Whitehorse contractor begins work on long-awaited Victoria Gold project

The Eagle Gold deposit in central Yukon will be transformed into an open pit gold mine employing up to about 400 people.

The Eagle Gold deposit will be transformed into an open pit gold mine employing up to about 400 people

Victoria Gold's Eagle Gold deposit is in central Yukon about 85 kilometres northeast of Mayo. (YESAB)

A Whitehorse based contractor is moving heavy equipment into Victoria Gold Corporation's Eagle Gold project this week to begin construction of an open pit mine.

Pelly Construction is doing the primary construction on the mine, said Pelly's vice-president of community relations, Jennifer Byram.

"We will start building the access road to the heap leach pad and the mine itself and around the mine site," Byram said. Pelly Construction will also build the heap leach pad.

The gold mine is 85 kilometres northeast of Mayo in central Yukon.

Its owner, Victoria Gold, says it will employ up to 400 people with plans to begin pouring gold in 2019.

Pelly Construction is beginning with 30 people onsite, but will ramp up to 120, Byram said.

"Our client Victoria Gold was very insistent that we hire as many Yukoners as we could," she said.

"They are really invested in the Yukon and they want to make sure we train and hire Yukoners first and I think that is important," Byram said.

Victora Gold had hoped to be at this point several years ago, but saw its plans delayed in 2013 when a severe slump in the mining industry dried up investment money.

With files from Mike Rudyk