property in Elko County, Nevada, for US$6 million to MRG Copper LLC, a US subsidiary of Big Springs Project Pty Ltd, which is concurrently being acquired by Kimberley Rare Earths Ltd. The transaction will close in February 2013, subject to completion of due diligence.

The sale provides funds for the advancement of Victoria’s Eagle Gold Project, which is contained with its Dublin Gulch property, which is located 375 kilometres north of Whitehorse, Yukon, and scheduled to begin production in 2015. According to a February 2012 43-101 feasibility study, Eagle contains 91.6 million tonnes grading 0.78 grams per tonne gold for a resource of 2.3 million ounces proven and probable. The indicated resource is 4.86 million ounces, and the inferred resource is 1.49 million ounces. The study forecast annual production of 192,000 gold ounces for 12 years at a cost of $542 per ounce. The initial CAPEX (including prestripping) is $399.7 million, while life-of-mine sustaining capital costs are $132.9 million, and closure costs (net of salvage value) are $64.2 million. Based on $1,325-per-ounce gold, the project has a pretax net present value (NPV) of $380.8 million (at a 5% discount rate), a 24.1% internal rate of return (IRR) and a payback period of 3.1 years.

On October 29, Victoria Gold announced assays from six drillholes on the Olive target, located 2.5 kilometres from Eagle. Highlights include

1.72 grams per gold over 7.37 metres
1.44 g/t gold over 7.81 metres
1.06 g/t gold over 6.11 metres
2.11 g/t gold over 4.3 metres
2.56 g/t gold over 10.11 metres
(including 8.09 g/t gold over 1.43 metres)
3.28 g/t gold over 4.6 metres
3.12 g/t gold over 6.4 metres

President/CEO John McConnell spoke to Kevin Michael Grace December 11 - read that interview here.