Victoria Gold Corp VITFF

NOT GOOD!

[crazytimes]

Victoria Gold may not survive landslide crisis, source believes - The Yukon Star

[Dutch1Tulips]

Wow amazing journalism just add more noise .  How do we even know if this unknown source  is credible Where are they getting their information  If the entire scope of the incident is still not known, how can you say they company will become insolvent .  They shouldn't post these unsubstantiated claims. If there is a pathway for this company why can't they seek

[rkhosla]

This is the photo I was referring to attached to the article that you sent. Study it carefully. It tells the story well.  There is water pouring out everywhere.   I would guess they are going to need to run their gold recovery plant simply to manage the water are they not? They can't just store all the water without processing it can they?  

[rockport1]

I agree, it appears there are fluid flows everywhere.  How can they say this was contained?  Perhaps, the surface fluids are "contained" in that they are being directed to where they want. BUT, what about the fluids leaking into the ground?  Obviously, the fluids are not contained within liner pads like they used to be on the heap leach pad. The heap leach fluids must be

[crazytimes]

rk.. thanks. What a mess. It is not completely clear in the article how current the $70 mil in payables is, or if that even includes upcoming debt payments, or if they have already missed one. If they only have $40 in cash, if you factor in what must be considerable current cash burn.....wouldn't you need a raise and soon to avoid total ........... fill in the blank?  Just my opinion

[mdjbrown]

Thanks for this crazy. "The day of the landslide, there had been a piece of heavy equipment on the top of the heap pad – which should not have happened, the source said." The plot thickens considering that piece of heavy equipment now sits down the slide path of the hlp,  not on top of it.

[crazytimes]

mdj... yes, couldn't believe they referenced that! In addition I am guessing for the source to make that statement one would think they must have been on site that day? Just looked at old financials on page 2 and if you look at their cash on hand of $28 mill and accounts payable and acrued liabilities on page of approx. $75 million at that time it potentially lines up with the article? That

[crazytimes]

https://vgcx.com/site/assets/files/7648/vit_q1_mar24_fs_2024-03-31.pdf

[mdjbrown]

No doubt crazy.  I get the feeling the dozer operator may be the most important witness to this entire incident, and unfortunately things are going to get a lot more expensive as this story unfolds. 

[rkhosla]

I think this, and previous undisclosed infractions and deviations from operating permit, is why CEO is silent - afraid of going to jail.  And rightfully so.  Did they pile the thing too high? Did they put too much moisture content in it? Were they trying to smooth it out to hide what they had done? What exactly were the previous infractions? Were they piling it too high to try and

[Zibo510]

Wow rkhosla After expanding that picture and detailing it, there are streams of solution running everywhere, the whole slide  must be saturated with solution, and being absorbed into the ground.  At the bottom of the picture you can see where a berm has been washed out.  The only water testing so far I believe is the surface waters. I think they will have to install a series of

[mdjbrown]

Zibo, the picture angle is deceiving as the containment berm was located further back than the visible rectangular event pond. Not so sure the berm was taken out, as much as the slide material slid right over the berm into the containment valley leading into the lower event pond.

[Zibo510]

Must still be a lot of solution in the pad. Those streams are really flowing, a lot of hydraulic pressure. 

[mdjbrown]

That is the strange part as the sumps should be drawing any pregnated solution in the HLP downwards as I dont think they were damaged. Keep in mind the momentum of the slide from summit to base would have decimated the leach lines crisscrossing through out the pad, and likely pulled them over the berm with the material.   Not sure what combined volume they would contain, but likely a lot

[Zibo510]

Well if the leach lines got taken out, better chance than not that the liner has been compromised.  I would think regardless they will have to assume that the liner is damaged and have to be inspected before the pad could be re-commissioned, having to play it safe than sorry and removing the ore is a huge job.  Considering that currently the pad is unsafe, how long will it be before

[mdjbrown]

I may be one of the very few Zibo, but I dont think there will be much liner damage, as I still believe a summit of loose material came down sliding over the majority of the stationary HLP, and over the containment berm. Time will tell but my guess is the folks at VG are already very aware of what caused this slide. I also think the containment berm at the base will be built much higher than the

[rockport1]

If you look at the photo from this website, it looks to me like all the liner pads (dark grey) are hanging down the side of the upper slope above the slip. If I understand this photo correctly, there is no doubt that the liner pads are severely damaged.  Have I got this right? https://www.yukon-news.com/news/victoria-gold-shutdown-after-landslide-at-heap-leach-facility-7412502

[mdjbrown]

rockport1, it is difficult to ascertain due to the various angles of the photos, but there are a few before / after photos out there that show very little difference in movement liner wise.  Thanks to HB77, he found this document that is interesting https://emr-ftp.gov.yk.ca/emrweb/COMM/major-mines/eagle-gold/emr-mml-eg-heap-leach-facility-oms-manual-2020-01.pdf Unfortunately a

[mdjbrown]

rockport1, here is the best video that I have scene with identifiable markers in both the picture you referenced and this video.  https://vgcx.com/investors/video-library/eagle-mine-to-mint-2022/eagle-mine-to-mint-2022/ At about 2:20 and on for about a minute there is a good view of both natural vegetation markers and the gold recovery plant.  I just paused it for comparison. Really

[mdjbrown]

seen

[Zibo510]

I think you're probably right mdj I think the mine will survive because of the economic benefits it provides, I have my doubts that the current owners will be operating it. The wild card is FN, if they are serious about closing the mine that could be big trouble or at least a very lengthy delay in restarting the mine. Time will tell.

[MVargas]

I would concur that it is likely that Victoria wil never again be the operator of the Eagle Gold mine - regardless of who is at fault or how bad the situation is.  They don't have the financial capability to carry on as they have already defaulted on the debt. I don't know if just the Eagle mine and associated infrastructure was pledged as collateral against the debt or whether the

[OCB1234]

While I rolled my post-60% loss in Victoria (after being a VGCX investor for 16+ years by the way, UGH!) into Fresnillo plc, it would be a shame if this disaster caused the Yukon, considered one of the safest mining jurisdictions in the world, to be off limits for any new gold mining projects. 

[Swingandmiss]

OCB, I have to give you a lot of credit for having the cojones to follow your gut and sell when you did at a 60% loss. We were all WAY down, but it always looked like we would get back to even soon. No one could have predicted what would happen based on info we had at the time, but you were able to preserve 40% and move on. The rest of us were not that lucky.  Again, kudos to you and I

[OCB1234]

Swing, it wasn't easy but I grew tired of all the broken promises, especially the delays in drill results @ Raven possibly signaling that it would not eventually result in a 2nd mine. That being said, even though I am no longer a Victoria investor, I have always maintained my affinity for the company and, especially, my fellow retail investors on this board. I'm back here rooting for a

[HoneyBadger77]

MVargas. regarding your comment:   "I don't know if just the Eagle mine and associated infrastructure was pledged as collateral against the debt or whether the entire assets of the company are at risk.  If the former, then the company won't go to zero as they have other properties (Raven, Lynx, Brewery Creek, etc.) with an interest in Banyan and Sitka.  Management

[HoneyBadger77]

Further, have a look at Page 2, shareholder equity Retained Earnings of $113 million and Page 7, line items #5 and #7.  Item #5 have the choice to pay the balance for the Sabre assets acquisition in cash or shares Gee wonder which option they'll choose?  Item #7, total mineral inventory $183 million (should have been plenty of collateral for the $104 million bond).   Hold

[OCB1234]

Victoria mgmt has a lot of skin in the game so I can't imagine they would give up the company without a fight. Unless, of course, it can be proven the slide was directly caused by corporate malpractice, such as an overloading of the pad, and then they might be barred by the Yukon powers that be from operating the mine ever again. 

[Stratocheif]

Back about 10 years ago Barrick Gold had to walk away from a $5 BILLION investment at Pasqa Luma in Chile because the aboriginal Chileans complained the project MIGHT pollute thier water. Ingenious groups on Canada have even more power than places like that as our beloved Justine bows down to them and gives them billions whenever they ask for it. Don't underestimate this. If ground water

[Singoa58]

Well said....  No way in hell wiill mine ever reopen   ... we could be looking at billions in compensation down the road... im surprised its even trading at 79 cents... its zero value really

[steve55]

are you a member of FN community?

[HoneyBadger77]

No Steve, I don't live in Yukon.  Just letting Singola58 know that there will be a few more dead fish today in the world.  Wouldn't want to see Singola58 making predications that weren't true. Of course he/she wants the dead fish to be in a creek near the mine so he make some more cash on his short position.  Weird how some people try to make a buck during a '

[Zibo510]

I fail to see what you find funny about a few dead fish. That could be an indication that the problem maybe getting worse, and don't think that won't be front page news, and FN will be all over that. I don't know where you're going fishing but if you start seeing fish belly up around your fishing hole, are they going to put them in your frying pan?

[HoneyBadger77]

Zibo510, this is how the real world works.  My wife and I go fishing and we are not FN people so we get to spend about $50 to $100 dollars a day to go out fishing to catch $20 worth of fish.  We're each allowed 1 walleye that must be between 45 and 55 cms. Last year on two separate occasion I spoke with two different guys that came in with a cooler each full of walleye.  They

[mdjbrown]

OCB, there have been suggestions of overstacking, so it will be interesting to see if VG dialed back loading rates from 39,154 tpd to 29,500 tpd to accomodate year round stacking as per licensing requirements. If not, that would explain a lot, considering running an additional 3 months at at 39,154 tonnes per day would equate to 3.5 million tonnes in over stacking a year. Didnt 4 million tonnes