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Victoria Gold Corp. (TSX-V:VIT - News) ("Victoria"
or the "Company") is pleased to announce that Wardrop, A Tetra Tech
Company, ("Wardrop") has been engaged by Victoria to complete a NI
43-101 compliant Feasibility Study ("Feasibility Study") for the
Eagle Gold Mine project ("Eagle").
Feasibility Study Now Underway
On March 9, 2010, Victoria announced the
results of a Preliminary Feasibility Study which highlighted the development
of a mine at Eagle with production to start in 2013 and to average
approximately 170,000 ounces of gold per year with cash operating costs to be
below US$500/oz.
Wardrop will coordinate the preparation
of the Eagle Feasibility Study and incorporate previous work from the
Preliminary Feasibility Study. Wardrop will be responsible for defining
elements such as resource and reserve estimation, principal mine design,
planning and financial modeling and engineering. Wardrop will also further
examine mine optimization scenarios. Completion of the Feasibility Study is
the final step in proving up Eagle in advance of production.
Wardrop is an internationally recognized
engineering firm with considerable northern mining project experience and
brings a wealth of knowledge to the advancement of Eagle. Wardrop will lead
the development team of BGC Engineering, Kappes Cassiday & Associates and
Stantec, each of which was involved in the Pre-Feasibility Study, which allow
for strong continuity and accelerated delivery of the Feasibility Study. The
Feasibility Study is expected to be completed by Q4 2011 at a cost to
Victoria of $4 million.
"This is another important
milestone for the Eagle Gold Mine project and for Victoria. Wardrop has
assembled a top team of mining professionals and has a proven ability to
advance northern mining projects such as Eagle" said Chad Williams,
President and CEO of Victoria. "We continue to advance Eagle toward
development in a timely manner following the submission by Victoria of the
Eagle Project Proposal to the Yukon Environmental & Socio-Economic
Assessment Board (see news release dated December 20, 2010) and the
initiation of this Feasibility Study."
About Dublin Gulch - Eagle Gold Project
The Dublin Gulch property covers a large
area of 28 kilometres by 15 kilometres and contains the Eagle Gold Deposit
which hosts a National Instrument 43-101 compliant Probable Reserve of
1,751,000 ounces of gold contained in 66,141,000 tonnes of ore grading 0.823
g/t calculated at a gold price of $900/oz. The Dublin Gulch property is road
accessible year-round and is situated in the Mayo Mining District of Yukon
Territory, Canada. Dublin Gulch is 100% owned by Victoria.
About Victoria
Victoria is a high-growth gold company
with a focus on adding value per share through efficient exploration, project
development, and accretive acquisitions. Maintaining a low risk profile
through project diversification, sound financial management, and operating in
secure jurisdictions are key priorities for Victoria's management team.
The technical content of this news
release has been reviewed as accurate by Dr William Keats, P.Geo, Manager,
Exploration Yukon, Victoria Gold Corp., as the Qualified Person.
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, anticipated dates for the completion of work performed by
external consultants, 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.
This news release and the information
contained herein does not constitute an offer of securities for sale in the
United States and securities may not be offered or sold in the United States
absent registration or exemption from registration.
Neither the TSX Venture Exchange, nor
its Regulation Services Provider accepts responsibility for the adequacy or
accuracy of this release.
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