business opportunities - victoria gold corp. · 8 | eagle gold project business opportunities |...

EAGLE GOLD PROJECT

BUSINESS OPPORTUNITIES

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.archbould.com

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https://www.vitgoldcorp.com/

EAGLE GOLD PROJECT BUSINESS OPPORTUNITIES |

TABLE OF CONTENTS

CORPORATE OVERVIEW

About Victoria Gold. ...............................................................................1

Meet Victoria’s Team .............................................................................2

PROJECT OVERVIEW

The Eagle Gold Project .........................................................................4

Eagle Gold Project Facts .......................................................................5

Mining and Gold Extraction Processes ...............................................6

Planned Site Layout Infrastructure..................................................... 7

Environmental Assessment & Regulatory Review ............................9

Health & Safety Policy ....................................................................... 10

Environmental Policy ...........................................................................11

Working with Local Communities ...................................................... 12

Comprehensive Cooperation and Benefits Agreement (CBA) ...... 13

CONTRACTING

Business Opportunities. ..................................................................... 14

Construction Phase Contracting Procedures ................................. 15

Contracts .............................................................................................. 16


| 1 EAGLE GOLD PROJECT BUSINESS OPPORTUNITIES |

ABOUT VICTORIA GOLD

Victoria Gold’s 100 per cent-owned Dublin Gulch Property is situated in the central Yukon, approximately 375 kilometres north of the territory’s capital city of Whitehorse, and approximately 85 kilometres from the Village of Mayo within the traditional territory of the First Nation of Na-Cho Nyak Dun.

The Property is accessible by road year-round, and is located within Yukon Energy’s electrical grid.

The Dublin Gulch Property covers an area of approximately 350 square kilometres, and is the site of the company’s Eagle and Olive Gold deposits.

The Eagle Gold Project is expected to be the Yukon’s next operating gold mine and includes 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.

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C O R P O R A T E O V E R V I E W



2 | EAGLE GOLD PROJECT BUSINESS OPPORTUNITIES |

JOHN McCONNELL

President, Director & CEO

John has more than 35 years of mining experience, mostly spent in Canada’s northern territories. Previously, he was President and CEO of Western Keltic Mines until it was acquired by Sherwood Copper. During his career he was Vice President, Northwest Territories Projects for De Beers Canada where he was primarily responsible for the permitting and development of the Snap Lake Diamond Mine. His experience also includes 12 years with Breakwater Resources Ltd./Nanisivik Mines Ltd. in operations at the Nanisivik Zinc and Lead Mine on the northern tip of Baffin Island, and he spent six years with Strathcona Mineral Services Ltd. where his work included engineering, feasibility studies and project development.

John is a graduate of the Colorado School of Mines, with a B.Sc. in Mining Engineering. He is also a director of industry organizations including the Klondike Placer Miners’ Association (KPMA), Yukon Chamber of Mines (YCM) and the Mining Association of Canada (MAC).

MARTY RENDALL

Chief Financial Officer

Marty joined Victoria in 2007 as Chief Financial Officer. Throughout his career, Marty has been involved in every stage of a mine’s life from early stage exploration through studies and permitting into construction, operations and closure. Marty holds the Chartered Financial Analyst designation along with a Bachelor of Business Administration degree.

MARK AYRANTO

Executive Vice President

Mark has over 15 years of project development experience including 10 years’ experience working in the Yukon. Mark is the Past President of the Yukon Chamber of Mines and is also Chair of the Yukon Minerals Advisory Board to advise the Minister of Energy, Mines and Resources on mineral development matters in the Yukon. Previously he was the Vice President Corporate Development for StrataGold Corporation (formerly TSX:SGV) and is the current chair of Banyan Gold (TSXV: BYN).

MEET VICTORIA’S TEAM

VICTORIA HAS A STRONG MANAGEMENT TEAM WITH MINE BUILDING EXPERIENCE IN PLACE.


http://B.Sc


TONY GEORGE

Vice President, Project Execution

Tony is a mining engineer with over 35 years of experience in operations, project management and construction. Tony has held senior technical positions at the Iron Ore Company of Canada in Labrador and at Aura Minerals, working on projects in South America. He has been a lead consultant working on many international projects with Rescan Engineering and MRDI (AMEC). Tony has taken projects from feasibility through construction to operations including the De Beers Canada Victor Diamond Project and Lucara Diamond Corp’s Karowe Mine in Botswana. Prior to joining Victoria Gold, Tony was the Vice President Project Development at Lundin Gold for the Fruta del Norte project in Ecuador.

PAUL D. GRAY

Vice President, Exploration

Paul holds a Bachelor of Science (Honours) degree from Dalhousie University and is a member in good standing with the Association of Professional Engineers and Geoscientists of British Columbia. Paul has been the Principal of Paul D. Gray Geological Consultants for over 10 years, and handles Northern Canada exploration projects from permitting through execution. Paul has been working in the Yukon and Northwest Territories with advanced gold exploration projects since 2001 and has been part of the Victoria Gold team since 2013.

From left to right: Marty Rendall, John McConnell, Paul D. Gray, Tony George, and Mark Ayranto.

photo: Alistair M

aitland Photography



The Eagle Gold Project is located in the Yukon, a historically significant gold producing region and a favourable mining jurisdiction. The property is approximately 85 kilometres by road; north-northeast of the Village of Mayo. The Dublin Gulch claim block, which hosts the Eagle and Olive Gold deposits, is approximately 350 Km2 in size and is situated within the mineral rich Selwyn Basin. The property is located within the traditional territory of the First Nation of Na-Cho Nyak Dun.

The future Eagle Gold Mine will produce doré from a conventional open pit, with a 3-stage crushing plant, in-valley leach operation and gold recovery plant. The site has excellent infrastructure

THE EAGLE GOLD PROJECT

WHITEHORSE

including year round road access, commercial grid power 45 kilometres along a spur line from site and an airstrip 85 kilometres south of the Project. Victoria currently has an all-season camp, which is being expanded for construction and operations.

The project will employ 350 to 400 people and will be a significant economic contributor to the Yukon.

The Eagle Gold Project has received all major permits for construction and operations, and signed a Comprehensive Cooperation and Benefits Agreement (CBA) with the First Nation of Na-Cho Nyak Dun in 2011.

P R O J E C T O V E R V I E W



ACTIVITY 2017 2018 2019

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Exploration

Detailed Engineering

Long Lead Equipment Order

Mobilization

Phase 1 – Site Capture

Phase 2 – Construction

Commissioning

Production

Financing

Owners Team

First Gold Pour

Key findings of the 2016 Feasibility Study include:

Strong Economics: Post tax Net Present Value @ (5%) = C$508 million

After-Tax Internal Rate of Return = 29.5%

Gold price = US$1,250/oz & Exchange Rate = 0.78 C$/US$

After-Tax Payback: 2.8 years

Permitted: all major permits in place

Near-term Cash Flow Potential: one-year construction schedule

Long Life: 11-year mine life with expansion potential

Highlights of the Feasibility Study:

Proven and Probable Reserves (gold oz)(1)(2) 2,663,000

Average annual gold production (oz) Approximately 200,000

Initial capital expenditure (C$ millions) 369

Initial capital expenditure (US$ millions) 288

Operating cost (C$/tonne leached) 10.49

Operating cost (US$/oz) 538

EAGLE GOLD PROJECT FACTS



MINING AND GOLD EXTRACTION PROCESSESMining

Eagle and Olive are open pit mines and will operate as a drill, blast, load and haul operation with a mine life of approximately 10 years. Ore to be crushed will be hauled to the primary crusher located toward the north east side of the Eagle pit. Run of mine (“ROM”) ore will be hauled directly to the primary heap leach pad or the stockpile.

Eagle waste rock will be hauled to one of two waste rock storage areas immediately to the south and north of the open pit which results in short haul distances. Olive waste rock will be hauled to a waste rock storage area immediately southwest of the open pit. Waste rock storage will be managed to allow for future pit expansion. The ratio of waste to ore is 0.95 to 1 and total waste material is 116 million tonnes.

Processing

Material above the crushed ore cut-off grades will be hauled from the open-pits to the primary crusher. Following primary crushing, ore will be conveyed through a secondary and tertiary crushing circuit to a final crush size of P80 6.5 mm. Crushed ore will be conveyed to one of the two in-valley heap leach pads.

Ore will be stacked in 10m high lifts using a mobile conveying and stacking system then leached for 90 days. The pregnant, or gold bearing solution, collects into a sump and is pumped to a Gold Recovery plant where gold will be removed from the solution, smelted and poured into doré bars. Life of mine recovery is estimated at 70.8%, including ROM ore.

Ore will be mined and primary crushed 365 days per year. Ore will be stacked on the heap leach pads 275 days per year. During the coldest 90 days of the year primary crushed ore and ROM ore will be stockpiled until the process can resume.

A total of 123 million tonnes of ore will be processed, The primary heap leach pad will hold 77 million tonnes while the secondary heap leach pad will hold 46 million tonnes. The secondary heap leach pad has potential excess capacity should it be required for mine expansion.

General overview of the Eagle Gold Project camp.



PLANNED SITE LAYOUT INFRASTRUCTURE

³

0 400 800200

Metres

Eagle Pup Waste RockStorage Area

Platinum GulchWaste RockStorage Area

Heap Leach Phase 1

Heap Leach Phase 2

Heap Leach Phase 3

90 DayStorage

Lower Dublin South Pond

Ice Rich OverburdenStorage Area

Camp

Event Pond

Process Building

Eagle Pit

Truck Shop

Substation

Secondary & TertiaryCrushing

Heap Leach Conveyor

Topsoil Stockpile

Topsoil Stockpile

Topsoil Stockpile

Waste ManagementFacility

Primary Crushing

AN & EmulsionStorage Area

Magazine StorageMagazine Storage

Mine WaterTreatment Plant

Laydown

Planned site layout



Infrastructure

The Project is well supported by local infrastructure. Eagle is accessed via an existing year-round road connecting to the Silver Trail Highway. Grid power to site will be via a 45-kilometre spur line connecting to the current power line, which runs along the highway. A 1,400m airstrip is located in Mayo approximately 85 kilometres by road from the Project site. All mine site infrastructure to be built for Eagle and Olive is located within a few kilometres of the open pits to include:

• Fresh water supply systems.

• Water management infrastructure.

• Waste management systems.

• Ancillary facilities, including:

• Warehouse/truck shop/mine dry/ first aid.

• Cold storage/laydown.

• Administration building.

• On-site fuel storage.

• On-site explosive and detonator magazine storage.

• Assay laboratory.

• Camp accommodations with recreation area, commissary and laundry facilities.

• Power supply and distribution, including:

• A 45 km long, 69 kV power supply line from the Yukon Energy Corporation power grid.

• Power distribution from the mine site substation to all the facilities.

• Communication systems.



ENVIRONMENTAL ASSESSMENT & REGULATORY REVIEW The Eagle Gold Project has received all major regulatory approvals required for the construction and operation of the Project.

Victoria received the final Water Use Licence from the Yukon Water Board in December 2015.

The Water Use Licence is the conclusion of five years of permitting and engineering work on the Project that resulted in a Project design that is both low cost and protective of the environment.



Victoria understands that health and safety is more than a series of policies and procedures; it is an essential part of the Project’s success. The Victoria team believes:

• All employees have a right to safety information and training.

• Safe working practices are a condition of employment.

• Preventing injuries is everyone’s responsibility; and,

• All injuries are preventable.

HEALTH & SAFETY POLICYThese principles are endorsed by company officers and underpin Victoria’s operating commitment to the highest possible performance in health and safety.

Victoria also believes that health and safety is a shared responsibility. Everyone is required to integrate sound health and safety practices into every decision and every task, every day.

Delivery of Construction Equipment at Eagle Gold Project site.



ENVIRONMENTAL POLICYVictoria acknowledges that its activities can impact the environment; therefore it is the company’s intention to act responsibly by demonstrating stewardship of the environment. Victoria believes that environmental stewardship is not just a matter of “doing the right thing” but that there is also a business case for doing so and that it will create value for our shareholders.

Victoria commits to the following principles to ensure environmental stewardship:

• Comply with applicable legal requirements.

• Work to reduce or avoid potential environmental impacts through effective management, the wise use of resources, pollution prevention and other appropriate mitigative measures.

• Establish and review environmental objectives and targets.

• Seek continual improvement in environmental performance through regular review and improvement of the company’s operational procedures.

• Ensure that employees and contractors are aware of this policy, understand it, are aware of their roles and responsibilities, and have the appropriate training to do their work.

• Make this policy available to the public through Victoria’s website: www.vitgoldcorp.com

VICTORIA IS COMMITTED TO EXPLORING FOR, BUILDING, OPERATING AND CLOSING MINES IN AN ENVIRONMENTALLY, SOCIALLY AND FINANCIALLY RESPONSIBLE MANNER.


http://www.vitgoldcorp.com


Victoria believes that the Eagle Gold Project must benefit and add to the sustainability of the Yukon. The company will work to achieve socio-economic development through our agreements with the Na-Cho Nyak Dun, our corporate policies and continued community participation in employment and business opportunities at all stages of the mineral development process from exploration, mine development, production and closure.

Since 2009, Victoria has had various community meetings, workshops, and

WORKING WITH LOCAL COMMUNITIESopen houses with Na-Cho Nyak Dun leadership, staff, and citizens as well as the Village of Mayo leadership and residents, and other interested parties.

These sessions provided the public with Eagle Gold Project updates, as well as specific presentations on key aspects of the proposed operation such as employment and potential business opportunities. Victoria also publishes the Potato Hills Press newsletter and continues to meet on a regular basis with the First Nation and the community.

photo: Alistair M

aitland Photography



COMPREHENSIVE COOPERATION AND BENEFITS AGREEMENT (CBA)Victoria and the First Nation of Na-Cho Nyak Dun (NND) signed a Comprehensive Cooperation and Benefits Agreement (CBA) on October 17, 2011. The CBA replaced an earlier Exploration Cooperation Agreement, and applies to the proposed Eagle Gold Mine development and all exploration activities conducted by Victoria anywhere in NND traditional territory south of the Werneke Mountains, which includes all of Victoria’s existing mineral exploration properties.

The CBA does not apply to any exploration or mining activities on NND Settlement Lands or within NND traditional territory north of the Wernecke Mountains, unless NND provides its prior consent.

The objectives of the CBA are to:

• Provide certainty for development of the Eagle Gold Project and on-going exploration.

• Provide NND with employment and economic development opportunities while respecting and promoting NND’s desired environmental protection objectives.

• Establish a process for ongoing communication between Victoria and NND so both parties can identify and pursue contracting and partnering opportunities.

• Provide NND with employment and training opportunities.

• Provide financial support and profit sharing opportunities that may result from a successful project.

As part of the implementation of the CBA the position of NND Liaison was created. The NND Liaison is responsible for the development of the:

• NND Human Resource Registry

• NND Business Registry

These two registries will provide Victoria and its contractors with information to help plan training programs and identify NND businesses.

Copies of the NND Human Resource Survey and NND Business Registry forms can be downloaded from the NND web site: www.nndfn.com

Through the CBA (and the previous Exploration Cooperation Agreement), Victoria has proudly contributed over $10 million to NND, the NND Development Corporation (NND DC) and the community and over $31 million to the Yukon for a total, cumulative economic contribution exceeding $41 million.

The company’s cumulative expenditures in the region include:

• Annual CBA and Category B payments.

• $50,000 in scholarships to 55 NND citizens.

• Contributions to community events.

• Contracts with the NND DC joint venture partners and Yukon businesses.


http://www.nndfn.com


Victoria has developed procurement and recruitment policies that reflect the company’s commitment to working with NND, NND DC, communities and local business.

Victoria’s policies will ensure that hiring and contracting activities are completed in a comprehensive, consistent, and transparent manner and are reflective of commitments defined in the CBA.

BUSINESS OPPORTUNITIESIn keeping with Victoria’s commitment to procure goods and services locally, the company will, in conjunction with the NND Business Registry, maintain a Victoria Yukon Business Registry. Victoria’s Yukon Business Registry form may be obtained from Victoria’s Whitehorse office or downloaded from www.vitgold.com.

C O N T R A C T I N G


http://www.vitgold.com


CONSTRUCTION PHASE CONTRACTING PROCEDURESVictoria will use a combination of tendering and sole sourcing to secure companies to carry out the work to construct the Eagle Gold Mine. Victoria retains the right to make independent decisions in a businesslike manner, and in its sole discretion, relating to direct negotiations of contracts, the terms, and conditions in invitations to tender that potential bidders must satisfy, choice of contractors from whom bids will be sought, selection of successful bids and terms contained in any contract awarded.

In March 2017, Victoria awarded the engineering contract to JDS Energy & Mining in partnership with Hatch (“JDS/Hatch”). The JDS/ Hatch team have extensive experience working together on northern projects, including the Minto Mine, Yukon, Hope Bay Project, Nunavut, and the recently completed Gahcho Kué Mine, NWT, which was built and brought into operations ahead of schedule and under budget.

JDS/Hatch will complete detailed design and engineering under an Engineering, Procurement and Construction Management contract. Victoria will work together with the JDS/Hatch team to establish contract packages and bidders lists.

To procure goods and services needed for the construction of the Eagle Gold Mine, Victoria and JDS/Hatch will develop a list of qualified contractors and suppliers. Businesses will be requested to supply information concerning their capabilities and desire to participate in the Project.

Yukon businesses can also contact Victoria at [email protected] with information concerning their company.

Procurement for goods and services will be done through the following process:

• JDS/Hatch will prepare bidders lists.

• Victoria will review the bidders list and make final approval.

• JDS/Hatch will issue a Request for Quotation/Request for Proposal to all companies on the bidders list.

• Bidders will send quotes to JDS/Hatch for technical and commercial comparison.

• RFQ / RFP’s will request bidders include their company’s local procurement, local and First Nations hire and training policies and programs and examples of programs they have implemented on other contracts.

• JDS/Hatch will review the bids and prepare a technical and commercial comparison.

• JDS/Hatch will select a recommended supplier for review.

• Victoria will make all final approvals.

• JDS/Hatch will issue the purchase order or contract to the successful bidder.

Note: Victoria will be providing JDS/Hatch with the companies listed in the NND and Victoria Yukon Business Registries. If your company is an NND or Yukon based business, please file your company information with the NND Liaison or with Victoria’s Whitehorse office.


mailto:[email protected]


The following is a list of the potential contracts Victoria will be preparing to submit for quotes.

Service Contracts will include:

Site Services: The construction camp will house 400 people. Site services will be required to maintain the camp and access road. These services will include sewage and waste removal, snow removal, and road maintenance.

Fuel Supply and Storage: Fuel supply and on-site fuel storage capacity will be increased.

Light Vehicle Maintenance: Victoria may consider outsourcing the maintenance of mine site light vehicles.

Bus Service: Buses will be required to transport up to 50 people at a time to site.

CONTRACTSAirline Service: Victoria may potentially charter aircraft to transport employees and contractors between Whitehorse and Mayo.

Security: An increase in the number of employees and contractors at site will require the company to hire a security contractor to service a 400-person camp.

Medical: Victoria will hire a medical contractor to provide medical services required for a 400-person camp.

The following contracts were awarded in Q2 2017:

• Civil and Site Construction.

• Camp Catering.

• Janitorial and Maintenance Services.

• Environmental Monitoring.

Evening view of the expanded Eagle Gold Camp.


Vancouver Office Victoria Gold Corp. Suite 1000 - 1050 West Pender Street Vancouver, BC Canada, V6E 3S7 Telephone: (604) 682-5122

Whitehorse Office Victoria Gold Corp. Suite 250 - 2237 2nd Avenue Whitehorse, YT Canada, Y1A 0K7 Telephone: (867) 393-4653

CONTACT INFORMATION

vitgoldcorp.com

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http://vitgoldcorp.com


business opportunities - victoria gold corp. · 8 | eagle gold project business opportunities |...

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