Victoria Gold (TSXV: VGCX) plans to temporarily relocate workers from its Eagle mine in Yukon as it continues cleanup after the heap leach pad accident on June 24, the company said in a letter to employees on Saturday.
The letter, which was sent to The Northern Miner by an individual who asked not to be named, didn’t specify how many people would be affected by the move. However, the Yukon government has said Victoria reduced on-site staff to 60 essential workers. An employee at Eagle told The Northern Miner that hundreds of workers were laid off. Victoria hasn’t confirmed any layoffs or responded to multiple requests for comment.
The heap leach spill and landslide damaged some infrastructure at the Yukon’s only producing gold mine. The incident tanked Victoria’s share price by more than 85% during the last week of June. The single-asset company now has a market cap of $48 million.
The cause of the accident at Eagle is still not known. But an employee who was injured in the accident alleges the company has a track record of unsafe practices. And after The Northern Miner published an exclusive interview with the worker, a second Victoria Gold employee came forward with similar information. The former employee, who worked in Eagle’s safety department and asked not to be named, told The Northern Miner he often saw broken pipes spraying water all over the pad.
“With that much moisture going into it, it has to go somewhere,” he said. “Water will flow if it’s not contained. Obviously the (pad) design didn’t work.”
No impending danger
The Victoria letter said there was no impending danger to the camp.
“Work will be conducted in the coming days and weeks which will necessitate the relocation of camp residents from their rooms to another nearby site or sites,” Victoria said in the letter. “There is no imminent danger to the camp complex, and we can continue to use the facility on a limited basis. The only caution will be that employees will not be permitted to sleep in the camp.”
The news comes just three days after Victoria said there’s no assurance it will be authorized by the Yukon government to resume production, or that it will have enough cash to repair the damage at Eagle or restart production. That announcement was the company’s third news release since the accident at Eagle, about 375 km north of Whitehorse.
The slope where the slide occurred at Eagle isn’t yet stable enough for human-operated heavy machinery and the Yukon government is considering deploying alternatives in the cleanup, such as remote equipment, Erin Dowd, the territory’s mine licensing manager said in a news briefing last Thursday.
Seismic study
The letter notes that Victoria is drawing on the expertise of geotechnical experts as it responds to the accident, including its “Engineer of Record from Forte,” who is preparing for a seismic study on Eagle’s heap leach facility.
Mining and consulting firm Forte Dynamics lists Victoria Gold as a client on its website. The Northern Miner has requested further information from the Colorado-based company.
That study is to provide the company with further information and give a “greater sense of comfort” that there’s no danger to the camp, Victoria said in the letter.
‘Up to four weeks’
In the meantime, while alternative sleeping arrangements are being made, employees can still use the dining hall, showers, washrooms and offices.
Victoria said the temporary sleeping arrangements will be in place for a maximum of four weeks.
Victoria also faces several orders from the Yukon government on measures to safeguard land and water at Eagle, subject to deadlines this month. Failure to meet the orders could result in charges.
https://www.fortedynamics.com/projects