First Full Year Of Production From Yukon Project
Victoria Gold Corp. (TSX:VGCX) has unveiled production and cost guidance for 2021, the company’s first full year of commercial production at the Eagle Gold Mine in Yukon Territory, Canada.
President and CEO, John McConnell, said the company forecast gold production of between 180,000 and 200,000 ounces, at All-In Sustaining Costs (AISC) of between US$1,050 and US$1,175 per ounce.
“Successful achievement of commercial production and operational ramp up were major milestones for Victoria in 2020 and were completed while navigating the additional challenges brought on by COVID-19,” Mr McConnell said.
“Since January 2021, and coincident with the seasonal no stacking period, we have completed a significant maintenance and upgrade programme within the Eagle crushing circuit and mobile stacking system which will improve material handling.
“With this work complete, we are set up for a successful 2021 and significant increases in gold production, coupled with decreased operating costs and strong free cash flow.”
Mr McConnell said mining, crushing and ore stacking on the heap leach pad are all expected to operate at full capacity during 2021 while gold production, which lags mining and stacking activities in heap leach operations, will continue to build up through the first half of 2021 reaching full capacity in the second half of 2021.
Gold production will be strongly weighted to the second half of the year due to the seasonal stacking of ore on the Eagle leach pad, which is curtailed for the 90 coldest days of the year, January through March. During this no stacking period, mining operations, primary crushing and stockpiling of ore continues with ongoing leaching and gold production. Subject to favourable weather conditions ore stacking may be resumed ahead of schedule.
Sustaining capital is estimated at US$47 million for 2021. Sustaining capital will be high in 2021 compared with future years due to one-time infrastructure expenditures including construction of the truck shop (US$8 million) and water treatment plant (US$11 million).
Exploration spending in 2021 is estimated to be US$8 million and is considered growth capital.
Meanwhile, a mine optimisation programme, along with a winter maintenance programme have been completed and all systems are ready for the full resumption of operations later this month.