Toronto, ON/ TNW-Accesswire / May 20, 2014/ Victoria Gold Corp. (TSX-V: VIT-V "Victoria" or the "Company") is pleased to announce diamond drilling has commenced at the Olive Zone, adjacent to Victoria's Eagle Gold deposit, Yukon Canada.
The exploration program at the Olive Zone has been designed to meet the following objectives:
- Identify near surface mineralization with gold grades in excess of 1.0 g/t over significant intervals;
- Define in excess of 10 million tonnes to materially influence the mine plan at Eagle; and
- Target near surface oxide material amenable to heap leaching with the aim to add to the total recovered gold at Eagle.
Olive is 2 kilometers (km) from the proposed infrastructure at Eagle along an existing road. Previous exploration (including diamond drilling and surface trenching) at the Olive Zone has been successful at identifying high-grade near surface mineralization over significant widths including:
- Trenching in 1991 that averaged 1.2 g/t Au over 97.6 metres (m);
- Diamond drilling in 1991 intersecting 1.08 g/t Au over 89.9 m (91-012C);
- Diamond drilling in 2010 intersecting 1.93 g/t Au over 20.3 m (DG10-384C); and
- Diamond drilling in 2012 intersecting 2.69 g/t Au over 26.5 m (DG12-531C).
Phase 1 of the 2014 program includes 3,000 m of diamond drilling. Preliminary metallurgical testing demonstrated the Olive Zone is amenable to heap leaching and a comprehensive test program will also be conducted.
John McConnell, President and CEO of Victoria commented "We believe the Olive Zone, within sight of Eagle, will be a meaningful value add compliment to the proposed Eagle Gold Mine and intend to demonstrate this potential with this 2014 targeted exploration program. The Company is capitalizing on the current competitive pricing environment with respect to drilling and support services and will continue to manage its' cash prudently. Victoria currently holds approximately $23 million in cash and receivables."
The Olive Zone target is defined by a broad gold--arsenic in-soils geochemical anomaly and lies on the intrusive-sediment contact of the Potato Hills Trend (as does the Eagle Deposit) and is punctuated by several historically exploited high-grade sulphide veins. The Olive area was mined on a small scale from shallow shafts and adits in the early 1900's and via placer mining in creeks draining the area. The Olive vein system is located near the top of Olive Gulch and consists of gold-bearing quartz-scorodite-arsenopyrite vein material.
The technical content of this news release has been reviewed and approved by Paul D. Gray, P.Geo., as the Qualified Person.
About the Dublin Gulch Project
Victoria Gold's 100%-owned Dublin Gulch gold property is situated in the central Yukon Territory, Canada, approximately 375 kilometers north of the capital city of Whitehorse, and approximately 85 kilometers from the town of Mayo. The property is accessible by road year-round, and is located within Yukon Energy's electrical grid. The Company has constructed a 100 person all-season camp at the project site.
The property covers an area of approximately 555 square kilometers, and is the site of the Company's Eagle Gold Deposit. 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.
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