Victoria Gold‘s (TSX: VGCX) Eagle mine in Yukon, Canada, is facing charges following a significant accident at its heap leach pad (HLP) this week. The incident, which resulted in a landslide and potential cyanide leak, is the second such occurrence at the site this year, according to government officials.
The accident led to the suspension of operations at Eagle, Yukon’s sole producing gold mine. Two workers required first aid treatment, with one sustaining minor injuries. The charges against Victoria Gold relate to water management under Yukon environmental regulations and typically involve fines.
The full extent of the damage remains unclear, with investigators yet to determine the amount of contaminated water contained or released, as well as the cyanide content in the HLP ore at the time of the accident. It’s also uncertain whether any contaminated water escaped the property.
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Victoria Gold’s stock price plummeted by 84% following the incident, reducing the company’s market value to $71.8 million. With its only asset currently shut down, the company faces looming debt payments of $232.5 million, casting doubt on its future operations.
This latest incident follows a smaller landslide at the site in January, which occurred at an ore stockpile not being leached. Additionally, a previous accident in March 2021 resulted in a 17,000-liter spill of concentrate intended for the HLP, for which the company was fined.
Water samples have been taken from various sites at Eagle to test for potential cyanide contamination, with results expected within a week. While preliminary assessments suggest drinking water in the nearby community of Mayo is likely safe, more evidence is needed to determine water quality in streams near the mine.
Local First Nations, including the Na-Cho Nyäk Dun and White River First Nation, have expressed deep concern about the potential environmental impacts of the accident. They are conducting their own water testing and calling for more significant action to address the situation.
The incident has reignited discussions about mine safety and environmental protection in Yukon, with some critics arguing that the territorial government’s focus on approving mines may come at the expense of thorough regulatory oversight.
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