September 11, 2012: Victoria Gold Corp. (TSX-V: VIT-V "Victoria" or the "Company") is pleased to report new drill hole results from its Eagle Gold Projects in Yukon, Canada. The project is located approximately 80 km by road from the town of Mayo in central Yukon.
Recent drill hole results at the Eagle gold deposit continue to be positive, encountering numerous, wide intercepts with higher grades than the Eagle gold Resource and Reserve. These holes were targeted in order to improve the knowledge base of the deposit, with an emphasis on adding resources and improving the estimated grade of the deposit. Further goals were to reclassify grade blocks from Inferred to Indicated and to enhance the understanding of alteration and oxidation controls and distribution.
Mr. John McConnell, President and CEO of Victoria Gold Corp. commented, "Our Eagle drill program was a strong success. We targeted wide zones within and adjacent to the Eagle open-pit limits with the potential to produce higher grade, near surface early in the mine life. This work will support optimization of the mine planning to further boost cash flows in the initial years of production."
The Eagle Gold Deposit is expected to be Yukon's next operating gold mine and includes Probable Reserves of 2.3 million ozs of gold from 92 million tonnes of ore with a grade of 0.78 grams of gold per tonne, as outlined in a National Instrument 43-101 definitive feasibility study. The NI 43-101 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.
Highlights from Recent Drill Holes:
|Drill Hole #
About the Eagle Gold Deposit
The Dublin Gulch property is located in the north-central part of the Selwyn Basin on the northern limb of the McQuesten Antiform. The area is underlain by Proterozoic to Lower Cambrian-age Hyland Group metasediments and the intrusive Dublin Gulch granodioritic stock. The stock is elongate in a northeast direction and measures approximately five kilometers in length and two kilometers in width. The Eagle Gold Deposit is localized at the narrowest exposed portion of the stock, near its known western limit. The Dublin Gulch stock covers a large area and many gold targets remain to be explored.
The Eagle Zone is comprised of sub-parallel extensional quartz veins that are best-developed within the granodiorite proximal to both the hangingwall and footwall intrusive-metasediment contacts. The veins are also well developed within embayments and narrow portions of the stock. Individual veins are typically composed of white or grey quartz with subordinate potassium feldspar and strike at an azimuth of 060° to 085°, typically dip south 60° to near vertical, and range in width from one millimeter to more than 10 centimeters. The vein sets form in steeply north dipping to near vertical zones that are amenable to bulk mining. Mineralization occurs as elemental gold, both as isolated grains and most commonly in association with arsenopyrite, pyrite and pyrrhotite.
About the Dublin Gulch Project
Victoria Gold's 100% owned Dublin Gulch gold property is situated in central Yukon Territory, Canada, approximately 375 kilometers north of the capital city of Whitehorse, and approximately 80 kilometers by road from the town of Mayo. The property is accessible by road year-round, and is located within Yukon Energy's service area. The Company has constructed a 100 person all-season camp at the project site. The property covers an area of approximately 650 square kilometers, and is the site of the Company's Eagle Gold Deposit.
Quality Control/Quality Assurance and Assaying
Sample results cited in this news release were obtained from core drilled by independent contractors under the supervision of Victoria Gold's geologic staff. Samples were delivered to the Whitehorse, Yukon, sample preparation facility of ALS Minerals and the analytical determinations were performed at ALS Minerals' facilities in Vancouver, BC.
All of the samples collected from the drilling program are managed in strict compliance with the Company's QA/QC (quality assurance / quality control) program which has been reviewed and approved by a number of independent engineering firms.
The technical content of this news release has been reviewed as accurate by Rich Eliason, as the Qualified Person.
An image and map are available at the following address: http://media3.marketwire.com/docs/EP_PPM.pdf
Cautionary Language and Forward-Looking Statements
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 and market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.
For Further Information Contact:
John McConnell, President & CEO
Victoria Gold Corp