Government of Yukon provides update on heap leach failure response at Victoria Gold’s Eagle Gold Mine

Receivership order

  • On December 9, the court approved amendments to the Receivership order for Victoria Gold Corp. to allow the next phase of remediation work at the Eagle Gold Mine. This includes a $55 million increase to the borrowing limit available to the Receiver, from $50 million to $105 million, to fund remediation work by the court-appointed Receiver until March 31, 2025.
  • The Government of Yukon will make these additional funds available to the Receiver by way of an amendment to the existing receivership loan agreement, which has been approved by the Court. The source of this next phase of funding to the Receiver by the Government of Yukon is by way of a partial draw on the financial security that was posted by Victoria Gold Corporation, as required by their licences. This security is held by the Government of Yukon in the form of surety bonds.
  • The additional funds advanced by the Government of Yukon to the Receiver will be secured by the same form of super-priority charge over all assets of Victoria Gold Corp.
  • As a party appointed by the court, the Receiver must periodically return to court to provide a report on its activities, and to seek any increase in funding that may be required.
  • The Receiver’s second report, providing an update of the Receiver’s activities, was also filed with the court on November 28, 2024.
  • Information on the amended Receivership order and second report of the Receiver can be found on the Receiver’s website at https://www.pwc.com/ca/victoriagold.

Independent review

  • An Independent Review Board has been established to investigate the heap leach failure that occurred at the Eagle Gold mine, which was also confirmed in the court Order obtained by the Receiver on December 9. The review is currently in progress.
  • The independent review will seek to identify the cause of the heap-leach failure. The board will issue a final report that will be made publicly available.
  • The terms of reference for the board are available on the Receiver’s website.

Inspector’s directions

  • The Government of Yukon’s Compliance, Monitoring and Inspections Branch issued two inspector’s directions to Victoria Gold Corp. on December 2, 2024.
  • An inspector’s direction was issued under the Quartz Mining Act requiring geotechnical investigations and analyses to be undertaken and requiring that a plan to stabilize the heap leach facility be prepared.
  • The inspector’s direction issued under the Waters Act requires that a plan to intercept groundwater and a plan to manage surface and groundwater be prepared and implemented.
  • The Government of Yukon’s Mineral Resources Branch issued a regulatory direction to Victoria Gold Corp. on November 25 to direct the planning and reporting aspects of the response measures including strategies to manage water, a requirement to maintain a water balance model, and management and investigations requirements for the heap leach facility.

Water monitoring

Within the Department of Energy, Mines and Resources, Premier Ranj Pillai has appointed Sierra van der Meer as the Acting Deputy Minister to oversee the Eagle Gold Mine emergency response. This appointment will take effect on December 18, 2024, for a term of up to six months.

van der Meer succeeds Lauren Haney, who provided strong leadership throughout the emergency response and in her broader departmental responsibilities prior to the heap leach failure.

Media contact

John Thompson
Communications, Energy, Mines and Resources
867-332-6042
[email protected]

News release #:
24-582
Related information:
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