Victoria Gold begins diamond drilling at Olive zone

2014-05-20 15:29 ET - News Release

Mr. John McConnell reports

VICTORIA INITIATES DRILLING TO TEST HIGH GRADE TARGET ADJACENT TO EAGLE PROJECT

Victoria Gold Corp. has commenced diamond drilling at the Olive zone, adjacent to Victoria's Eagle gold deposit, in Yukon, Canada.

The exploration program at the Olive Zone has been designed to meet the following objectives:

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• Trenching in 1991 that averaged 1.2 grams per tonne gold over 97.6 metres;
• Diamond drilling in 1991 intersecting 1.08 grams per tonne gold over 89.9 metres (91-012C);
• Diamond drilling in 2010 intersecting 1.93 grams per tonne gold over 20.3 metres (DG10-384C);
• Diamond drilling in 2012 intersecting 2.69 grams per tonne gold over 26.5 metres (DG12-531C).

Phase 1 of the 2014 program includes 3,000 metres of diamond drilling. Preliminary metallurgical testing demonstrated the Olive zone is amenable to heap leaching and a comprehensive test program will also be conducted. John McConnell, president and chief executive officer of Victoria, commented: "We believe the Olive zone, within sight of Eagle, will be a meaningful value add complement to the proposed Eagle gold mine and intend to demonstrate this potential with this 2014 targeted exploration program. The company is capitalizing on the current competitive pricing environment, with respect to drilling and support services, and will continue to manage its cash prudently. Victoria currently holds approximately $23-million in cash and receivables."

The Olive zone target is defined by a broad gold-arsenic-in-soils geochemical anomaly, lies on the intrusive-sediment contact of the Potato Hills trend (as does the Eagle deposit) and is punctuated by several historically exploited high-grade sulphide veins. The Olive area was mined on a small scale from shallow shafts and adits in the early 1900s and via placer mining in creeks draining the area. The Olive vein system is located near the top of Olive Gulch and consists of gold-bearing quartz-scorodite-arsenopyrite vein material.

The technical content of this news release has been reviewed and approved by Paul D. Gray, PGeo, as the qualified person.

About the Dublin Gulch project

Victoria Gold's 100-per-cent-owned Dublin Gulch gold property is situated in the central Yukon Territory, Canada, approximately 375 kilometres north of the capital city of Whitehorse and approximately 85 kilometres from the town of Mayo. The property is accessible by road year-round, and is located within Yukon Energy's electrical grid. The company has constructed a 100-person all-season camp at the project site.

The property covers an area of approximately 555 square kilometres and is the site of the company's Eagle gold deposit. The Eagle gold deposit is expected to be Yukon's next operating gold mine and includes probable reserves of 2.3 million ounces of gold from 92 million tonnes of ore with a grade of 0.78 gram of gold per tonne, as outlined in a National Instrument 43-101 definitive feasibility study. The NI 43-101 mineral resource has been estimated to host 222 million tonnes averaging 0.68 gram of gold per tonne, containing 4.9 million ounces of gold in the indicated category, inclusive of probable reserves, and a further 78 million tonnes averaging 0.6 gram of gold per tonne, containing 1.5 million ounces of gold in the inferred category.