Bulldozers building dams at a mine site.
(Source: Yukon Territory government)
  • Victoria Gold (TSX:VGCX) has given an update from the government after the cyanide disaster from its Eagle mine in Yukon territory
  • The Yukon government wants to appoint a receiver over the company and its property and related relief under Ontario’s Courts of Justice Act
  • Dozens of dead fish were found in Haggart Creek near the Eagle mine site, likely killed by a discharge of contaminated water from the mine
  • Victoria Gold stock last traded at C$0.48 per share

Victoria Gold (TSX:VGCX) has given an update from the government after the cyanide disaster from its Eagle mine in Yukon territory.

In a news release Wednesday, the miner stated the Yukon government wants to appoint a receiver over the company, its property and related relief under Ontario’s Courts of Justice Act. The company stated it intends to oppose the application of the receiver.

The government elaborated on this, stating that dozens of dead fish were found in Haggart Creek near the Eagle mine site, likely killed by a discharge of contaminated water from the mine.

In a statement, the government explained that activities (other than fishing) that result in the death of fish are prohibited under the federal Fisheries Act and the Department of Fisheries and Oceans has ordered Victoria Gold to implement mitigation efforts, beginning with a series of fish barriers in various locations along the creek, upstream and downstream of the discharge location.

After the June 24 landslide and failure of a heap leach pad at the property, cyanide was detected in the river, prompting authorities to warn people to stay away from Haggart Creek.

Victoria Gold is a mineral explorer and producer focused on the Yukon. As of Dec. 31, 2023, the company’s Eagle and Olive deposits house 2.3 million ounces of gold in proven and probable reserves, 4.4 million ounces in measured and indicated resources, and 700,000 ounces in inferred resources. At the current price per ounce, these ounces represent almost US$18 billion in the ground.

Victoria Gold stock (TSX:VGCX) last traded at $0.48 per share. The stock has given back more than 90 per cent (C$7 per share) since news of the spill hit the markets June 24.

Join the discussion: Find out what everybody’s saying about this gold mining 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: Victoria Gold)


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