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Eagle shows depth potential

Emerging developer Victoria Gold’s (CN:VIT) is encouraged by the pit expansion potential from the latest, deepest drilling at its Eagle Gold project in Yukon where one hole hit 607.8m grading 0.56g/t gold from 47.2m.
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Victoria Gold plans to build Yukon’s next gold mine

Staff reporter

The results are in line with assays announced earlier this month from the four-hole programme that included 624.1m at 0.5g/t gold from surface.

President and CEO John McConnell said the Eagle Deep campaign had demonstrated strong continuity of mineralisation below the Eagle reserve and resource pits.

"We are greatly encouraged by the higher than average gold grades observed at depth, particularly given the low strip ratio of the Eagle pit which bodes well for future pit expansion potential and extended mine life," he said.

The company hopes Eagle Gold will be Yukon's next operating gold mine. It contains a 2.7 million ounce reserve at 0.67g/t between the Eagle and Olive deposits.

Early stage earthworks are underway with a view to starting mine construction in 2018.

The company appointed BNP Paribas in January to arrange up to US$220 million of senior, secured project debt to account for the bulk of the cost of getting into production.

Shares in the company closed 1c lower yesterday at C$0.51 and have fallen 8.9% year-to-date.