Toronto, ON / October 13, 2020 / Victoria Gold Corp. (TSX-VGCX) (“Victoria” or the “Company”) announces third quarter 2020 gold production of 35,312 ounces and gold revenue of C$ 80 million at an average realized price of US$ 1,886 per ounce of gold.
Mr. John McConnell, President and CEO commented, “This has been another strong quarter for operations at Eagle particularly given the increased challenges of ramping up a new mine during the unprecedented conditions related to COVID-19. There were no Lost Time Incidents during the quarter and we have achieved a very impressive 2.7 million hours LTI free. Effective health protection measures put in place have safeguarded employees and local residents and enabled mine operations to continue, with no suspected or confirmed cases of COVID-19 at site. Our first quarter of Commercial Production included record tonnes mined including ore and waste, tonnes stacked on the heap leach pad and gold production and sales. We are in the late stages of operational ramp-up and the team has done a commendable job in identifying and rectifying the few remaining bottlenecks. This will place us in a good position to continue to increase production in Q4 2020 and into 2021.”
Eagle Operational Highlights:
Ore Mined (000’s of tonnes) 2,077
Waste Mined (000’s of tonnes) 4,330
Ore Stacked (000’s of tonnes) 1,913
Ore Stacked Grade (gold grams per tonne, “g/t”) 0.86
Gold Production (ounces) 35,312
Gold Sales (ounces)1 32,029
Revenue from Gold Sales (C$ millions) 80
Average Realized Price (US$/ounce of gold sold)2 1,886
1. Gold Sales and Revenue from Gold Sales do not include royalty ounces delivered to Osisko Gold Royalties.
2. Average Realized Price per ounce is a non-IFRS performance measure and is calculated by dividing the Revenue from Gold Sales by the number of ounces sold for the period. Hedging gains/losses are considered a financial transaction and are not included in Average Realized Price.
Mining and processing activities continued to ramp up toward full production during the third quarter of 2020. Total tonnes mined were above forecast while ore mined was lower than forecast due to bottlenecks being resolved within the processing circuit. This allowed the mine to utilize available resources to advance waste stripping to ease future ore release requirements. Tonnes stacked on the heap leach pad increased during Q3 2020 however, total tonnes stacked and resultant gold production was lower than forecast. Importantly, both gold grade and metallurgical recoveries are reconciling well against the Eagle reserve model and a significant gold inventory is building on the heap leach pad.
A number of improvements related to material handling within the process circuit were completed, or are in progress, during the quarter. These corrective measures are significantly improving reliability and, in turn, will improve ore stacking and gold production going forward. Optimization activities in Q3 included:
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