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Victoria Gold (OTCPK:VITFF) -8.4% in Toronto trading Friday after Yukon’s energy minster said elevated levels of cyanide have been detected in a waterway following last week’s collapse of the heap leach pad and slide of ore at the Eagle gold mine.
The stock plunged more than 80% following the June 24 incident but rebounded Thursday after the company denied detecting elevated cyanide levels.
A government briefing after Victoria Gold (OTCPK:VITFF) issued its statement said 300M liters of cyanide solution had escaped containment in the incident and there was “significant” risk of a further slide at the mine.
The company also said it had received notices of default from its lenders related to a US$200M credit agreement; it also retracted prior forecasts for 2024 and said production at the Eagle mine remains suspended.
The First Nation of Nacho Nyak Dun called for a halt to mining activity in its traditional territory and an independent investigation into the failure at the mine.