Mining News: Northern Neighbors: Victoria secures heavy equipment for Eagle

Victoria Gold Corp. March 28 said it has entered into an agreement with Finning (Canada), a division of Finning International Inc., to supply the mining fleet for its Eagle Gold mine project in the Yukon. A feasibility study completed in 2016 outlines plans for two open-pit mines with in-valley leach pads that is anticipated to produce 190,000 ounces of gold annually over 10 years of mine life. The Caterpillar mining fleet Finning is to supply this operation will include two 6040FS hydraulic shovels, 11 785D (150 ton) off-highway trucks and other auxiliary mining equipment. The total cost of this fleet will be roughly US$50 million. A deposit is being made upon signing with further payments due upon delivery. “Through this agreement, we were able to secure more favorable pricing and terms than estimated in our recent feasibility study and we have managed to further derisk the Eagle Gold project without compromising our strong balance sheet,” explained Victoria Gold President and CEO John McConnell. The first equipment is expected to arrive at the Eagle project later this year and the full fleet should be delivered by fall 2018. Victoria and Finning have further agreed to identify opportunities for used auxiliary Caterpillar equipment as well as delivery date guarantees.

-Shane Lasley