VANCOUVER – Victoria Gold Corp. [VGCX-TSX] said its flagship Eagle Gold Mine in the Canadian Yukon produced a record 20,744 ounces of gold during the month of August, 2021, marking a 65% increase compared to the same period last year.
Victoria Gold shares advanced on the news, rising 5.0% or 76 cents to $16.41 on volume of 115.400. The shares are trading in a 52-week range of $22.54 and $10.42.
The company also said it is setting up for a strong third quarter operational performance after stacking one million tonnes of ore on the leach pad in each of July and August (2021), the company said in a corporate update that has been released ahead of the Denver Gold Forum.
The update also contains details of ongoing exploration around the mine site.
The Victoria Gold mine is situated on the Dublin Gulch gold property in the central Yukon Territory, about 375 kilometres north of Whitehorse and approximately 85 kilometres from the town of Mayo.
Covering 555 square kilometer, Dublin Gulch hosts the Eagle and Olive gold deposits, which contain proven and probable reserves of 3.3 million ounces of gold, with a grade of 0.65 g/t.
Victoria Gold said its 2021 mineral exploration campaign continues at full capacity with a threefold focus. That includes a focus on two on/near surface high-grade gold targets at Raven and Lynx, as well as the past-producing Rex-Peso high-grade silver target located just west of the Eagle Gold Mine.
The planned 15,000-metre 2021 program is primarily concentrated on Raven, where over 6,500 metres of drilling has already been completed. At Raven, step-out drilling has tested over one kilometre of the prospective high-grade gold trend. In addition, four holes were collared at a newly-identified intrusion-related mineralized zone, Whiskey Wrinkles, located halfway between the Raven and Lynx zones.
At Lynx, a systematic surface trench program opened in the 2021 season with subsequent geological mapping and sampling across the 600 metres of defined anomalous gold mineralized trend. So far, over 1,700 metres of drilling has been completed from eight holes of a planned 14-hole, 2,500-metre program
The Rex-Peso diamond drilling program commended in mid-July and consists of one dedicated diamond drill rig that is targeting the high-grade silver veins that are known to exist just west of Eagle.
The company said these veins were mined by previous operators in the 1960s, with only limited exploration conducted beyond the footprint of the underground workings. To date, 12 holes have been completed along the Rex vein for a total of 2,100 metres.
Results from this season’s campaign are expected shortly and will continue to arrive in the late fourth quarter of 2021.
Victoria Gold recently said it produced 58,899 ounces of gold during the first half of 2021. It said gold production this year will be heavily weighted to the second half of 2021. Therefore, it expects the mine to produce between 180,000 and 200,000 ounces of gold this year, including 120,000 ounces during the second half of 2021.
Based on first half production, current stacking and forecasted production, the company has said it expects full-year production this year to be towards the lower end of its guidance range.