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Victoria Gold Provides Update on 2017 Dublin Gulch Exploration Campaign

Victoria Gold Corp. is pleased to announce the receipt of additional analytical results from the on-going 2017 Dublin Gulch exploration campaign. These latest results are from the 11 exploration drill holes completed on the Catto Zone. Located between the Eagle Gold Mine and the Olive-Shamrock Deposit, the Catto Zone was the location of historic high-grade gold mines and has seen only cursory contemporary mineral exploration.

Highlighted results from the 2017 Catto Zone drilling include:

  • 24.4 m of 1.64 g/t Au in drillhole DG17-867C from 33.5 to 57.9 m
  • 21.4 m of 0.99 g/t Au in drillhole DG17-892C from 138 to 155 m
  • 7.4 m if 1.19 g/t Au in drillhole DG17-888C from 119.6 to 127.0 m
  • 1.4 m of 4.51 g/t Au in drillhole DG17-873C from 160.0 to 161.4 m

"Catto has long been a target we were looking forward to test," commented John McConnell, President and CEO of Victoria. "Not only does this Zone fit well into the Potato Hills Trend model, it hosts several historic past gold producers and has not seen any modern, systematic drill efforts to test for additional gold ounces. Catto is just one of many similar known gold mineralized targets on the Dublin Gulch Property which we continue to explore."

The Catto Zone lies just Southwest of the Olive-Shamrock Deposit, across Olive Gulch. Exploration was designed to test for potential on-strike extensions to the Olive-Shamrock mineralized shear zone and included 1,900m of diamond drilling from 11 drillholes as well as surface trenches. The program tested previously undrilled areas south and east of the granodiorite contact, within the Dublin Gulch Stock itself. 2017 Catto drillholes were collared on a topographic high (ridge) to test the near surface potential of this emerging mineralized zone. Encouraging results were received from these initiatives and a summary from the 11 Catto Zone drillholes are outlined in the table below:

Hole ID From (m) To (m) Length (m) Gold (g/t) Silver (g/t)
DG17-863C 85.8 89.5 3.7 1.09 -
including 85.8 87.6 1.8 2.06 -
DG17-867C 33.5 57.9 24.4 1.64 -
including 35.7 37.3 1.7 6.12 -
and including 48.4 50.3 1.9 14.65 14.80
and including 82.7 83.8 1.1 1.13 -
DG17-868C - - - - -
DG17-871C 33.5 43.3 9.8 0.43 -
including 40.0 41.6 1.5 1.38 1.50
DG17-873C 29.3 30.5 1.2 0.92 8.60
and 67.5 68.5 1.0 1.09 11.70
and 157.0 163.1 6.1 1.15 1.12
including 160.0 161.4 1.4 4.51 2.30
and 204.5 205.4 0.9 1.95 52.80
DG17-878C - - - - -
DG17-881C 27.5 32.0 4.5 0.99 3.76
including 27.5 29.0 1.5 2.68 5.40
and 38.1 39.6 1.5 0.91 -
and 65.9 67.6 1.8 1.02 3.50
DG17-885C 28.0 29.8 1.8 0.96 6.10
and 170.3 171.8 1.5 0.86 -
DG17-888C 66.1 73.1 6.9 0.94 -
including 71.3 73.1 1.7 3.73 -
and 119.6 127.0 7.4 1.19 -
including 119.6 121.6 2.0 3.08 1.00
DG17-892C 37.2 40.7 3.5 0.94 18.41
including 38.9 40.7 1.8 1.51 31.90
and 83.5 84.7 1.2 8.76 -
and 114.5 116.1 1.6 1.22 1.50
and 133.8 155.2 21.4 0.99 1.13
including 133.8 135.3 1.5 11.60 2.10
and including 153.5 155.2 1.7 1.47 -
DG17-895C 22.57 24.38 1.81 0.98 10.60
including 49.46 50.85 1.39 1.32 15.50

*Apparent true widths are estimated at approximately 70% to 80% of intersection lengths

The geology underlying the Catto Zone is similar to the Olive-Shamrock deposit to the north and consists of a stratigraphic sequence of quartzites, schists, and phyllites which has been intruded by the Dublin Gulch Stock. A gently dipping homocline striking roughly north controls the metasedimentary lithologies and close to the granodiorite-metasedimentary contact variably developed hornfels are common. Faulting and shearing is well-developed in and around the contact zone and parallel milky white quartz, quartz-sheelite and quartz-aresenopyrite-scorodite veins are seen in association with the contact zone.

The Catto Zone has seen sporadic exploration since the early 1900's and is the site of multiple open-cuts, shafts and adits from high-grade gold past-producers; including the Green Vein Tunnel, the Cabin Vein Tunnel and the Victoria Vein Adit. These proven, quartz vein-hosted, high-grade gold mineralized targets suggest a contact-related gold mineralized system located only 300m from the southeast portion of the Olive-Shamrock Deposit.

Historic grab samples from the Catto Zone have returned highly anomalous precious metals results, indicative of the tenor of high-grade past producers, including those outlined in the table below:

A plan map and full set of cross sections for the Catto 2017 drilling campaign will be made available on the Company website.

Prospect Au (g/t) Ag (g/t)
Catto 35.7 10.5
Catto 17.9 65.4
Catto 15.3 33.1

About the Dublin Gulch Property

Victoria Gold's 100%-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 and maintains a 210 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 Mine is expected to be Yukon's next operating gold mine and, between the Eagle and Olive deposits, include Proven and Probable Reserves of 2.7 million ounces of gold from 123 million tonnes of ore with a grade of 0.67 grams of gold per tonne, as outlined in a National Instrument 43-101 feasibility study. The NI 43-101 Mineral Resource for the Eagle and Olive deposits has been estimated to host 191 million tonnes averaging 0.65 grams of gold per tonne, containing 4.0 million ounces of gold in the "Measured and Indicated" category, inclusive of Proven and Probable Reserves, and a further 24 million tonnes averaging 0.61 grams of gold per tonne, containing 0.5 million ounces of gold in the "Inferred" category.

Analytical Method

All exploration drill core from the 2017 program was logged and prepared for shipment on-site and Victoria's Eagle Camp where they were subsequently delivered to the Whitehorse, Yukon, sample preparation facility of ALS Minerals. There, samples were crushed with prepared samples sent to ALS Minerals' preparation laboratory facilities in Vancouver where they were analyzed by 33 element ICP-AES package ME-1CP61 with a 50 gram Fire Assay Au finish (AU-AA24). A comprehensive system of standards, blanks and field duplicates was implemented for the 2017 Dublin Gulch drilling programs and is monitored as chemical assay data became available.

Qualified Person

The technical content of this news release has been reviewed and approved by Paul D. Gray, P.Geo., as the Qualified Person.

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