Victoria Gold has secured a quartz mining license (QML) from the Yukon Government for its Eagle gold project, in Canada.
The project includes probable reserves of 2.3 million ounces of gold contained in 92 million tonnes of ore with a grade of 0.78 grams of gold per tonne.
The QML will enable the company to start site preparation and construction activities at their Dublin Gulch property, 85km north of Mayo.
Victoria Gold plans to complete construction of the mine in 2015 pending further approvals and start mining operations in 2016.
Once operational, the mine will have an open pit with a production rate of about ten million tonnes a year of ore.
The mine, which is expected to have a life span of about ten years, will use a three stage gold extraction process of crushing, heap leaching and carbon absorption.
Yukon Minister of Energy, Mines and Resources Scott Kent said working cooperatively with the federal government, First Nation governments and the mining and resource-development industry is a priority for the government.
"This approach is aimed at creating new investment opportunities while creating a climate for growth with current investors," Kent said.
Merit Consultants, which was involved in the project's feasibility study, will also undertake construction management of the mine.
Victoria Gold president and CEO John McConnell said securing QML for the project is a milestone for the company.
"With the granting of the QML, Eagle is now one of the few major gold projects in the world in a first class jurisdiction that is shovel ready, pending financing," McConnell said.
Image: Yukon Minister of Energy, Mines and Resources Scott Kent. Photo courtesy of Yukon Legislative Assembly 2013.