Eagle Gold Project
Victoria Gold Corp.
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The Eagle Gold Project is a fully-permitted, vein-hosted gold Project, located in central Yukon, Canada, 400 km north of Whitehorse, and 100% owned by Victoria Gold Corp. (VIT). The project consists of two conventional open pits (Eagle and Olive). VIT acquired the property in 2009 through the acquisition of StrataGold. In January 2011, VIT commissioned a team of engineering consultants to complete a Feasibility Study on the Eagle Gold Project, which was consequently published in Q2 2012. In early 2016, VIT announced the initiation of a Feasibility Study update for the Eagle Gold Project, to be led by JDS.
JDS Energy & Mining led and authored the FS, in conjunction with Merit Consultants, KCA, DOWL Engineering, Neil Brazier, Allnorth, and SRK Consulting (Canada) Inc.
The following project enhancements were delivered in the 2016 JDS FS:
-Improved economics using a lower gold price;
-Longer mine life from inclusion of ROM material and the addition of Olive Zone resources;
-Steepening of Eagle pit walls, resulting in an increase of ~10% more gold ounces produced over the LOM;
-Optimization of gold production model, resulting in accelerated gold recovery and earlier revenue generation;
-Replacement of valley-fill heap leach pad in Dublin Gulch by ridge-top design and addition of secondary pad, resulting in significant capital savings; and
-Compression of construction schedule to one year (15 months) due to heap leach re-design – significantly improving project economics.
Overall project economics were improved to an after-tax IRR of 29.5% and an NPV of $509 million.
JDS led the FS, evaluating opportunities for improved economics from the 2012 published FS. The optimized study resulted in a 30,000 tpd throughput rate, generating just under 2 million oz over the 10-year mine life. The economics showed a 13% increase in IRR, a ~$400M increase in NPV, and a 0.5 year reduction in payback period*.
*Pre-tax results, evaluated at a 5% discount rate.
Project Value: $1.3M