Victoria Gold (TSXV: GCX) is acquiring all of Sabre Gold Mines‘ (TSX: SGLD) assets located in the Yukon, which include the former-producing Brewery Creek mine as well as the Gold Dome and Grew Creek exploration properties.
Under an agreement sealed Thursday, Victoria will acquire Sabre’s wholly owned Yukon subsidiary, Golden Predator Mining, for a total consideration of $13.5 million. Victoria will initially pay $8.5 million, comprising $1.5 million in cash and $7 million in cash or shares at its choosing. The remaining will be paid in cash and possibly shares in two annual instalments.
“With the acquisition of Sabre’s Yukon assets, we are pleased to be expanding our footprint and asset base in our own backyard. With our track record of exploration, permitting, development and operations in Yukon, we believe we can add value to this portfolio of assets,” John McConnell, president and CEO of Victoria, commented in a news release.
Brewery Creek, the main asset under Golden Predator’s portfolio, is a heap leach project covering 181 km2 located approximately 55 km east of Dawson City. It is situated approximately 120 km west of Victoria’s Eagle gold mine, the largest in the territory.
The Brewery Creek property is the subject of a NI 43-101 technical report which sets out a mineral resource estimate of 34.5 million tonnes in the measured and indicated category grading 1.03 g/t gold, containing 1.14 million oz. of gold, and 36 million tonnes inferred grading 0.88 g/t gold, containing 1.02 million oz. of gold.
It is also the subject of a preliminary economic assessment dated Jan. 18, 2022, which outlined an after-tax net present value of US$112 million with an internal rate of return of 27.6%. The initial capital was estimated at US$105 million. Its payback period will be 2.6 years.
The Gold Dome property covers 95 km2 and is located approximately 25 km west of the village of Mayo, Yukon. The Grew Creek property covers approximately 135 km2 and is located on the Robert Campbell highway, approximately 6 km west of Ross River.
THIS ARTICLE WAS ORIGINALLY POSTED ON MINING.COM
