PRECIOUS METALS

Victoria Gold withdraws production, cost guidance

Victoria Gold has withdrawn its 2022 production and cost guidance because of conveyor belt issues at its Eagle Gold mine in the central Yukon Territory, Canada, and its share price has dropped 9% to close trading on 5 October at C$7.68 (US$5.65).

No run of mine ore tonnes were hauled directly from the open pit to the heap leach facility in Q3, which compares to a total of 1.1 million tonnes RON in the same quarter last year.

No run of mine ore tonnes were hauled directly from the open pit to the heap leach facility in Q3, which compares to a total of 1.1 million tonnes RON in the same quarter last year.

It's expected that it'll take another two or three weeks for the issues to be resolved.

"The Company had previously expected full-year 2022 production to be close to the lower end of the guidance range of 165,000 ounces. If not for the conveyor belt failure, the mine was on track to meet guidance," the company said.

The top end of the guidance had been 190,000oz. Eagle is the company's only mine in production.

"Due to the estimated length of time required to replace the overland conveyor belt, the Company anticipates it will no longer achieve production or cost guidance," it said.

Before being withdrawn, all-in sustaining cost guidance was US$1,225 and US$1,425 per oz of gold sold.

The company produced 50,028oz of gold in Q3, which is down from 55,827oz from the same period last year.

The 1.5 kilometre overland conveyor that links and delivers ore from the crushing plant to the heap leach facility experienced a slice failure of the main belt on 29 September.

No run of mine ore tonnes were hauled directly from the open pit to the heap leach facility in Q3, which compares to a total of 1.1 million tonnes RON in the same quarter last year.

"After review of the overall condition of the belting, it has been determined that the best course of action is to replace, rather than repair, the belting," the company said.

"Due to the length of the belt and number of sections to be spliced, it is anticipated that crushing, conveying and stacking operations will be down between two to three weeks.

"During this temporary outage, opportune maintenance on the crushing circuits will be performed. Mining and ADR plant operations are not impacted and continue to perform normally," it said.

Victoria plans to provide updated guidance following full resumption of operations.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.