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

On December 28, 2024, PricewaterhouseCoopers Inc., the court appointed Receiver for Victoria Gold Corp., issued a notification to the Government of Yukon and the First Nation of Nacho Nyak Dun regarding a potential leak in a newly constructed containment pond. The notification was prompted by irregularities in storage pond volumes. Regulatory and enforcement agencies have been notified and ongoing water quality monitoring results will determine if a leak may be  impacting Haggart Creek.

The Government of Yukon continues to work closely with the Receiver’s and First Nation of Nacho Nyak Dun’s technical team to determine the cause of irregularities in storage pond volumes and potential impacts to the environment. In the meantime, temporary measures have been approved to dilute the pond’s water to reduce its toxicity. Enhanced monitoring of groundwater and surface water in Haggart Creek is underway to track any environmental impacts.

These actions, along with emergency approvals to prevent overflows of untreated water, are part of the Yukon government’s ongoing efforts as the primary territorial regulator and enforcement body for the mine site to manage the situation responsibly and minimize environmental impacts. The Receiver is now in control of the mine site for the purpose of carrying out remediation of the failure and its impacts. The Receiver is overseeing and facilitating the work with the input and support of the Yukon government and is responsible for implementing all directions issued by the Government of Yukon and federal regulators.

Environmental mitigation measures  

• Monitoring pond volumes in winter conditions is not precise due to snow and ice formation and the expected settling of newly constructed ponds.
• Further work is required to determine if the reduction in volume is due to settlement and ice formation or if water has leaked into the environment. 
• The Receiver, with input from the Government of Yukon, is conducting further assessments to determine the cause of decreased pond levels and options to mitigate a potential release of pond water.  
• Water levels on site are at a critical level and more storage within this pond is necessary to reduce the risk of other ponds with cyanide-contaminated water from overflowing.   
• Treated   water is being pumped to the pond on a temporary basis to, among other things, dilute the water stored in this area and reduce the potential for environmental impacts. Storage of treated water in the pond is the most environmentally protective option under the current circumstances. 
• Increased environmental monitoring is underway in the area including sampling of pond water for quality and toxicity, monitoring of adjacent groundwater wells and surface water monitoring in Haggart Creek.
• The Receiver’s water treatment specialist is currently investigating additional treatment steps to reduce copper prior to discharge. 
• These most recent water quality results continue to be posted on yukon.ca and the Government of Yukon will continue to provide regular updates on a monthly schedule.

Yukon Water Board licence amendment

• PricewaterhouseCoopers Inc., the court-appointed Receiver, is in control of the mine site for the purpose of overseeing the work involved in remediation of the heap leach failure and its impacts. 
• On December 20, 2024, the Yukon Water Board approved the Receiver’s application for an emergency amendment to the site’s water licence to allow for the discharge of partially treated water. 
• Under the amended licence, partially treated water will be non-toxic but will have higher levels of copper, particulate solids and cyanide than previously allowed. The levels in the amended licence are consistent with federal regulations that set standards aimed at avoiding harm to fish and aquatic species.