For the three months ended September 30, 2020, the mine’s first quarter of production, the Eagle mine produced 35,312 ounces of gold from 2.1 million tonnes of ore. Cash costs and all-in sustaining costs (AISC) were $804/oz and $1,315/oz respectively.
Gold sold in the quarter was 32,029 ounces at an average realized price of $1,886/oz, generating revenue of C$80.5 million. Operating earnings were C$31.6 million for the quarter.
Based on the Q3 2020 results, Victoria Gold has decided to revise its inaugural production guidance down to 72,000-77,000 ounces at an AISC of $1,175-$1,275/oz. The previous guidance set in mid-July was 85,000-100,000 ounces at an AISC of $950-$1,100/oz.
However, Victoria Gold president and CEO John McConnell believes that “best is yet to come” over the very a long mine life.
“Aside from the usual teething issues and learning curve experiences common to all start-ups, we are very pleased with our progress as we have moved in to and beyond commercial production,” he said.
The Eagle gold deposit is part of the company’s Dublin Gulch property, located approximately 375 km north of Whitehorse.
According to a feasibility study completed in 2016, the mine is expected to produce 210,000 ounces of gold annually at an AISC of $750/oz over an initial 10-year mine life, making it the largest gold mine in Yukon history.
Shares of Victoria Gold plunged 10.7% by midday Friday following the reduced guidance. The Toronto-based gold producer has a market capitalization of C$890.5 million.