PRECIOUS METALS

Victoria Gold points to higher output in 2021

Victoria Gold says improved material handling should see its new Eagle gold mine in Canada’s Yukon produce 180,000-200,000 ounces in 2021, its first full year of commercial production.

Staff reporter
 Victoria Gold says it’s set for a successful year at its Eagle mine in the Yukon

Victoria Gold says it’s set for a successful year at its Eagle mine in the Yukon

The guidance is below the 220,000oz estimated in an updated 2019 technical study and follows teething issues, which saw second half guidance in 2020 revised from 85,000-100,000oz to 72,000-77,000oz. 

The company produced 116,644oz in 2020, having declared commercial production on July 1. 

Victoria Gold put all-in sustaining cost guidance for 2021 at US$1,050-$1,175/oz of gold sold, well above the study's forecast $774/oz.

AISC for the second half of 2020 had been revised in November from $950-$1,100/oz to $1,175-$1,275/oz.

President and CEO John McConnell said achieving commercial production and operational ramp-up were major milestones for the company and completed while navigating the additional challenges brought by COVID-19.

"Since January 2021, and coincident with the seasonal no-stacking period, we have completed a significant maintenance and upgrade program within the Eagle crushing circuit and mobile stacking system which will improve material handling," he said.

"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."

The company is expected to release its 2020 financial results on March 22.

In the past year, its shares (TSXV: VGCX) have ranged from C$4.02 during the March pandemic slump on markets to $21.04 in August, as the gold price reached an all-time high above US$2,000/oz.

They closed down 2.4% yesterday to capitalise Victoria Gold at $683 million (US$538 million).

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