Transformative Time For Canadian Company
Victoria Gold Corp. (TSX-VGCX) has announced its results for the third quarter ended September 30, 2020 – the company’s first quarter of Commercial Production.
“These inaugural financial statements under Commercial Production show the very early returns from many years, of dedicated work, conviction and investment,” President and CEO, John McConnell, said.
“These transformative efforts have set Victoria Gold and its stakeholders up to begin reaping great benefit from all of the past and continuing efforts.
“Aside from the usual teething issues and learning curve experiences common to all start-ups, we are very pleased with our progress as we have moved in to and beyond Commercial Production and remain highly confident the best is yet to come over a very long mine life.”
• Achieved Commercial Production at Eagle Gold Mine on July 1, 2020.
• Mine production in the quarter was 2.1 million tonnes of ore.
• Ore stacked on the heap leach pad in the quarter was 1.9 million tonnes at an average grade of 0.85 grams per tonne (g/t).
• Gold production was 35,312 ounces in the quarter.
Financial Highlights (Commercial Production)
• Gold sold in the quarter was 32,029 ounces, at an average realized price1 of C$2,512 (US$1,886) per oz.
• Recognised revenue of C$80.5 million, based on sales of 32,029 ounces of gold in the quarter.
• Operating Earnings were C$31.6 million for the quarter.
During the three months ended September 30, 2020, the Eagle Gold Mine produced 35,312 ounces of gold. During the three months ended September 30, 2020, the company sold 32,029 ounces of gold.
During the three months ended September 30, 2020, a total of 2.1 million tonnes of ore were mined, at a strip ratio of 2.1:1 with a total 6.5 million tonnes material mined.
Mining and processing activities continued to ramp up toward full production during the third quarter of 2020.
Total tonnes mined were above forecast while ore mined was lower than forecast due to bottlenecks being resolved within the processing circuit. This allowed the mine to utilise available resources to advance waste stripping to ease future ore release requirements.
During the three months ended September 30, 2020, a total of 1.9 million tonnes of ore was stacked on the heap leach pad at an average head grade of 0.85 g/t Au. The throughput rate was 20.8 k tonnes per day.
Tonnes stacked on the heap leach pad increased during Q3 2020, however, total tonnes stacked and resultant gold production was lower than forecast. Importantly, both gold grade and metallurgical recoveries are reconciling well against the Eagle reserve model and a significant gold inventory is building on the heap leach pad.
A number of improvements related to material handling within the process circuit were completed, or are in progress, during the quarter. These corrective measures are significantly improving reliability and, in turn, will improve ore stacking and gold production going forward.