July 12th, 2024

Yukon gold mine says no cyanide detected after spill, as lenders cite credit default

By The Canadian Press on July 4, 2024.

The Yukon provincial flag flies on a flag pole in Ottawa on July 6, 2020. THE CANADIAN PRESS/Adrian Wyld

MAYO, YUKON – Mining company Victoria Gold says no cyanide has been detected in surface water since an equipment failure and slide of ore at its Yukon Eagle Mine last week.

The company says in a statement that the negative results come after sampling at multiple points downstream from the mine, but tests continue.

The failure occurred at a heap-leach facility, which uses a cyanide solution to percolate through crushed ore and extract gold.

Victoria Gold also says in the statement that it has received notices of default from its lenders under a 2020 credit agreement.

It says production remains suspended and its previous 2024 production and cost forecasts have been retracted.

Neither the company nor the Yukon government have said how much ore escaped containment at the mine in the June 24 incident, about 500 kilometres north of Whitehorse.

This report by The Canadian Press was first published July 4, 2024.

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