Victoria Gold provides an update on “Project 250”

WHITEHORSE, Yukon, Jan. 17, 2022 (GLOBE NEWSWIRE) — Victoria Gold Corp. (TSX-VGCX) (“Victoria” or the “Company”) has completed a scoping study designed to assess the potential incorporation of an intermediate scalping screen into the flowsheet that will be used to divert fine ore from the crushing circuit directly to the heap leach pad. The results of this study demonstrate an increase in the design throughput of the crushing circuit by approximately 15%, thereby increasing the potential annual ore stockpile on the heap leach pad by approximately 1.5 million tonnes. This exploratory study was carried out in support of Project 250, the objective of which is to increase Eagle’s annual gold production to 250,000 ounces by 2023.

“The 250 project represents a significant near-term, low-cost opportunity to increase annual gold production at Eagle.” said John McConnell, President and CEO. “The team continues to generate new opportunities to increase value. I am confident that Project 250 will produce material benefits for all of our stakeholders.”

Early operations at the Eagle Gold Mine experienced a higher percentage of fine ore in the grade distribution (“PSD”) of run-of-mine (“ROM”) than the original design parameters envisioned. Thus, the fraction of secondary/tertiary fine ore was higher than expected. The installation of a scalper screening system will serve to bypass ore fines before the tertiary crushing circuit and direct this material to the heap leach facility, which should have a positive impact on productivity and throughput. of the entire crushing plant.

Project 250 aims to improve the overall efficiency of the Eagle Gold Mine processing and handling facilities by eliminating unnecessary recycling of fine ore that is more suitable for direct delivery to the heap leach pad. This study identified the required equipment, its location, and required modifications to the existing process layout, as well as capital and operating cost estimates in addition to time to effectively execute the engineering and installation.

The scalper screening facility will be located just north of the existing fine crushing plant. Fines will be scalped after secondary screening and before tertiary screening and crushing. The chosen location and layout allows for the construction of the screening plant without interrupting operations through the connection of two existing conveyors, which will result in minimal downtime for the commissioning of the plant once built.

The selected equipment layout and selection was based on industry standard Bruno simulations with alignment of existing Eagle Gold Mine plant equipment. The screen selected is a Mesto MF-4285-2 double deck multi-pitch (banana) screen, identical to the tertiary screens currently used at the Eagle Gold Mine. Likewise, conveyor components, rollers, belts and drives have been selected to duplicate current conveyors; however, the drives of the new conveyors are unique. A 6,000 cubic feet per minute dust collector with fans and auxiliary ducts provides dust collection from the various transfer points and chutes. Dust from the collection hopper is directed to a mixer system which agglomerates the dust before discharging it to the fines transfer conveyor and then to the leach pad. A 10/25 ton overhead crane installed will allow for all screens and related maintenance.

The capital cost estimate of approximately C$18 million includes direct costs for equipment and bulks as well as engineering, procurement and construction, indirect spares, commissioning, freight, including contingencies. The operating cost, based on 14 million tonnes processed per year, is C$0.04 per tonne. The scalper screening facility is expected to increase annual gold production by approximately 15%.

In line with the scoping study recommendations, detailed engineering and equipment procurement is underway to enable construction to start in the second quarter of 2022. Construction is expected to be completed by the end of 2022. The scoping study report is available on the Victoria website.

In addition to the scalper screening facility, Project 250 envisions year-round stockpiling of the heap leach pad, which will extend the overall stockpiling schedule from nine to eleven months per year. Stacking eleven months a year will allow for an annual four-week maintenance shutdown of the crushing circuit. Year-round stacking requires the addition of two 785 haul trucks and a loader.

Qualified person
The technical content of this press release has been reviewed and approved by Paul D. Gray, P.Geo., as a “qualified person” as defined in National Instrument 43-101 – Disclosure standards for mining projects.

About the Dublin Gulch Property
Victoria Gold’s 100% owned Dublin Gulch Gold Property (the “Property”) is located in central Yukon Territory, Canada, approximately 375 kilometers north of the capital city of Whitehorse and approximately 85 kilometers from the city of Mayo. The property is accessible by road year-round and is located on the Yukon Energy power grid.

The property covers an area of ​​approximately 555 square kilometers and is the site of the Company’s Eagle and Olive Gold deposits. The Eagle Gold Mine is the newest operating gold mine in the Yukon. The Eagle and Olive deposits include proven and probable reserves of 3.3 million ounces of gold from 155 million tonnes of ore grading 0.65 grams of gold per tonne, as noted in a report National Instrument 43-101 Technical Statement for the Eagle Gold Mine dated December 3, 2019. The Mineral Resource under National Instrument 43-101 – Disclosure standards for mining projects (“NI 43-101”) for the Eagle and Olive deposits was estimated to contain 227 million tonnes at an average grade of 0.67 grams of gold per tonne, containing 4.7 million ounces of gold in the “measured and indicated” category, including proven and probable. Reserves and an additional 28 million tonnes averaging 0.65 grams of gold per tonne, containing 0.6 million ounces of gold in the “Inferred” category.

Cautionary and Forward-Looking Statements
This press release contains certain statements that may be considered “forward-looking statements”. Except for statements of historical facts about Victoria, the information contained herein constitutes forward-looking information, including any information relating to Victoria’s strategy, plans or future financial or operating performance. Forward-looking information is characterized by words such as “plan”, “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, ” estimate” and other similar words, or statements that certain events or conditions “may”, “will”, “could” or “should” occur, and include all guidelines and predictions set forth herein (including, but without limitation, the Company’s production and operating guidelines). In order to provide this forward-looking information, the Company has made certain assumptions about its business, operations, the economy and the mineral exploration industry generally, particularly in light of the impact of the novel coronavirus and the COVID-19 disease. (“COVID-19”) on each of the above. In this regard, the Company has assumed that production levels will remain in line with management’s expectations, that contracting parties will deliver goods and services on time, that equipment will perform as expected, that required regulatory approvals will be received, that no unusual geological or technical problems will occur, that no change in the price of gold will occur and no material events will occur outside the normal course of business of the Company. Forward-looking information is based on management’s opinions, assumptions and estimates believed to be reasonable as of the date the statements are made, and is inherently subject to a variety of risks and uncertainties and other known and unknowns that could cause actual events or results to differ materially from those described or implied by the forward-looking information. These factors include the impact of general business and economic conditions, COVID-19 related risks on the Company, global liquidity and credit availability on the timing of cash flows and the values ​​of assets and liabilities based on projected future conditions, expected metal production, fluctuation in metal prices, exchange rates, estimated ore grades, possible variations in ore grade or recovery rates, changes in accounting policies, changes in Victoria’s corporate resources, changes in project parameters as plans continue to be refined, changes in development and production timelines, the possibility of cost or cost overruns and unforeseen expenses, uncertainty of mineral reserve and mineral resource estimates, rising prices of fuel, steel, electr ity, labor and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or process to perform as expected, final price for sales of metals, unanticipated results Number of future studies, seasonality and unforeseen climatic changes, costs and timing of development of new deposits, success of exploration activities, additional capital requirements, authorization delays, government regulation of mining operations, risks environmental conditions, unforeseen reclamation expenses, title disputes or claims, limitations on insurance coverage and the timing and possible outcomes of pending litigation and labor disputes, risks associated with remote operations and availability infrastructure, price fluctuations and the availability of energy and other inputs needed for mining operations. Although Victoria has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described or implied by the forward-looking information, there may be other factors that cause actions, events or results are not anticipated, estimated or anticipated. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding Victoria’s expected financial and operating performance and Victoria’s plans and objectives and may not be appropriate for other purposes. All forward-looking information contained herein is given as of the date hereof, as applicable, and is based on the opinions and estimates of management and information available to the management of the Company as of the date hereof. The Company undertakes no obligation to update or revise the forward-looking information contained herein and the documents incorporated by reference herein, whether as a result of new information, future events or otherwise, except as applicable laws require it.

For more information, contact:
John McConnell
President and CEO
Victoria Gold Corporation
Tel: 604-696-6605
[email protected]

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