Victoria Gold Shares Eagle Mine Update, Warns Restarting Production May Not be Possible

The Yukon government has reaffirmed its commitment to address the heap leach pad failure and landslide at the Eagle gold mine, and to resolve the environmental and safety concerns raised by the incident.

In a statement released on Thursday (July 11), John Streicker, the territory's minister of energy, mines and resources, emphasized the local government's goal of protecting the region’s land, water and communities.

“The heap leach failure at Victoria Gold's (TSXV:VGCX,OTC Pink:VITFF) 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,” he said.

The Yukon government has mandated that Victoria Gold implement several measures under an inspector’s direction.

These include installing groundwater interception lines at Dublin Gulch to manage water flow below the slide, stabilizing the slide area beneath the heap leach embankment, expanding surface water and groundwater monitoring and putting a comprehensive water treatment plan together. Dublin Gulch encompasses the Eagle mine and adjacent prospects.

In a Friday (July 12) press release, Victoria Gold explained it has been working closely with the Yukon government and other local stakeholders to address the situation. The company has implemented a pumping system to return water from the heap leach facility to lined containment ponds and installed diversion systems to manage water flow.

Additionally, the company is conducting daily water sampling at multiple locations, including downstream areas, to monitor for contaminants. Only one trace detection of cyanide has been reported and it was below harmful levels.

Victoria Gold has also announced plans to stabilize the heap leach facility and is working with independent experts to ensure the safety and integrity of the site. However, the company said there is no guarantee that it will receive permission from the Yukon government to reopen Eagle, or that it will have the financial resources to do so.

The Eagle mine landslide, which occurred on June 24, involved the failure of the heap leach pad at the site. It has led to concerns about water pollution due to the potential release of cyanide and other contaminants.

Streicker said the Yukon government will provide regular updates as the situation progresses. "I would like to thank everyone involved in gathering, analyzing and sharing information so that Yukoners can remain informed about efforts underway and next steps and are better able to understand what this means for the territory," he added.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.