Victoria Gold Corp. (TSXV:VIT) has reported an update on its Eagle Project Phase 1 De-Risking Program, on its Dublin Gulch project in the Yukon. The
objective of the $40M 2017 program was to de-risk the earthwork areas of the capital budget and prepare the construction site for Phase 2. Phase 1
activities included heap leach embankment preparation, control pond construction, project access road and bridge upgrades, pioneering of site roads
to crusher and recovery plant, expansion of camp to 250-person capacity, advancing detailed engineering and securing pricing on long-lead items. Management
stated that Phase 1 was successful in de-risking the project. We note that the company started construction without the full funding in-place; however,
with a cash balance of C$43 million (at August 31, 2017) and a commitment letter in place for a US$220 million debt facility, we estimate the company
requires additional funding of ~C$70-100 million. Victoria Gold currently trades at a discount on a per ounce basis, or C$31/oz versus peers at C$46/oz,
which we believe does not take into account the exploration potential of the Dublin Gulch property or that the project has just transitioned from shovel
ready to under-construction.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
Alex Pitcher | Associate
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Victoria Gold Corp. - TSXV:VIT - 1,2,4
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