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Victoria Gold (OTCPK:VITFF) -85% in early trading Tuesday after reporting a collapse of the heap leach pad at its Eagle gold mine in Canada’s Yukon, causing it to temporarily suspend operations.
“At this early stage, it can be confirmed that there has been some damage to infrastructure and a portion of the failure has left containment,” the company said, adding that no injuries to personnel are associated with the incident.
The Nacho Nyak Dun First Nation, whose traditional territory includes the mine site, said it is concerned about the “potentially significant and far-reaching environmental impacts, particularly to surrounding waters, fish, and wildlife.”
Nacho Nyak Dun said early reports appear to indicate the “significant” heap leach failure caused a landslide near the mine heap leach facility and gold recovery plant.
Victoria Gold (OTCPK:VITFF) expects the Eagle mine, which poured its first gold in 2019, will produce 2.4M oz during an 11-year lifespan.
Environmental Concerns
The collapse of the heap leach pad at Victoria Gold’s Eagle gold mine has raised significant concerns about potential environmental impacts, especially in terms of surrounding waters, fish, and wildlife. This incident underscores the importance of stringent environmental monitoring and regulation in mining operations to prevent such disasters.
Operational Impact
With operations at the Eagle gold mine temporarily suspended following the collapse of the heap leach pad, Victoria Gold is likely facing challenges in resuming production and mitigating the damage caused. This disruption could have financial implications for the company and its stakeholders.
