TORONTO, ON --(Marketwired - March 28, 2017) - Victoria Gold Corp. (TSX VENTURE: VIT) "Victoria" or the "Company" is pleased to announce it has entered into an exclusive agreement with Finning (Canada), a division of Finning International Inc. (FTT.TO), to supply the mining fleet for its Eagle Gold Project.
The mining fleet will include two 6040FS hydraulic shovels, eleven 150 ton, 785D off-highway trucks and various auxiliary Caterpillar mining equipment.
The total cost of the new fleet is approximately US$50 million. A deposit will be made upon signing with further payments due upon delivery. Delivery of the fleet is expected between late 2017 and Q3 2018.
Victoria and Finning (Canada) have further agreed to identify opportunities for used auxiliary Caterpillar equipment as well as delivery date guarantees.
Mr. John McConnell, President and CEO of Victoria commented; "We are incredibly pleased to have entered into this deal with Finning Canada to supply a fleet of Caterpillar equipment for the Eagle Gold Project. Through this agreement, we were able to secure more favourable pricing and terms than estimated in our recent Feasibility Study and we have managed to further derisk the Eagle Gold Project without compromising our strong balance sheet."
"We are delighted to be a significant partner with Victoria in developing this mining project. This exclusive agreement is a testament to Caterpillar's industry leading equipment and our strong product support capabilities," said Mr. Juan Carlos Villegas, President of Finning Canada and Chief Operating Officer of Finning International.
About the Dublin Gulch Property
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 and maintains 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 Mine is expected to be Yukon's next operating gold mine and, between the Eagle and Olive deposits, include Proven and Probable Reserves of 2.7 million ounces of gold from 123 million tonnes of ore with a grade of 0.67 grams of gold per tonne, as outlined in a National Instrument 43-101 feasibility study. The NI 43-101 Mineral Resource for the Eagle and Olive deposits has been estimated to host 191 million tonnes averaging 0.65 grams of gold per tonne, containing 4.0 million ounces of gold in the "Measured and Indicated" category, inclusive of Proven and Probable Reserves, and a further 24 million tonnes averaging 0.61 grams of gold per tonne, containing 0.5 million ounces of gold in the "Inferred" category.
The technical content of this news release has been reviewed and approved by Paul D. Gray, P.Geo., as the Qualified Person.
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.