Announcement • Jul 12
Victoria Gold Corp. Updates on Eagle Gold Mine
Victoria Gold Corp. provided a further update on the heap leach facility incident that occurred at the Eagle Gold Mine on June 24, 2024 (see Company News Releases dated June 24, 2024 and July 4, 2024). Victoria’s focus continues to be on the safety of its employees and mitigation of harm to the environment. As previously reported, the Company has and will continue to liaise with the Government of Yukon, the First Nation of Nacho Nyak Dun (“FNNND”), the Village of Mayo, the Yukon Workers’ Safety and Compensation Board and other regulatory authorities. Mitigation: With respect to environmental mitigation, as previously disclosed, within hours of the incident a pumping system was established to return water from the HLF material to lined containment ponds. Diversion systems have also been installed for the management of both non-contact and contact water and material. Water Sampling: Victoria is actively sampling water daily from multiple sample locations at the Eagle mine. Several of these sample locations are located downstream from the location of the HLF incident. Final results received subsequent to the Company’s News Release dated July 4, 2024, showed one trace detection of cyanide in one of the downstream sample results from Haggart Creek collected on July 2, with the sample measuring 5.7 parts per billion total CN. Prior to July 2, and subsequently on July 3 and July 4, samples collected at this sample location did not detect any cyanide. Other than this one sample, there has been no other detection of cyanide in final results at any of the water quality objective sampling locations received as of July 10, 2024 by the Company, which include samples collected up to July 4, 2024. For further clarity, as of July 4, 2024, based on final sampling results received by the Company, the Company has not exceeded its Downstream Water Quality Objectives pursuant to its Water Use License. Heap Leach Facility and Infrastructure: Since the start of production, approximately 38.9 million tonnes of ore has been stacked on the HLF. Based on an independent survey of the HLF, the Company estimates that approximately 4 million tonnes of ore, representing about 10% of the total ore tonnes within the HLF, moved during the HLF incident. Of this 4 million tonnes, the Company estimates that approximately half, or 2 million tonnes of ore, representing about 5% of the total ore tonnes within the HLF, moved beyond the HLF embankment. The Company has developed a plan to stabilize the HLF which is under review by an independent third party. The majority of on-site infrastructure was not affected by the HLF incident. The Eagle open pit, associated mining infrastructure and mobile equipment, primary crusher, secondary and tertiary crushers, main overland conveyor, ADR plant, lined water containment ponds, water treatment plant, warehouse facilities, and camp and office complex were unaffected by the incident. Based on observations to date, on-site infrastructure on or near the HLF that has been impacted includes the HLF embankment, piping, pumping, liner, two short lengths of fixed conveyors, as well as a small amount of electrical infrastructure. Investigations are underway to determine the cause of the incident. The Company has engaged with its engineer of record for the HLF and is cooperating with 3rd party technical experts retained by the Yukon Government and the FNNND. Production operations remain suspended and may not restart without authorization from the Yukon Director of Mineral Resources. Victoria will continue to work to minimize impacts to the environment, with the safety of employees as a foremost priority. There can be no assurance that the Company will receive authorizations necessary to restart production, or that the Company will have the financial resources necessary to repair damage to equipment and facilities or remediate impacts caused by the incident or restart production. The Company will provide further updates in due course.
