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Victoria Gold Provides Update on Eagle Gold Mine Incident

Victoria Gold CorpVictoria Gold Corp

Victoria Gold Corp

WHITEHORSE, Yukon, July 04, 2024 (GLOBE NEWSWIRE) — Victoria Gold Corp. (TSX-VGCX) (“Victoria” or the “Company”) provides an update on the heap leach facility (“HLF”) incident that occurred at the Eagle Gold Mine on June 24, 2024 (see Company News Release dated June 24, 2024).

As initially reported, there were no injuries to personnel associated with the incident and Victoria’s primary focus has been on the continued safety of its employees and mitigation of harm to the environment. The Company has and will continue to liaise with the Government of Yukon, the First Nation of Nacho Nyak Dun, the Village of Mayo, the Yukon Workers’ Safety and Compensation Board and other regulatory authorities.

With respect to environmental mitigation, within hours of the incident a pumping system was established to return water from the HLF material to lined containment ponds. Diversion systems have also been installed for the management of both non-contact and contact water and material. To date, continued environmental surface water quality sampling at multiple points downstream of the property has not detected any cyanide.

The Company advises that it has received Notices of Default from its lenders under the Credit Agreement dated December 18, 2020 (the “Credit Agreement”).

Production remains suspended with previous 2024 production and cost guidance forecasts retracted.
The Company expects to provide further information by the end of next week.

Qualified Person
The technical content of this news release has been reviewed and approved by Paul D. Gray, P.Geo., who is a “Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About the Dublin Gulch Property
Victoria Gold’s 100%-owned Dublin Gulch gold property (the “Property”) is situated in 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 Property covers an area of approximately 555 square kilometers, and is the site of the Company’s Eagle and Olive Gold Deposits. As at December 31, 2023, and adjusting for mining depletion through this date, the Eagle and Olive Deposits include Proven and Probable Reserves of 2.3 million ounces of gold from 114 million tonnes of ore with a grade of 0.63 grams of gold per tonne. As at December 31, 2023, and adjusting for mining depletion through this date, the Mineral Resource for the Eagle and Olive Gold Deposits are estimated to host 234 million tonnes averaging 0.59 grams of gold per tonne, containing 4.4 million ounces of gold in the “Measured and Indicated” category, inclusive of Proven and Probable Reserves, and a further 36 million tonnes averaging 0.63 grams of gold per tonne, containing 0.7 million ounces of gold in the “Inferred” category.

Cautionary Language and Forward-Looking Statements
This press release includes certain statements that may be deemed “forward-looking statements”. Except for statements of historical fact relating to Victoria, information contained herein constitutes forward-looking information, including any information related to the intended use of proceeds from the Term Facility and the Revolving Credit Facility, the amended terms and conditions of the Loan Facility, and Victoria’s strategy, plans or future financial or operating performance. Forward-looking information is characterized by words such as “plan”, “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may”, “will”, “could” or “should” occur, and includes any guidance and forecasts set out herein (including, but not limited to, production and operational guidance of the Corporation). In order to give such forward-looking information, the Corporation has made certain assumptions about its business, operations, the economy and the mineral exploration industry in general, in particular in light of the impact of the novel coronavirus and the COVID-19 disease (“COVID-19”) on each of the foregoing. In this respect, the Corporation has assumed that production levels will remain consistent with management’s expectations, contracted parties provide goods and services on agreed timeframes, equipment works as anticipated, required regulatory approvals are received, no unusual geological or technical problems occur, no material adverse change in the price of gold occurs and no significant events occur outside of the Corporation’s normal course of business. Forward-looking information is…

Read More: Victoria Gold Provides Update on Eagle Gold Mine Incident

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