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Target Price Raised on Gold Company Post Feasibility Study Release
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Highlights of that document and the mine ramp-up are presented in a BMO Capital Markets report.

In a Dec. 18 research note, analyst Andrew Mikitchook reported that BMO Capital Markets increased its target price on Victoria Gold Corp. (VIT:TSX.V) to CA$14 per share from CA$12 "to reflect the updated feasibility and ramp-up progress at Eagle," a gold project that is "flying toward commercial production."

The company's current share price is CA$8.12. BMO has an Outperform rating on Victoria.

In his report, Mikitchook presented the highlights from the recently filed feasibility study and a technical session with Victoria management to discuss it. The report outlines a 20% increase in reserves totaling 3.3 million ounces and an addition of 766,000 ounces (766 Koz) in the Measured and Indicated category. These increases were "primarily driven by the new resource estimation parameters resulting in a larger resource," the analyst explained.

As for Victoria's Eagle gold project, ramp-up is now about 75% complete, noted Mikitchook, and the mine is on track for commercial production in Q1/20. So far, about 2.3 million tons of the 3.0 million ton goal have been stacked. By year-end, Victoria will be close to reaching that mark, according to management. Stacking will continue into January, and that extra month will boost the production rate outlined in the mine plan by 10%.

Management also indicated that "early results show good correlation between the blast hole sampling grades and the resource model," Mikitchook pointed out.

Looking forward, he concluded, "In our view, 2020 is a potential breakout year for Victoria Gold that should drive a rerating as it aims to achieve commercial production in Q2/20 and graduate to a producer targeting roughly 205 Koz by year-end 2020."

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Disclosures from BMO Capital Markets, Victoria Gold, December 18, 2019

IMPORTANT DISCLOSURES

Analyst's Certification
I, Andrew Mikitchook, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

Company Specific Disclosures

Disclosure 1: BMO Capital Markets has undertaken an underwriting liability with respect to Victoria Gold within the past 12 months.

Disclosure 2: BMO Capital Markets has provided investment banking services with respect to Victoria Gold within the past 12 months.

Disclosure 3: BMO Capital Markets has managed or co-managed a public offering of securities with respect to Victoria Gold within the past 12 months.

Disclosure 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from Victoria Gold within the past 12 months.

Disclosure 6A: Victoria Gold is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: A) Investment Banking Services

Disclosure 16: A research analyst has extensively viewed the material operations of Victoria Gold.

Disclosure 17: Victoria Gold has paid or reimbursed some or all of the research analyst's travel expenses.

For Important Disclosures on the stocks discussed in this report, please click here.





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