Victoria Gold provides update on incident at Eagle Gold Mine

WHITEHORSE, Yukon, July 4, 2024 (GLOBE NEWSWIRE) — Victoria Gold Corp. (TSX-VGCX) (“Victoria” or the “Company”) provides an update on the heap leach facility (“HLF”) incident that occurred on June 24, 2024 at the Eagle Gold Mine (see Company news release dated June 24, 2024).

As initially reported, there were no injuries in the incident. Victoria’s primary focus has been the continued safety of its employees and mitigating environmental damage. The company stands and will continue to work with the Yukon Government, the Nacho Nyak Dun First Nation, the Village of Mayo, the Yukon Workers’ Safety and Compensation Board and other regulators.

To improve environmental protection, a pumping system was set up within hours of the incident to return water from the HLF material to lined retention ponds. In addition, diversion systems were installed to manage both contact and in-contact water and material. To date, continuous sampling of surface water quality at multiple locations downstream of the property has not detected any cyanide.

The Company announces that it has received default notices from its lenders under the Credit Agreement dated December 18, 2020 (the “Credit Agreement”).

Production remains suspended as previous production and cost forecasts for 2024 have been withdrawn.
The company expects to provide further information by the end of next week.

Qualified person
The technical content of this news release has been reviewed and approved by Paul D. Gray, P.Geo., who is a Qualified Person as defined by National Instrument 43-101 – Disclosure standards for mineral 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 kilometres north of the capital city of Whitehorse and approximately 85 kilometres from the town of Mayo. The Property is accessible by road year-round and is within Yukon Energy’s 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. As of December 31, 2023, and taking into account mine depletion to that date, the Eagle and Olive deposits contain proven and probable reserves of 2.3 million ounces of gold from 114 million tonnes of ore grading 0.63 grams gold per tonne. As of December 31, 2023, and taking into account mine depletion to that date, the mineral resources of the Eagle and Olive gold deposits are estimated to contain 234 million tonnes at an average grade of 0.59 grams gold per tonne, of which 4.4 million ounces of gold are in the measured and indicated category, including proven and probable reserves, and an additional 36 million tonnes at an average grade of 0.63 grams gold per tonne, of which 0.7 million ounces of gold are in the inferred category.

The story goes on

Cautionary statements and forward-looking statements
This news release contains certain statements that may be deemed “forward-looking statements.” Except for statements of historical fact relating to Victoria, the information contained herein constitutes forward-looking information, including all information with respect to the intended use of proceeds from the Term Facility and Revolving Credit Facility, the amended terms of the Credit Facility and Victoria’s strategy, plans or future financial or operating performance. Forward-looking information is identified by words such as “plan,” “expect,” “budget,” “seek,” “project,” “intend,” “believe,” “anticipate,” “estimate” and other similar words or statements that certain events or conditions “may,” “will,” “could” or “should” occur, and includes all guidance and projections set out herein (including, without limitation, the Company’s production and operating guidance). In providing such forward-looking information, the Company has made certain assumptions about its business, operations, the economy and the mineral exploration industry generally, particularly with respect to the impact of the novel coronavirus and COVID-19 disease (“COVID-19”) on each of the foregoing. In this regard, the Company has assumed that production levels will be consistent with management’s expectations, contractors will provide goods and services within agreed timeframes, equipment will operate as expected, necessary regulatory approvals will be obtained, no unusual geological or technical problems will arise, no material adverse changes in the price of gold will occur and no significant events outside the normal course of the Company’s business will occur. Forward-looking information is based on management’s opinions, assumptions and estimates considered reasonable at the time the statements are made and by their nature are subject to a variety of risks and uncertainties and other known and unknown factors 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, risks related to COVID-19 on the Company, global liquidity and credit availability, timing of cash flows and values ​​of assets and liabilities based on forecast future conditions, expected metal production, fluctuating metal prices, foreign exchange rates, estimated ore grades, potential variances 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 overruns or unexpected costs and expenses, the uncertainty of mineral reserve and mineral resource estimates, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to perform as expected, final pricing of metal sales, unexpected results of future studies, seasonality and unexpected weather changes, costs and timing of developing newdeposits, the success of exploration activities, requirements for additional capital, permitting schedules, government regulation of mining operations, environmental risks, unexpected reclamation costs, 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 the availability of adequate infrastructure, fluctuations in the price and availability of energy and other inputs required for mining. 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 not to be anticipated, estimated or intended. 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. The reader is 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 made as of the date hereof and is based on the opinions and estimates of, and information available to, management of the Company as of the date hereof. The Company undertakes no obligation to update or revise any 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 required by law.

For further information please contact:
John McConnell
President and Managing Director
Victoria Gold Corp
Phone: 604-696-6605
[email protected]