Victoria Gold Corp. (Victoria) provides an update on the ongoing incident at the Eagle Gold Mine's heap leach facility (“HLF”).
The company remains steadfast in prioritizing employee safety and environmental protection. As previously reported, Victoria is maintaining open communication with the Yukon government, the First Nation of Nacho Nyak Dun (“FNNND”), the Village of Mayo, the Yukon Workers' Safety and Compensation Board, and other relevant authorities.
Mitigation
Regarding environmental mitigation, as previously disclosed, a pumping system was set up to return water from the HLF material to lined containment ponds within hours of the incident. Additionally, diversion systems for managing contact and non-contact water and material have been installed.
Water Sampling
Victoria actively gathers water samples every day at the Eagle mine from a number of sample locations. A number of these sample sites are situated downstream from the HLF incident site. The final results, obtained after the Company's news release dated July 4, 2024, revealed that one downstream sample result from Haggart Creek collected on July 2, 2024, had one trace detection of cyanide; the sample measured 5.7 parts per billion total CN. Samples taken at this location on July 2 and later on July 3 and July 4 did not show any signs of cyanide.
The Company received final results from all water quality objective sampling locations, including samples collected up to this point, and no other detection of cyanide, save from this one sample, was made. To be clear, based on the final sampling results received, the Company has not exceeded its downstream water quality objectives as per its water use license.
Heap Leach Facility and Infrastructure
About 38.9 million tons of ore have been piled on the HLF since production began. The Company estimates that 4 million tons of ore, or about 10% of the total ore tons within the HLF, moved during the HLF incident based on an independent survey of the HLF.
The Company calculates that of these 4 million tons, about half, or 2 million tons, moved beyond the HLF embankment, or roughly 5% of the total ore tons within the HLF. An impartial third party is evaluating the plan that the Company has devised to stabilize the HLF.
The HLF incident did not affect most of the on-site infrastructure. The incident had no effect on the Eagle open pit, related mobile equipment and mining infrastructure, primary, secondary, and tertiary crushers, main overland conveyor, ADR plant, lined water containment ponds, water treatment plant, warehouse facilities, camp, or office complex.
According to observations made thus far, the HLF embankment, piping, pumping, liner, two brief sections of fixed conveyors, and a small amount of electrical infrastructure are among the on-site infrastructure on or near the HLF that has been affected.
Root Cause Analysis
Investigations are in progress to ascertain the incident's cause. In addition to working with outside technical experts hired by the FNNND and the Yukon government, the Company has contacted its engineer of record for the HLF.
Production is still halted, and it cannot begin again without the Yukon Director of Mineral Resources' approval. Victoria will keep up its efforts to reduce environmental effects while putting worker safety first. It is impossible to guarantee that the business will obtain the approvals required to resume operations or that it will have the funds required to fix facilities and equipment damage, address incident-related effects, or resume operations. In due course, the company will provide more updates.