Business Opportunities Guide
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YUKON’S NEXT NEW GOLD MINE |
Business
Opportunities Guide
Eagle Gold Project
This guide contains important information about
business opportunities offered at the Eagle Gold
Project. We invite you to take a look and discover
how you can get involved in this world-class project.
Table of Contents
CORPORATE OVERVIEW
About Victoria Gold Corp......................................................................... 5
Meet Victoria Gold’s Team....................................................................... 6
PROJECT OVERVIEW
The Eagle Gold Project............................................................................. 7
Eagle Gold Facts....................................................................................... 8
Mining and Gold Extraction Processes.................................................. 8
Heap Leach Facility................................................................................... 9
Infrastructure.......................................................................................... 10
Environmental Assessment & Regulatory Review............................... 11
Eagle Gold Project Development Timeline . .........................................12
YUKON’S NEXT NEW GOLD MINE | | 3
Table of Contents
STAINABILITY AND COMMUNITIES
Health & Safety Policy.............................................................................13
Environmental Policy...............................................................................13
Working with Local Communities..........................................................14
Comprehensive Cooperation and Benefits Agreement......................15
CONTRACTING
Business Opportunities..........................................................................16
Construction Phase Contracting Procedures......................................17
2013 Contracts........................................................................................18
Contact Information...............................................................................20
4 | YUKON’S NEXT NEW GOLD MINE |
About Victoria Gold Corp.
Corporate Background
Victoria Gold Corp. is an emerging gold producer whose flagship asset is its 100%
owned Dublin Gulch property which hosts the Eagle Gold deposit. Dublin Gulch is
situated in central Yukon Territory, Canada, approximately 375 kilometers north of
the capital city of Whitehorse. The property covers an area of approximately 650
square kilometers, is accessible by road year-round and is located adjacent to Yukon
Energy’s electrical grid.
The Eagle Gold Project is expected to be Yukon’s next new operating gold mine and
includes Probable Reserves of 2.3 million ozs of gold from 92 million tonnes of ore
with a grade of 0.78 grams of gold per tonne, as outlined in a National Instrument
43-101 definitive feasibility study. Victoria Gold Corp. is focused on bringing the Eagle
Gold Project into production in 2014/2015, producing +200,000 ounces of gold
annually at an operation cost of less than $600 per ounce. The Project at present is in
the Detailed Design stage and ready to begin construction in spring 2013. The Eagle
Gold Project is on track to be the largest gold mine in Yukon history.
YUKON’S NEXT NEW GOLD MINE | | 5
Meet Victoria Gold’s Team Victoria Gold Corp. has a strong management team with mine building experience in place. John McConnell, Director, President and CEO John McConnell is a Professional Mining Engineer with over 35 years of mining experience including exploration, engineering, environmental assessment and permitting, construction and operations. A large amount of this experience has been in Canada’s north including twelve years with Breakwater Resources Ltd/Nanisivik Mines Ltd in operations at the Nanisivik Zinc and Lead Mine on Baffin Island in Nunavut, and six years with De Beers Canada where he was primarily responsible for the permitting and development of the Snap Lake Diamond Mine in the Northwest Territories. Recently, he was President and CEO of Western Keltic Mines Inc. until its takeover by Sherwood Copper Corp. Andy Kaczmarek, Chief Operating Officer Andy has over 35 years of diverse natural resource experience in project development, construction and operations, having held senior management positions with developing and producing companies including; Anatolia Minerals Development Limited (now Alacer Gold Corporation), Kinross Gold Corporation, Gabriel Resources Limited and Cyprus Amax Minerals. Andy’s experience includes engineering, building and operating heap leach mines, both gold and copper, in the United States, Peru, Chile, and Turkey. Marty Rendall, Chief Financial Officer Marty joined Victoria Gold Corp. in 2007 as the Chief Financial Officer. Marty was previously employed by De Beers Canada where he most recently held the position of Senior Financial Analyst. Previous to that he was a Financial Analyst for Breakwater Resources. Mark Ayranto, Executive Vice President Mark has over 15 years of project development experience and has been working in Yukon for the past six years. He is past President of the Yukon Chamber of Mines and is also a member of the Yukon Minerals Advisory Board to advise the Minister of Energy, Mines and Resources on mineral development matters in Yukon. Mark holds a BSc and an MBA. Kelly Arychuk, Vice President – Mine Support Services Kelly brings over 10 years experience in the mining industry focusing on Human Resources and people development, supply chain, camp management and start-up, as well as dealing with larger scale operating mining companies in Northern Canada. Kelly also held senior managerial human resource positions at BHP Billiton and the City of Yellowknife. Kelly is active in many boards and agencies around training and development and is currently the NWT President of Skills Canada and the Chair of the NWT Mine Training Society. Rich Eliason, Vice President – Exploration Rich has 25 years experience in exploration & mining geology, project generation and management. During Rich’s career he has held positions with FMC, Minorco, AngloGold, Queenstake Resources, Yukon-Nevada Gold, and Tournigan Resources. 6 | YUKON’S NEXT NEW GOLD MINE |
The Eagle Gold Project
project overview
The Eagle Gold Project is located in Yukon, a historically significant gold producing
region and a favourable mining jurisdiction. The property is approximately 85 km by
road; north-northeast of the village of Mayo. The Dublin Gulch claim block which hosts
the Eagle Gold deposit is approximately 650 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.
WHITEHORSE
The future Eagle Gold mine will be a conventional open pit, three-stage crush, in-valley
leach operation and will have excellent infrastructure including year round road access,
commercial grid power 25 kilometers from site and an airstrip 80 km south of the project.
Currently the company has a 100-person all-season camp at the Eagle Gold Project site.
A feasibility study completed in February 2012, targets initial production in the first
quarter of 2015. The two-year construction phase will commence in 2013 with initial
capital and pre-strip costs estimated at $430 million. The project will employ 350-400
people and prove to be significant economic development for Yukon.
YUKON’S NEXT NEW GOLD MINE | | 7Eagle Gold Project Facts
Mining Method Low Cost: Open pit, valley Economics:
leach, gold recovery plant • $381 M NPV 5%, pre-tax and 24% IRR
at US $1,325/oz
Resources: 4.8M oz Au Indicated and
• $1,227 M NPV 5%, pre-tax and 53%
1.5 M oz Au Inferred
IRR at US $2,000/oz
Reserves: 2.3 M oz Au
Construction Employment:
Construction & Working Capital: Approximately 400 workers
C$430M
Operating Employment:
Production to Commence: Approximately 300 workers
Q4 2014/Q1 2015
Mine Life: 10 years
Production:
Community: Comprehensive Cooperation
• 212,000 oz Au/year at an operating
and Benefits Agreement with First Nation
cost of US $542/oz in first 5 years
of Na-Cho Nyak Dun
• 192,000 oz Au/year at an operating
cost of US $615/oz life of mine
Mining and Gold Extraction Processes
During mine operations, production for 250 days of the year will consist of mining, crushing,
agglomeration, and heap leach stacking and leaching.
Open pit mining operations will be conducted by conventional drill/blast and load/haul
using 91 t ore trucks, 136 t waste trucks, and shovels on initial 7.5 m benches to be double-
benched in later years. A total of 132.4 Mt of waste will be stored in waste rock storage sites
adjacent to the south (Platinum Gulch) and north (Eagle Pup) of the open pit.
The ore will be crushed at a crushing facility located on the south side of Dublin Gulch. The
crushed ore will be transported by covered conveyor to the heap leach pad. Equipment will
be used to stack the ore in 10 m lifts. Material that has been stacked on the heap leach pad
will continue to be leached year-round, however, during the winter period, mined material
will be stockpiled until the following summer period when it will then be delivered to the
crushers and the heap leach pad. Barren solution containing cyanide will be distributed to
the stacked material through pumps, pipe headers, and drip emitters buried 3 m below the
surface of crushed ore.
Solution containing the gold (pregnant solution) will be pumped from the in-heap pond to
an adsorption, desorption and recovery (ADR) facility for processing and finally poured into
doré bars.
8 | YUKON’S NEXT NEW GOLD MINE |Heap Leach Facility
The heap leach facility, located approximately 1.2 km north of the Eagle Zone deposit
will comprise of an earth/rock-filled embankment, a lined storage area, an in-heap
storage pond, pumping wells, events ponds, diversion ditches, and leak detection, and
recovery and monitoring systems.
The final in-valley heap will cover an area of 520 x 1,980 m on a slope of approximately
17°, with an average vertical thickness of 103 m and a maximum thickness of 150 m.
The pad will be lined with linear low-density polyethylene (LLDPE) over a geosynthetic
clay liner (GCL) and the lower section will act as an in-heap pond. The heap leach
facility will operate year-round, with heating of barren cyanide solution in the winter
as required.
Planned Site Layout
WASTE ROCK STORAGE
HEAP LEACH PAD
OPEN PIT
CRUSHERS
100 DAY STORAGE
EXPLOSIVES STORAGE
GOLD RECOVERY PLANT TRUCK STOP
CAMP
YUKON’S NEXT NEW GOLD MINE | | 9Infrastructure
The Project will require the development of a number of infrastructure items, including:
• Heap Leach Facility, to be progressively developed in three phases—one phase
during construction, and two phases during operations
• Dublin Gulch Diversion Channel, which is a major structure designed to relocate
the Dublin Gulch waterway around the Heap Leach Facility
• Fresh water supply systems to treat and distribute process water, fire water,
and potable water
• Access and site roads, including the upgrading of the existing 23 km Haggart
Creek access road
• Water management infrastructure, including an extensive series of diversion
ditches for both contact and non-contact water, two interceptor ditches, and
a series of water storage ponds and pumps
• Water treatment infrastructure, including a mine water treatment plant (MWTP),
detoxification facility, and potable and sewage treatment infrastructure
• Waste management systems, including sewage disposal and domestic waste disposal
• Ancillary facilities, including:
• Warehouse/truck shop/mine dry/first aid
• Cold storage/laydown
• Administration building
• On-site fuel storage
• On-site explosive storage
• Detonator magazine storage
• Assay laboratory
• Temporary and permanent 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 where a tap in point is available, approximately 25 km southeast
of the property
• Power distribution from the mine site substation to all facilities
• Process control and instrumentation
• Communication systems
10 | YUKON’S NEXT NEW GOLD MINE |Environmental Assessment & Regulatory Review The Yukon Environmental and Socio-economic Assessment Act (YESAA) assessment for the Eagle Gold Project is near completion with anticipated completion via receipt of a positive Decision Document in Q1 of 2013. The environmental assessment process in the Yukon is public. All documents relating to the assessment of the Eagle Gold Project are filed on the Yukon Environmental and Socio-economic Assessment Board (YESAB) online registry (www.yesab.ca). Additionally, a Water Use License and Quartz Mining License are required. When the environmental process has been completed Victoria Gold Corp. can then apply for a Quartz Mining Licence and a Type A Water Use License. These two licenses will regulate most of the Project’s activities. Commencement of construction will require receipt of the Quartz Mining License. Victoria Gold Corp. is currently preparing applications for the Quartz Mining License and Type A Water Use License via constant collaboration with Yukon Government, Yukon Water Board Secretariat, multiple Federal regulators and departments, and the First Nation of Na-Cho Nyak Dun. Applications will be submitted to Yukon Government and the Yukon Water Board respectively following the conclusion of the environmental assessment process. YUKON’S NEXT NEW GOLD MINE | | 11
Eagle Gold Project Development Timeline
0 9
10
Full
20 20 11 12 Production
20 20
June 011
r ty 013 2015
march R2
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12 14
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Detailed Schedule:
• Q1-2013 – YESAA Process complete
• Q2 2013 – Quartz Mining Licence Part 1 issued
• Q2 2013 – Water Licence Application
• Q2 2013 – Construction begins
• Q4 2014 – Construction complete
• 2015 – Full production
12 | YUKON’S NEXT NEW GOLD MINE |Health & Safety Policy
sustainability and Communities
At Victoria Gold Corp. we understand that health and safety is more than a series of
policies and procedures; it’s an essential part of our success. We believe:
• 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
These principles are endorsed by company officers and underpin our operating
commitment to the highest possible performance in health and safety.
We also believe 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.
Environmental Policy
Victoria Gold Corp. acknowledges that its activities can impact the environment, thus
it is our intention to act responsibly by demonstrating stewardship to 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 Gold Corp. 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 our environmental performance through regular
review and improvement of our 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; and
• Make this policy available to the public through our website
Victoria Gold Corp. is committed to exploring, building, operating and closing mines in an
environmental, socially and financially responsible manner.
YUKON’S NEXT NEW GOLD MINE | | 13Working with Local Communities Victoria Gold Corp. believes that the Eagle Gold Project must benefit and add to the sustainability of the Yukon. We will work to achieve socio-economic development through our agreements with the Na-Cho Nyak Dun and 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. Over the last 4 years we have held various community meetings, workshops, and open houses with the First Nation of 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 Gold Corp. also publishes the Potato Hills Press newsletter and continues to meet on a regular basis with the First Nation and the community. 14 | YUKON’S NEXT NEW GOLD MINE |
Comprehensive Cooperation
and Benefits Agreement
Victoria Gold Corp. 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 Gold Corp. 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 that are 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 the 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 the NND so
both parties can identify and pursue contracting and partnering opportunities
• Provide the NND with employment and training opportunities; and
• 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 will be responsible for the development of:
• NND Human Resource Registry; and
• NND Business Registry
These two registries will provide Victoria Gold Corp. and our 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. For more information please contact Natasha Young, NND
Liaison at 867- 996- 2265 or by email at natasha.young@nndfn.ca
YUKON’S NEXT NEW GOLD MINE | | 15Business Opportunities
COntracting
Victoria Gold Corp. has developed procurement and recruitment policies that reflect
our commitment to working with the NND, communities and local businesses. Our
policies will ensure that our hiring and contracting activities are completed in a
comprehensive, consistent and transparent manner and are reflective of commitments
defined in the CBA.
In keeping with Victoria Gold Corp.’s commitment to procure goods and services
locally, we will, in conjunction with the NND Business Registry, be developing a Victoria
Gold Corp. Yukon Business Registry. This Business Registry form may be obtained
from our Whitehorse office or downloaded from our web site.
16 | YUKON’S NEXT NEW GOLD MINE |Construction Phase Contracting Procedures
Victoria Gold Corp. will use a combination of tendering and sole sourcing to secure
companies to carry out the work to construct the Eagle Gold Project. Victoria Gold
Corp. retains the right to make independent decisions in a business like 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.
Victoria Gold Corp. has contracted an engineering firm to carry out detailed design and
procurement (EP Contractor) for the Eagle Gold Project. Victoria Gold Corp. will work
together with the EP Contractor to establish contract packages and bidders list.
To procure goods and services needed for the construction of the Eagle Gold Project
Victoria Gold Corp. and the EP Contractor 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 Gold Corp. with information concerning their company. Procurement for goods
and services will be done through the following process:
• EP Contractor will prepare bidders list
• Victoria Gold Corp. will review the bidders list and make final approval
• EP Contractor will issue a Request for Quotation/Request for Proposal to all
companies on the bidders list
• Bidders will send quotes to EP Contractor for technical, commercial
and comparison
• PFQ / RFP’s will request bidders include their companies local procurement,
local hire and training policies and programs
• EP Contractor will review the bids and prepare a technical and
commercial comparisons
• EP Contractor will select a recommended supplier for review
• Victoria Gold Corp. will make all final approvals
• EP Contractor will issue the purchase order or contract to the successful bidder
Note: Victoria Gold Corp. will provide the EP Contractor 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 Gold Corp.’s Whitehorse office.
YUKON’S NEXT NEW GOLD MINE | | 172013 Contracts Victoria Gold Corp. expects to receive the Quartz Mining Licence in Q2 of 2013. This will allow the company to commence with clearing and earth work preparation for some of the mine infrastructure sites. The following is a list of the proposed contracts Victoria Gold Corp. will be preparing to submit for quotes. Construction Camp Supply and Installation Currently Victoria Gold Corp. has a 100 person camp at site. The camp will be expanded to include another 300 beds and all components required to facilitate the expansion of the existing camp. Civil and Site Construction Timber clearing, grading, crushing and sorting of material required to prepare for the construction of roads, camp, the heap leach facility and other mine infrastructure sites. 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. Camp Catering, Janitorial and Maintenance Services: Providing catering, janitorial and camp maintenance services for the construction camp. Site Surveying: Surveyors will be required for site construction. Bus Service: Buses will be required to transport up to 50 people at a time from the Mayo airport to site. Airline Service: Victoria Gold Corp. is planning on chartering aircraft to transport employees and contractors between Whitehorse to Mayo. Security/Medical: An increase in the number of employees and contractors at site will require the company to hire security and medical contractors to service a 400 person camp. 18 | YUKON’S NEXT NEW GOLD MINE |
Contact Information
Vancouver Office Whitehorse Office
Suite 584 – Bentall Four 102 – 4149 4th Avenue
1055 Dunsmuir Street Whitehorse, Yukon Y1A 1J1
PO Box 49215 Canada
Vancouver, BC V7X 1K8 T: 1 867-393-4653
Canada F: 1 867-393-4654
T: 604-682-5122
F: 604-682-5232 www.vitgoldcorp.comYou can also read
