The Canadian gold producer Victoria Gold (ISIN: CA92625W5072 / TSX: VGCX) achieved a record value of 35,312 ounces of gold in the third quarter of 2020, and thus in its first commercial production quarter! From the gold sales at an average gold price of 1,886 USD, an impressive 80 million CAD has already been earned.
Mining and processing activities continued to increase in the third quarter of 2020, which brings maximum production within reach. With a total of 6,407 tonnes of material mined, the company’s own mining expectations were exceeded. The mined and stocked ore already contained a high average grade of 0.86 g / t gold.
Gold Sales and Revenue from Gold Sales do not include royalty ounces delivered to Osisko Gold Royalties. 2. Average Realized Price per ounce is a non-IFRS performance measure and is calculated by dividing the Revenue from Gold Sales by the number of ounces sold for the period. Hedging gains / losses are considered a financial transaction and are not included in Average Realized Price.
Source: Victoria Gold
The tonnages stacked in the heap leach basin increased slightly in the third quarter of 2020 due to bottlenecks in the processing cycle, which caused gold production to be slightly lower than forecast. However, due to the excellent mining performance, this did not matter. It is positive that a weak point has been identified here, which is now being remedied. It should also be positively emphasized that ore has already been mined from one area, which will make future mining much easier.
Improvements in material handling within the process cycle will also continue and are already bearing the first fruits. Because thanks to what has been done so far, the processing reliability will be significantly improved and the layering of the ore and gold production will be optimized. In addition, both the gold content and the metallurgical recovery are to be further improved, which should bring the still young gold producers up in the ranking!
Source: Victoria Gold
President and CEO John McConnell rightly booked the past three months as:
“Another strong quarter in ‘ramping up’ the new mine, especially and given the additional unprecedented challenges related to COVID-19.”
Another record production and 2.7 million accident-free working hours when starting up a new mine under the most difficult “pandemic conditions” is more than just an outstanding achievement. Now the ‘ramp-up’ of the mine is entering the final phase, which means that the remaining weak points will be eliminated and further increases in production can be expected for the rest of this year and into 2021. That puts Victoria Gold in a comfortable position to become a leading gold producer in Canada!
Best regards and maximum success with your investments!
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