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Victoria Gold CEO speaks out on collapse

North of 60 Mining News - July 31, 2024

An overview of events from the collapse to the most recent update; includes first public statements from McConnell with CBC News.

For the first time since the June 24 incident, Victoria Gold Corp. CEO John McConnell broke his silence, detailing the company's ongoing efforts to contain the damage.

"We're not out of the woods yet," he admitted, highlighting the serious challenges ahead in ensuring environmental safety and restoring trust.

On June 24, Victoria Gold reported a collapse of the heap leach pad at its Eagle Gold Mine in Yukon, Canada.

In response, the company, Yukon government, and concerned First Nations whose territory the mine resides within, began investigations into the cause of the collapse and, more importantly, the potential health and environmental effects from cyanide used to recover gold from the heap leach pad.

To keep the public informed, the Yukon government initiated weekly technical briefings to provide updates on the ongoing investigations, discuss immediate and long-term mitigation efforts, and address community concerns regarding environmental and health impacts.

During its first briefing, officials highlighted the immediate actions taken to contain and assess the environmental damage. Kelly Constable, the Director of Mineral Resources, detailed the heap leach process and confirmed that a multi-bench slide had caused significant displacement of ore, which prompted immediate efforts to build containment dams.

"The ore stockpile is built in a series of benches," she said. "This was a multi-bench failure, meaning it was significant in size. The company moved quickly following the slide to build dams to hold back contaminated water released from the slide material. This water is being pumped into storage blocks. The company has voluntarily stopped mining at this time."

These measures were aimed at preventing contaminated water from affecting the surrounding environment.

Furthermore, community safety and environmental protection were emphasized. With no serious injuries reported, however, it was stated that there were two employees who required first aid the day of the collapse.

Yukon Government

Aftermath of the landslide from the heap leach failure at Victoria Gold's Eagle Gold mine, taken on July 3.

Immediate aftermath

On July 4, the Yukon Government reported elevated levels of cyanide in a creek downstream from the Eagle Mine. Samples indicated cyanide concentrations of 0.04 milligrams per liter, significantly higher than the permitted level of 0.005 milligrams per liter. This data was later corroborated by Victoria Gold's own water sampling, reinforcing the need for continued caution.

In response to these findings, Victoria Gold increased its water sampling efforts, testing daily from multiple locations, including downstream areas.

To manage the contaminated water, the company implemented a robust water treatment system, including installing a reverse osmosis plant, and expanded its water storage capacity with additional lined containment ponds.

On July 12, the Yukon Government mandated several critical measures for Victoria Gold, including the installation of groundwater interception lines and the stabilization of the slide area beneath the heap leach embankment.

These directives aimed to prevent further environmental damage and ensure ongoing monitoring and management of the site.

On the same day, Victoria Gold announced its own updates regarding the ongoing environmental and operational challenges following the heap leach facility incident.

The company detailed the measures taken since the collapse, such as constructing containment dams, installing diversion systems, and setting up pumping systems to return contaminated water to lined containment ponds.

The company also reported that seismic surveys had been conducted to assess the integrity of the heap leach facility embankment, and additional geotechnical monitoring initiatives had been established.

An independent survey estimated that about 4 million metric tons of ore, roughly 10% of the total, moved during the incident, with around 2 million metric tons moving beyond the embankment. Despite this, the majority of the on-site infrastructure, including the Eagle open pit, associated mining infrastructure, and various processing facilities, remained unaffected.

As investigations into the cause of the collapse remain ongoing, Victoria Gold engaged its engineer of record and third-party technical experts to conduct a thorough root cause analysis.

Production operations at Eagle Gold remain suspended, and the company says it has continued to work closely with the Yukon government and the First Nation of Na-Cho Nyäk Dun to develop a comprehensive plan to prevent future occurrences.

Yukon Government

Pumps operating at Victoria Gold's Eagle Mine as part of the ongoing efforts to manage and treat water following the heap leach failure

Growing concerns

Despite Victoria Gold's efforts, the company's communication has been criticized. Yukon's Deputy Mining Minister Lauren Haney described the company's silence as "unfortunate and frankly unhelpful."

Haney acknowledged that Victoria Gold had been "doing a lot of work" to treat and divert contaminated water but suggested it might not be sufficient. Due to growing concerns, the Yukon government says it has considered stepping in to "complement and supplement" the company's work.

"We are looking at all the scenarios right now, and one of those scenarios is where we would be taking over activities at the site in a more complete way," the deputy mining minister stated.

She emphasized the need to rely heavily on advice from technical experts and did not rule out a greater governmental role in managing the site.

An independent review panel was planned to investigate the incident thoroughly.

"This is similar to what's done with any mine failure in the world. This type of independent review panel is struck to ultimately get at the heart of what happened," Haney added, stressing the importance of incorporating lessons learned into legislation and regulatory practices.

Yukon Mineral Resources Director Kelly Constable highlighted the urgency of the situation, noting that the company was running out of storage space for contaminated water in the mine's ponds.

As a temporary measure, Victoria Gold continued to make more storage space and increase capacity over the next 10 to 15 days – a timeframe that has now passed since these measures were implemented.

Constable also pointed out that the water treatment facility could not handle the volume of contaminated water, though upgrades were underway. Monitoring of the heap leaching facility's stability has also been increased as part of these efforts.

Part of the growing concern was the lack of communication by Victoria Gold, having last provided a public statement nearly a week prior.

This silence exacerbated worries among stakeholders, prompting calls for greater transparency and more frequent updates. As the company and government worked to address the immediate challenges, the broader implications of the incident continued to unfold.

Yukon Government

One of the many sites where water sampling is being conducted.

Newest update

On July 30, Victoria Gold released an update on the management of the heap leach facility incident. The company emphasized its ongoing commitment to safety and environmental protection.

"Our focus continues to be on the safety of our employees and the mitigation of harm to the environment," the statement read.

Victoria highlighted its collaboration with the Yukon government, the First Nation of Na-Cho Nyäk Dun, the Village of Mayo, the Yukon Workers' Safety and Compensation Board, and other regulatory authorities.

The company reported that each activity on-site where workers could potentially be exposed to risks related to the incident undergoes a rigorous Job Hazard Analysis to ensure safe working conditions.

This includes designating certain areas as restricted zones pending detailed independent third-party reviews. A seismic survey was conducted to assess the integrity of the heap leach facility embankment, and additional geotechnical monitoring initiatives were established.

Throughout the month, Victoria has rigorously continued water inspections, sampling water daily from multiple locations at the Eagle Mine, including several downstream from the heap leach facility incident.

As of July 23, minor amounts of weak acid dissociable (WAD) cyanide were detected in seven out of 134 samples, ranging from 5.2 to 9.3 parts per billion, slightly above their water quality objective but well below the Canadian drinking water guideline's maximum acceptable concentration.

This follows with earlier findings from July 2, where initial samples had not detected cyanide beyond acceptable limits.

To manage contact water, the company established a pumping system to return it to lined containment ponds.

The company is also expediting the construction of additional lined water storage on-site and have augmented their water treatment capacity. The water treatment plant infrastructure was also modified to include a breakpoint alkaline chlorination process for cyanide destruction and metals precipitation.

In addition to these measures, Victoria Gold has been working on stabilizing the slide area and reinforcing the heap leach embankment. These efforts include the installation of groundwater interception lines to manage water flow and prevent further contamination.

The company has also been closely monitoring the stability of the heap leaching facility with continued geotechnical initiatives to ensure there is no additional movement.

Aside from this work on water treatment and management, the company reports no other significant material movements or new developments since the initial incident. The ongoing focus remains on ensuring the safety of employees and mitigating environmental harm while working closely with regulatory authorities and independent experts.

Breaking the silence

After more than a month, McConnell spoke publicly for the first time since the incident on June 24 in an interview with CBC News.

Right away, the Victoria Gold CEO said he believes there is no longer the potential for major environmental impacts from the failure.

While reiterating many of the points outlined in the company's press release, many doubts and concerns around Victoria's lack of communication were immediately addressed.

"We've heard from some Yukon officials who said it's been frustrating that Victoria Gold hasn't spoken publicly since the heap leach failure. Why are you choosing to speak now?" CBC's Jackie Hong asked McConnell.

"Well, we've been heads down, tails up, working extremely hard, and really haven't had time," the Victoria Gold CEO responded. "I think we're starting to get things under control at the site and have some – I wouldn't say positive news, but some good news. So, it's time to get out there and talk about it. But everybody's been working extremely hard."

Hong asked if the good news was a part of the update the company released earlier in the day or if there was any new data he was willing to share.

"No, I think that was generally good news. We're at a place where we're starting to treat water now and things are in much better control than they were two weeks ago," he said.

Addressing questions about the ongoing work, activities on site, and plans the Yukon government has for aiding the cleanup, Hong asked the question perhaps on everyone's lips.

"There are concerns that not enough is being done, that cyanide has already been released into the environment. What do you make of those concerns?" she asked.

"It's still a concern of ours. We're not out of the woods yet. I think there's been some good positive steps, but there's still a lot of work to do and a lot of water to treat. I think we've been able to collect the majority of the water," McConnell answered. "There's no doubt that there is groundwater, which is very difficult to predict what happens to it and where it goes. There is still uncertainty, no doubt about that. We're doing everything humanly possible to prevent this from becoming a major environmental disaster."

Her follow-up asked if the potential still existed. McConnell said there is still potential for minor impacts, but no longer major ones.

"And why are you confident about that?" she asked.

"Ah, I'm an optimist or I wouldn't be in this business," replied McConnell. "I think we've taken all the right steps to ensure that the impact on the environment is minimal."

The remainder of the interview addressed many of the immediate questions that formed during the early days of the collapse.

Ultimately, McConnell expressed a resolve through his answers and maintained that Victoria has no intention of leaving the site.

 

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