June 19, 2013, Toronto: Victoria Gold Corp. (VIT.TSX-V) ("Victoria" or the "Company") is pleased to provide a corporate update. All $ values are in Canadian dollars.
On June 14, 2012, Victoria closed the sale of its Cove McCoy property to Premier Gold Mines Ltd (“Premier”) for $28 million plus a further $20 million in contingent production payments. Upon closing, Victoria received $4 million cash and $4 million in Premier common shares. On June 14, 2013, Victoria received the second payment of $5 million cash and $5 million in Premier common shares. The third payment of $10 million in cash and shares is due on June 14, 2014. Including the recently received payment outlined above, Victoria currently has approximately $33 million in cash, accounts receivables and marketable securities.
Victoria’s balance sheet is in excellent shape, however, management has recognized the prudence of conserving its cash during the current market weakness. The Company has undertaken staff reductions, reduced office space and administrative expenses and halted and/or deferred certain consultant and site activities. Engineering, permitting and site work to support full site mobilization and construction activities in 2014 will continue.
Andrew Kaczmarek, COO, has stepped down as an officer of the Company and will continue to be an integral member of the development team as a consultant. Richard Eliason, VP Exploration, has resigned. The Company would like to thank Mr. Eliason for his contribution and wish him well in his future endeavors.
Victoria Gold is an emerging gold producer whose flagship asset is its 100% owned Dublin Gulch property which hosts the Eagle Gold Deposit. Dublin Gulch is situated in the central Yukon, Canada, approximately 375 kilometers north of the capital city of Whitehorse. The property covers an area of approximately 650 square kilometers, is accessible by road year-round and is located within Yukon Energy Corporation's electrical grid.
The Eagle Gold Project is expected to be Yukon's next operating gold mine and includes Probable Reserves of 2.3 million ozs of gold contained in 92 million tonnes of ore with a grade of 0.78 grams of gold per tonne, as outlined in a National Instrument 43-101 Compliant Feasibility Study. The NI 43-101 Compliant Mineral Resource has been estimated to host 222 million tonnes averaging 0.68 grams of gold per tonne, containing 4.9 million ounces of gold in the "Indicated" category, inclusive of Probable Reserves, and a further 78 million tonnes averaging 0.60 grams of gold per tonne, containing 1.5 million ounces of gold in the "Inferred" category.
Cautionary Language and Forward-Looking Statements
Neither the TSX Venture Exchange, nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release. This press release includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities, anticipated metal production, internal rate of return, estimated ore grades, commencement of production estimates and projected exploration and capital expenditures (including costs and other estimates upon which such projections are based) and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include: metal prices; exploration successes; continued availability of capital and financing; and general economic, market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.
For Further Information Contact:
President & CEO
Victoria Gold Corp