[Yukon’s Eagle gold mine disaster] Troubled water – by Julien Greene (CBC News – August 24, 2024)

https://www.cbc.ca/newsinteractives/

In June, Yukon’s Eagle gold mine saw what the territory’s mines minister is calling a “catastrophic failure”: the release of hundreds of millions of litres of toxic cyanide solution into the environment. For many local residents, it’s a wake-up call about the risks and costs of large-scale mining in the territory.

Steve Buyck walks a forest path framed by highbush cranberries, rosehips and Siberian Aster. Slung over his shoulder, a rifle. The bullet in the chamber is large enough to down a moose.

These days, however, hunting the animal doesn’t come so easily for him. Not far away from Buyck’s home, along the banks of the Stewart River in central Yukon, is the Eagle mine, the site of a “catastrophic” heap leach pad failure and cyanide spill in late June.

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Yukon government curbs expectations of sale of contaminated Eagle gold mine – by Niall McGee (Globe and Mail – August 24, 2024)

https://www.theglobeandmail.com/

The Yukon government is curbing expectations about a sale of the contaminated Eagle mine, saying that environmental remediation of the site is the main priority.

The open pit gold mine in central Yukon was placed into receivership earlier this month after an Ontario judge ruled that operator Victoria Gold Corp. wasn’t moving with enough urgency and lacked funding to remediate a major cyanide spill.

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Gahcho Kué diamond mine life extended to 2031 – by Marilyn Scales (Canadian Mining Journal – August 22, 2024)

https://www.canadianminingjournal.com/

The latest update reveals the plant at the Gahcho Kué mine will be recovering diamonds into 2031, a year later than earlier estimated. The mine, located 280 km northeast of Yellowknife, NWT, is a joint venture of De Beers Canada (operator and 51% owner) and Mountain Province Diamonds (TSX: MPVD) (49%).

The update follows engineering work to steepen the walls of the open pit. This change will allow additional kimberlite to be captured within the mine plan and represents an increase of 2.7 million tonnes at 2.0 c/t or 5.5 million carats in the resource.

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Agnico, New Gold, Iamgold seen as possible buyers for shuttered Eagle Gold mine – by Niall McGee (Globe and Mail – August 22, 2024)

https://www.theglobeandmail.com/

Stakeholders are hoping for a restart of the contaminated Eagle gold mine, but experts say finding a buyer isn’t guaranteed, and creditors are likely to take a major haircut regardless of the outcome.

Toronto-based Victoria Gold Corp. was placed in receivership last week, its management ejected and its shareholders wiped out after an Ontario judge ruled it wasn’t moving with enough urgency and lacked sufficient funding to remediate a major cyanide spill in central Yukon.

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Victoria Gold CEO regrets silence during crisis, suspects cyanide spill caused by fluid buildup – by Niall McGee (Globe and Mail – August 16, 2024)

https://www.theglobeandmail.com/

Victoria Gold Corp. chief executive officer John McConnell says he regrets staying silent while the company was in crisis, and suspects June’s catastrophic cyanide spill at its Yukon mine was caused by an uncontrolled buildup of fluid.

Four million tonnes of cyanide-laced rocks collapsed at the outdoor heap-leaching facility on June 24 and half of that spilled into the local environment beyond the company’s containment zone. The scale of the environmental damage is unknown, but the local First Nation fears the spill could devastate salmon fisheries, hunting grounds and groundwater. Dozens of dead fish were recently found in a creek near the mine and groundwater in the vicinity of the mine will have to be monitored for toxic cyanide for years to come.

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‘We’re not out of the woods yet’: Victoria Gold CEO speaks publicly for 1st time since heap leach failure (CBC News North – July 30, 2024)

https://www.cbc.ca/news/canada/north/

Company has no intention of leaving the site, says John McConnell

The president and CEO of Victoria Gold says there’s still a lot of work to do before the heap leach failure at the company’s Eagle mine site near Mayo, Yukon, is contained — but the company has no intention of leaving the site.

Speaking publicly Tuesday — the first time he has done so since the heap leach pad went down on June 24 — John McConnell said he believes there is no longer the potential for major environmental impacts from the failure, which is believed to have released up to 300,000 cubic metres of toxic sodium cyanide solution.

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Weak Rough Prices Hit Ekati Sales – by Suzanne Watkin (Rapaport Magazine – July 29, 2024)

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Revenue from the Ekati mine’s rough output fell 27% during the second fiscal quarter, according to owner Burgundy Diamond Mines.

The company sold 1 million carats from the Canadian deposit for $106 million for the three months that ended June 30, it said last week. That compares to the sale of 1.3 million carats for $145 million during the same period a year ago.

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Yukon partially takes over Victoria Gold mine cyanide spill cleanup after company fails to meet orders – by Niall McGee (Globe and Mail – July 28, 2024)

https://www.theglobeandmail.com/

The Yukon government has taken over some of the environmental-mitigation efforts stemming from a major gold-processing plant failure in the territory because operator Victoria Gold Corp. failed to meet a key government directive.

Four million tonnes of cyanide-laced rocks collapsed on June 24 at an outdoor heap-leach facility at the Eagle gold mine in central Yukon operated by Victoria Gold. Two million tonnes of material breached the company’s containment zone and elevated levels of cyanide were later found in a water body adjacent to the mine.

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Documents show ‘disastrous’ cyanide leaks continue at Eagle mine in Yukon – by Caitrin Pilkington (CBC News North – July 24, 2024)

https://www.cbc.ca/news/canada/north/

Victoria Gold excavated a pit to hold contaminated solution — but failed to line it

Yukon government inspection reports released to the public this week reveal the scale of what transpired at the Eagle mine site near Mayo — and what’s being done by Victoria Gold to address it. An inspection report dated July 20 describes a series of failures by Victoria Gold to adequately address cyanide solution leaks.

The company’s post-failure water treatment plan “does not sufficiently describe” plans to store and treat daily leaks of 15,000 to 20,000 cubic metres of toxic solution — enough liquid to fill up to eight Olympic swimming pools.

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Yukon contemplating seizing control of Eagle mine site as Victoria Gold runs low on storage for contaminated water – by Niall McGee (Globe and Mail – July 19, 2024)

https://www.theglobeandmail.com/

The Yukon government is contemplating seizing control of Victoria Gold Corp.’s Eagle mine site, as doubts grow about the company’s ability to prevent further environmental damage after a catastrophic heap-leach failure last month.

Four million tonnes of cyanide-laced rocks collapsed June 24 at an outdoor heap-leach processing facility at the gold mine in central Yukon. Two million tonnes of material breached the company’s containment zone and elevated levels of cyanide were later found in a water body adjacent to the mine.

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‘Drug Disneyland’ part of lax safety culture in shadow of Victoria Gold accident, workers say – by Blair McBride (Northern Miner – July 17, 2024)

https://www.northernminer.com/

A landslide that’s stopped production at Victoria Gold’s (TSXV: VGCX) Eagle mine in the Yukon may have been inevitable due to the company’s weak approach to safety protocols, current and former employees say.

Individuals who approached The Northern Miner to share their experiences of working at Eagle, told of neglected incidents and repairs, attempts to subvert injury reports and widespread drug and alcohol use in a supposedly dry camp. They asked not to be named to avoid career repercussions.

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Recent spill stirs speculation about future of Yukon mine – by Sara Connors (APTN News – July 16, 2024)

https://www.aptnnews.ca/

Victoria Gold recently indicated it’s facing financial uncertainty

Some environmental advocacy groups are speculating the company behind the Eagle Gold Mine – site of a cyanide spill in Yukon last month – may soon go bankrupt. Mine owner Victoria Gold released a statement on July 12 indicating it is facing uncertainty regarding the future of the mine.

“There can be no assurance that the Company will receive authorizations necessary to restart production,” it said, “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.”

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Yukon gov’t orders Victoria Gold to provide plans aimed at treating, monitoring contaminated water – by Julien Greene (CBC News North – July 10, 2024)

https://www.cbc.ca/news/canada/north/

Government spokesperson says company submitted plans, which aren’t public

The Yukon government has given Victoria Gold marching orders to deal with toxic chemicals in and around its Eagle mine, following last month’s major failure of a heap leach pad at the site.

A new report written by a government inspector states there’s “reasonable grounds” to believe the company has violated laws that govern water use.

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Yukon minister says cyanide found in creek near mine spill, after firm issues denial – by Ashley Joannou, (Bloomberg/Canadian Press – July 5, 2024)

https://www.bnnbloomberg.ca/

Elevated levels of cyanide have been detected in a waterway after an equipment failure and slide of ore at Victoria Gold’s Eagle Mine last week, the Yukon’s minister of energy, mines and resources said.

A government expert said at the same briefing on Thursday that 300 million litres of cyanide solution had escaped containment in the June 24 incident and there was “significant” risk of a further slide at the mine.

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Ekati boss envisions another 25 years of mining – by Derek Neary (NNSL.com – July 4, 2024)

https://www.nnsl.com/

Agnico Eagle hits new marks at Meliadine and Meadowbank

The Northwest Territories’ economy continues to lean heavily on diamond production, which is waning overall, and, to a lesser extent, rare earths. In Nunavut, gold and iron ore are the backbone of GDP. Here are some noteworthy occurrences from operating mining companies in both territories.

Burgundy Diamond Mines

Burgundy Diamond Mines, owner of Ekati, reported a major jump in carats sold in its first quarter report for 2024. Its 1.32 million carats sold played a central part in the $117 million (U.S.) in revenues generated for the quarter. The total yield was 1.15 million carats, down from 1.18 million a year earlier.

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