It's full steam ahead for Victoria Gold's Eagle Gold project

The Eagle Gold Project in Yukon is on track and crews are gearing up for full production at the mine site near Mayo. The company president says it's going to be a busy summer.

Company says getting $505 million in financing was a make it or break it deal for the Yukon mine

Mike Rudyk · CBC News · Posted: Mar 13, 2018 5:33 PM EDT | Last Updated: March 13, 2018

The maintenance shop at Victoria Gold's Eagle Gold mine site, about 85 kilometres northeast of Mayo. (Victoria Gold)

Closing a $505 million deal with investors was tough, but the president of Victoria Gold, John McConnell, says persistence paid off.

Orion Mine Finance, Osisko Gold Royalties Ltd., and Caterpillar Financial came up with the bulk of the financing needed to move the Yukon's next gold mine forward.

Construction began last year, but now Victoria Gold has the cash needed to finish the job.

'It is a very important summer for us, we hope to get 60 to 70 per cent of the construction complete,' said the president of Victoria Gold, John McConnell. (Victoria Gold)

"It is a very important summer for us, we hope to get 60 to 70 per cent of the construction complete," said McConnell.

The company's Eagle Gold project is located about 85 kilometres northeast of Mayo. There will be two open pits, and gold will be recovered by a heap leach process.

McConnell says there will be roughly 250 contract employees working in a rotational schedule, meaning around 500 people at the camp.

"This year we will be certainly focused on the crushers getting the foundations and buildings in place," said McConnell.

"Same with the gold recovery plant, and through the winter we can do the interior work, the electrical, mechanical, but we will have closed structures to work in during the coldest months of the year."

Victoria Gold plans to process about 26,000 tonnes of ore per day. When in full production, the company expects the mine to produce 200,000 ounces of gold annually.

Opportunity for First Nations

There is probably more work than they can handle, but they are off to a good start.- John McConnell, Victoria Gold president

The Nacho Nyäk Dun First Nation has contracts to work at the mine, as well as various agreements with the company to provide training and scholarships for its citizens.

"There is probably more work than they can handle, but they are off to a good start. I think last year's program gave them a good test of what it's like," said McConnell.

He says there is lots of opportunity for other First Nation development corporations in Yukon as well.

"We had almost ten years to plan this, and work with the First Nations, work with the regulators, and I hope it all comes together and we are pouring gold in 2019," said McConnell.