By Canadian Press

Firm says production may never resume at Yukon gold mine after ore-slide disaster

Jul 12, 2024 | 3:50 PM

MAYO, YUKON, CANADA — The Victoria Gold mining company says it’s uncertain if it will ever resume production or if it has the financial resources to repair damage and fix the environmental impact of last month’s ore-slide disaster at its Eagle Gold mine in Yukon.

The company also says in an update that there’s “no assurance” it will receive the authorizations necessary to restart production either.

It says it’s co-operating with technical experts hired by the Yukon Government and the First Nation of Nacho Nyak Dun as they investigate the cause of the June 24 disaster at the mine about 500 kilometres north of Whitehorse.

A Yukon government expert previously said 300 million litres of cyanide solution escaped containment at the mine after an ore slide at a heap-leach facility that uses the solution to extract gold from ore.

Victoria Gold says in a statement Friday that a single water sample taken from Haggart Creek downstream of the mine on July 2 had shown an elevated cyanide level.

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It says that, based on a later July 4 sampling, the firm has not exceeded allowable levels according to its water-use licence.

Victoria Gold said in a previous statement that it had received notices of default from its lenders under a 2020 credit agreement.

This report by The Canadian Press was first published July 12, 2024.

The Canadian Press