• Victoria Gold (VGCX) is a TSX-listed company operating the Eagle Gold Mine in Canada's Yukon Territory with a market cap of around 1.1 billion Canadian dollars.
• Despite challenges like COVID-19 and mechanical issues, the mine is on track to meet its annual gold production guidance of over 280,000 ounces.
• The company is pursuing an internal project, "250k," to reach 250,000 ounces of annual gold production by 2023.
• Q3 results were as planned, producing over 50,000 ounces, putting the company on track to achieve over 180,000 ounces for the year.
• Victoria Gold is focused on increasing production by extending the stacking season, screening off fine material, and planning further exploration while managing debt and discussing dividends with institutional shareholders.

‍About Victora Gold

Victoria Gold Corp. is a Canada-based precious metals mining company focused on gold production and exploration in Yukon Territory. With its flagship Eagle Gold Mine now operating at full capacity, Victoria aims to become a mid-tier gold producer while maintaining a strong balance sheet.

Interview with President & CEO John McConnell

Eagle Mine Hits Stride After Early Challenges

The Eagle Gold Mine achieved commercial production in Q2 2020 after completing construction on budget and ahead of schedule. However, the initial ramp-up faced some hurdles. According to President and CEO John McConnell, COVID-19 restrictions and mechanical problems impeded operations in the first year. Despite these setbacks, Eagle is now running smoothly and on track to meet full-year guidance of over 180,000 ounces for 2021.

Q3 production totaled 55,827 ounces, bringing year-to-date output to just under 115,000 ounces. McConnell expects a significant increase in Q4 based on performance in recent months. August and September yielded over 20,000 ounces each, putting Eagle in a good position to exceed guidance.

Expanding Production Through Low-Risk Optimization

Buoyed by Eagle's turnaround, Victoria is pursuing an optimization program called "250K" to boost annual production to 250,000 ounces in 2023. This will be achieved through two main initiatives, both involving operational changes rather than major capital projects.

First, the company will extend the stacking season from 9 months to 11 months per year. Avoiding the coldest month of January will facilitate continuous stacking while still allowing for plant maintenance.

Second, Victoria plans to screen out fine material from a shear zone at the secondary crusher and direct transport it to the leach pad. This will increase crushing capacity by 20% and contribute around 30,000 additional ounces. Detailed engineering is underway, with construction starting in Q2 2022 and commissioning beginning in Q3 2022.

Strong Cash Flows Accelerating Debt Repayment

With Eagle generating robust cash flows at current gold prices, Victoria is focused on strengthening its balance sheet. The company aims to reduce debt below $100 million by mid-2022, down substantially from around $190 million presently. Victoria has already made voluntary repayments of over $20 million this year.

The debt repayment strategy will provide financial flexibility for potential dividends, acquisitions, and organic growth initiatives. Victoria is taking a prudent approach, with the board intently focused on efficient capital allocation.

Exploring Regional Potential to Extend Mine Life

Beyond Eagle, Victoria holds an extensive land package covering other prospective areas of Yukon's mineral-rich geology. The company recently increased its regional exploration budget to systematically evaluate satellite targets.

Drilling at the high-grade Raven deposit and other nearby occurrences is pending assay results delayed by backlogs at the lab. Once complete, this data will provide valuable information about potential minelife extensions and new discoveries. Additional exploration updates are expected over the next 6-12 months.

Disciplined Strategy Positions Victoria for Long-Term Growth

With Eagle operating at full tilt, Victoria Gold has an efficient platform to fund organic growth and shareholder returns. The company's disciplined approach aims to create value through measured expansion of resources, production, and cash flow. For investors seeking leverage to rising gold prices with minimal risk, Victoria offers an attractive opportunity.

Conclusion

With clear visibility on achieving guidance for 2021, Victoria Gold is executing well and building momentum after a challenging start-up phase. Progress on the 250K expansion and ongoing exploration success could drive significant upside for shareholders in the next 12-24 months. Investors looking for exposure to a pure-play gold producer with assets located in a premier mining jurisdiction should take a close look at Victoria.