- Victoria Gold (TSX:VGCX) provided a update on the June 24 landslide and heap leach pad failure at its Eagle Gold Mine in Yukon Territory
- In an update on Friday, the company said it had been liaising with various regulatory authorities including the Government of Yukon, the First Nation of Nacho Nyak Dun, the Village of Mayo, and the Yukon Workers’ Safety and Compensation Board to address the situation
- Yukon mines minister John Streicker announced that the Department of Energy, Mines and Resources has directed Victoria Gold to stabilize the area where the slide occurred and to closely monitor surface and groundwater near the site
- Shares of Victoria Gold Corp. opened trading at $0.82 per share
Victoria Gold (TSX:VGCX) provided a update on the June 24 landslide and heap leach pad failure at its Eagle Gold Mine in Yukon Territory.
In an update on Friday, the company said it had been liaising with various regulatory authorities including the Government of Yukon, the First Nation of Nacho Nyak Dun, the Village of Mayo, and the Yukon Workers’ Safety and Compensation Board to address the situation.
Government response
Yukon mines minister John Streicker announced that the Department of Energy, Mines and Resources has directed Victoria Gold to stabilize the area where the slide occurred and to closely monitor surface and groundwater near the site. The Yukon government also indicated plans to tighten safety regulations for mining operations.
In a statement from the ministry, Victoria Gold is mandated to implement critical measures to safeguard our lands and waters, including developing plans to:
- Install groundwater interception lines in Dublin Gulch to manage water flow, including groundwater, below the slide in placer tailings
- Stabilize the slide area beneath the heap leach embankment
- Expand surface water and groundwater monitoring to assess and manage impacted areas
- Develop a comprehensive water treatment plan
“The heap leach failure at Victoria Gold Corporation’s Eagle Gold mine has the potential for significant environmental impacts, and Yukoners across the territory are justly concerned about what this means to the land, water, animals, economy and the way of life for Yukoners now and for generations to come,” minister Streicker explained in the statement.
The ministry also issued an inspector’s direction that orders the company to take immediate measures to increase its water storage capacity on site.
Last week, minister Streicker said samples taken from the mine’s site indicated a cyanide presence of 8.58 mg per litre, which is much higher than the allowed levels of 0.005 mg per litre or five parts per billion.
Company response and mitigation efforts
Within hours of the landslide, Victoria Gold claimd it had established a pumping system to return water from the heap leach facility material to lined containment ponds. Diversion systems were also installed to manage non-contact and contact water and material. The company has been conducting daily water sampling at multiple locations within the Eagle Mine, including several downstream from the incident site.
A landslide caused the incident, as initially reported by Yukon News. The company had reported that no cyanide was detected downstream since the landslide, but the ministry had uncovered a cyanide presence of 8.58 mg per litre, much higher than allowed levels.
The company admitted that a single trace detection of cyanide at 5.7 parts per billion was also recorded in Haggart Creek on July 2, but follow-up samples on July 3 and 4 showed no cyanide presence. No other cyanide detections have been reported at any water quality objective sampling locations as of July 10.
Ongoing investigations and stabilization plans
Investigations are underway to determine the cause of the heap leach facility incident. Victoria Gold has engaged its engineer of record for the heap leach facility and is cooperating with third-party technical experts retained by the Yukon government and the First Nation of Nacho Nyak Dun. Production operations remain suspended, pending authorization from the Yukon Director of Mineral Resources. The company stated it is committed to minimizing environmental impact and ensuring employee safety. However, its release stated, “There can be no assurance that the company will receive authorizations necessary to restart production, or that the company will have the financial resources necessary to repair damage to equipment and facilities or remediate impacts caused by the incident or restart production. “
Ore movement and infrastructure impact
Since the start of production, approximately 38.9 million tonnes of ore have been stacked on the heap leach facility. An independent survey estimates that approximately 4 million tonnes of ore, representing about 10 per cent of the total ore, moved during the incident. Of this, about 2 million tonnes moved beyond the heap leach facility embankment. Victoria Gold has developed a stabilization plan for the heap leach facility, which is currently under review by an independent third party.
Despite the incident, the company said majority of on-site infrastructure remains unaffected. This includes the Eagle open pit, associated mining infrastructure and mobile equipment, primary crusher, secondary and tertiary crushers, main overland conveyor, ADR plant, lined water containment ponds, water treatment plant, warehouse facilities, and camp and office complex. Affected infrastructure includes the heap leach facility embankment, piping, pumping systems, liner, two short lengths of fixed conveyors, and a small amount of electrical infrastructure.
About the project and Victoria Gold
The Eagle Mine is roughly 375 kilometres north of Whitehorse and began production in 2019. It is expected the mine will produce roughly 2.4 million ounces of gold over an 11-year mine life, including estimated production of 165,000-185,000 ounces at a cost guidance of US$1,450-$1,650 per ounce of gold sold in 2024.
Victoria Gold is a Yukon-focused mining company engaged in gold production and exploration.
Victoria Gold Corp. stock chart – Jan 2024 to July 2024.
Shares of Victoria Gold Corp. (TSX:VGCX) opened trading at $0.82 per share. Victoria Gold stock has fallen nearly 90 per cent in the past month.
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(Top photo showing an aerial view of Eagle Gold mine with extent of June 24, 2024, heap leach incident outlined in yellow: Victoria Gold Corp.)