Victoria Gold Corp
Financials:
Primary ticker: TSX:VGCX
Stage of development: Production
Primary minerals: Gold
Project to promote: Eagle Gold Mine
Project location: Canada
Website: www.vgcx.com
Corporate video: Click here
Corporate presentation: Click here
Victoria Gold (VGCX) is Leading Yukon’s New Gold Rush. The company’s 100% owned Eagle Gold Mine in central Yukon poured it’s first gold in Q3/19 and achieved commercial production on July 1, 2020. Eagle is an open-pit, heap leach operation located approximately 375 kilometers north of the capital city of Whitehorse. Despite the COVID-19 pandemic, VGCX successfully ramped up the largest gold mine in Yukon history into production. As at December 31, 2021 the Reserve is 2.7 million ounces of gold (133 m tonnes grading 0.65 g/t). The deposit is open at depth and along strike. VGCX is implementing Project 250K which will increase production to a rate of 250,000 ounces per year during 2023. Exploration potential of the greater Dublin Gulch property is excellent and includes priority targets Olive-Shamrock, Nugget/Raven and Lynx.
Cash: CAD$31.3M
Debt: CAD$207M
Major shareholders:
Coeur Mining – 17.7%
T. Rowe Price – 11.4%
Van Eck – 9.1%
Sprott – 5.5%
CI Investments – 4.0%
Management Ownership – 3%
Management Profile
John McConnell, Director, President & CEO
John McConnell’s +40 years of mining experience is mostly in Canada’s northern territories. Previously, he was President & CEO of Western Keltic Mines until it was acquired by Sherwood Copper; VP, NWT Projects for De Beers Canada primarily responsible for permitting and development of the Snap Lake Diamond Mine; Breakwater Resources Ltd in operations at the Nanisivik Zinc & Lead Mine on Baffin Island; and Strathcona Mineral Services Ltd. Mr. McConnell is the 2021 Winner of AME BC’s prestigious EA Scholtz Award for Excellence in Mine Development for his role in building the Eagle Gold mine. A graduate of the Colorado School of Mines, with a B.Sc. in Mining Engineering Mr. McConnell is also a Director of Lahontan Gold Corp and Abacus Mining & Exploration Corp.
What is your rationale for taking part 121 Mining Investment?
To provide an update and to raise investor awareness of Victoria Gold and the progress at the Eagle Gold Mine.
What recent news would you like to highlight to investors attending?
Mar.01, 2022: VGCX Lynx Exploration Results, Dublin Gulch, Yukon, including 2.0 g/t over 32 meters
Feb.28, 2022: VGCX Raven Drill Results, Dublin Gulch, Yukon
Feb.24, 2022: VGCX Provides Eagle Deep Exploration Program Update
Jan.24, 2022: VGCX John McConnell to Receive Developer of the Year Award
Jan.17, 2022: VGCX Provides Update on ‘Project 250’
Jan 10, 2022: VGCX Amends Credit Facilities Including Reduced Interest Rates
Jan.6, 2022: VGCX Eagle Gold MIne Q4 and Annual 2021 Production Results
What are your key goals for the next 3, 6 and 12 months?
3 Months:
Be fully ramped up to produce 200,000 ounces of gold per year
6 Months:
File an initial Resource at Raven
12 Months:
Project 250 fully implemented
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
As Victoria Gold is an attractive take-over target, and since Coeur Mining initiated interest with their purchase 17.4% of the company, the current greatest risk is a buy-out. To safe-guard shareholder interest, the Company adopted a Shareholder Rights Plan, and placed a Normal Course Issuer Bid. The Company is also increasing the annual gold production and extending the mine life of the Eagle Gold Mine. In addition, Victoria Gold has ramped up exploration activities to prove out other exploration targets on the Dublin Gulch Property to ensure that full value is realized in the event of a take-over.
What do you think makes your company such a compelling investment?
1. Expect significant production growth in 2022 through 2024 to reach a production rate of 250,000 ounces gold/year. Achieved over 40% production growth in 2021.
2. Best-in-class heap leach operations globally. Higher grade & lower strip ratio compared to average oxide heap leach projects in production.
3. Expect to generate significant free cash flow. Repaid $61M of debt in 2021.
4. District scale potential has resulted in great exploration success. Multiple satellite deposits, led by the Raven target, exist with mineralization potential above and beyond the current reserve estimates.
5. Delivering positive ESG results. Very low carbon emissions per ounce of gold. Focus on further improving sound social and governance practices.
What are the top 3 key investor takeaways?
1. Eagle Gold Mine: Ramping up to +200,000 oz Au/year, Generate significant free cash flow, Production increase to 250K oz/year by 2023, and mine life extension to 2040. 2. Dublin Gulch Property: Becoming a district scale exploration play. 3. Victoria Gold: Blue chip shareholder registry, and an ESG Leader.