- Victoria Gold (TSX:VGCX) provides an update on the heap leach facility incident that took place at the Eagle Gold Mine on June 24
- As previously indicated there were no injuries associated with the incident and the company has been focused on the continued safety of its employees
- The company continues to work with the Government of Yukon, the First Nation of Nacho Nyak Dun, the Village of Mayo, the Yukon Workers’ Safety and Compensation Board and other authorities
- Shares of Victoria Gold are up 22.99 per cent to C$1:07 as of 12:42 pm ET
Victoria Gold (TSX:VGCX) announced that no cyanide has yet been detected downstream since the June 24 landslide and failure of a heap leach pad at the Eagle Gold Mine in Yukon Territory.
As reported last week, the site sustained infrastructure damage and no injuries were associated with the incident.
“With respect to environmental mitigation, within hours of the incident a pumping system was established to return water from the (heap leach facility) material to lined containment ponds,” Victoria Gold stated in a news release. “Diversion systems have also been installed for the management of both non-contact and contact water and material. To date, continued environmental surface water quality sampling at multiple points downstream of the property has not detected any cyanide.”
The company stated it expects to provide more information by the end of next week, and it continues to work with the Government of Yukon, the First Nation of Nacho Nyak Dun, the Village of Mayo, the Yukon Workers’ Safety and Compensation Board and other authorities.
Victoria Gold’s news release revealed that it has received notices of default from its lenders under the credit agreement dated Dec. 18, 2020. Production at the mine remains suspended with previous 2024 production and cost guidance forecasts retracted.
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 cost guidance of US$1,450-US$1,650 per ounce of gold sold in 2024.
Victoria Gold is a Yukon-focused mining company engaged in gold production and exploration.
The company’s flagship asset is its 100 per cent owned Dublin Gulch property, which includes the Eagle Gold Deposit, the Olive Deposit, Raven Gold Deposit, the Wolf Tungsten Deposit, the Potato Hills Trend, including the Nugget, Lynx, Popeye, Rex-Peso, East Potato Hills, Eagle West, Falcon, as well as other targets.
Shares of Victoria Gold (TSX:VGCX) are up 22.99 per cent to C$1:07 as of 12:42 pm ET.
Join the discussion: Find out what everybody’s saying about this gold stock on the Victoria Gold Corp. Bullboard, and check out Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top photo of Victoria Gold Corp. President and CEO John McConnell: File)
