Victoria Gold Shares Drop After Landslide at Eagle Mine

Heap leach pad collapse raises questions about Yukon mining

The heap leach pad failure at Eagle has elicited concerns from the community and local government, and questions have been raised about how the incident could impact the future of mining within the territory.

"'Catastrophic' would probably be, from what I'm hearing, would probably be a good way to describe it," said Mayor Trevor Ellis of Mayo, Yukon, in an interview with CBC on Tuesday (June 25).

Environmental concerns regarding the heap leaching process, which involves percolating a cyanide solution through ore to extract gold, have also come to the fore in the wake of this week's accident. If containment measures fail, such chemicals can potentially impact water sources and ecosystems in the vicinity.

As it stands, the future of the Eagle mine, which is a cornerstone of Yukon's mining industry, is up in the air.

Ellis, who was involved in initial planning discussions for the property's development, expressed concerns that a prolonged shutdown could jeopardize the mine's long-term viability.

Politicians have also weighed in on the issue, with Yukon NDP leader Kate White calling it an "appalling and deeply concerning." White, who is the NDP's mines critic, pointed to previous mining projects in Yukon that have faced environmental challenges after operations ceased, cautioning against repeating history with the Eagle mine.

The Yukon government, meanwhile, faces mounting pressure to ensure robust regulatory oversight and environmental protection measures in the aftermath of the incident. The heap leach pad failure has reignited debates over the sustainability and safety of mining practices in the region, exemplified by the abandoned Faro, Wolverine and Minto mines — all of which are currently under government receivership.

Financially, the impact has been substantial for Victoria Gold, with the company's share price plummeting approximately 80 percent in the days following the accident at Eagle.