Yukon mine halts operations after system failure, says infrastructure damaged

MAYO, YUKON — Work has been temporarily halted at a central Yukon mine after the company says there was a malfunction in its system that uses chemicals to help extract gold.

Victoria Gold said in a statement on Monday that its heap leach platform at the Eagle Gold mine near Mayo had suffered a fault, causing some damage to the infrastructure and that “part of the fault had left the containment”.

Heap leaching uses chemicals to percolate through the crushed ore, allowing it to extract gold.

A technical report on the company’s website says the gold from the Eagle Gold Mine is leached with a cyanide solution.

A statement from the Nacho Nyak Dun First Nation, whose traditional territory includes the mine site, said it was concerned about “potentially significant and far-reaching environmental impacts, particularly to surrounding waters, fish and wildlife.”

The First Nation said initial reports appear to indicate the “significant” failure to leach the piles caused a landslide near the facility and gold recovery plant.

“This is a deeply serious incident and we are monitoring it closely with our staff on the ground and with our partners in public government,” Chief Dawna Hope said in the statement.

“Our first priority is to minimize the impact on our lands, waters and wildlife, as well as the (First Nation) and any other affected First Nations. We will then seek to understand how and why this happened.”

Victoria Gold said no one was injured and staff and management are continuing to assess the situation and gather information.

The First Nation said it is in contact with both the mining company and the Yukon government.

John Thompson, a spokesman for the Yukon Department of Energy, Mines and Resources, said in a statement that territorial natural resources officers will investigate.

The Eagle Gold Mine poured its first gold in 2019, and the company says it is expected to produce 2.4 million ounces over an 11-year life.

The mine has about 500 employees, as well as numerous contractors and consultants, according to the company’s website.

— Ashley Joannou from Vancouver

This report by The Canadian Press was first published on June 24, 2024.

The Canadian Press