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Victoria Gold failing to comply with water management orders: report

The Yukon government continued to put more pressure on Victoria Gold Corp. to step up its containment effort at the Eagle Gold Mine last weekend.

Through the Yukon Water Board, a new directive to the company was approved, with multiple items relating to water treatment and storage. They stem from the disastrous June 24 heap leach pad landslide at the site, about 90 kilometres northeast of Mayo.

The company has not adequately met previous orders from the government when it comes to containing and treating water on the site, the new report states.

“On July 17, a Natural Resource Officer observed that no lined water storage facility had been constructed and that an unlined excavation has been constructed in the Dublin Gulch valley. The size of the excavated area appears to be significantly less than 50,000m3 and in the absence of a liner any contaminated water deposited in the excavation can potentially infiltrate the granular materials and result in the deposit of waste to groundwater and the downstream environment.”

John Streicker, the minister of Energy, Mines and Resources, released a statement early this afternoon.

“This series of additional directions is aimed at addressing potential stability risks of the heap leach facility, and enhancing contaminated water storage and treatment, which includes setting up a system to pump and treat groundwater.

“The Government of Yukon is applying a progressive enforcement approach to the Eagle Gold failure response. The inspector’s directions issued on Saturday build on the previous ones and are based on our updated understanding of the site conditions and potential risks.”

Streicker said the government “recognizes the seriousness of the heap leach failure that occurred. We are treating this as an emergency response, recognizing the potential impacts to people and the environment.

“Our role as a regulator and enforcement body is to closely monitor the situation, and, when appropriate, direct the company and hold them accountable. Our two key priorities are on-site safety and environmental protection.”

One local organization, CPAWS Yukon, has condemned the situation.

“Our latest #EagleMineDisaster update confirms Victoria Gold’s poor response. Join us in saying it again: there needs to be more action, now,” CPAWS said.

“The territorial and federal governments need to step in with resources to co-ordinate an emergency response and support the First Nation of Na-Cho Nyäk Dun.”

The heap leach failure saw “two million tonnes of cyanide-contaminated rocks spilled onto unprotected ground,” CPAWS pointed out.

“This is a story of engineering and operating failures in mining, but also of BIG shortcomings in the territorial government’s regulatory system. The potential near- and long-term impacts on the nearby land and waterways are really troubling.”

The First Nation of Na-cho Nyäk Dun has called for an independent, public inquiry and a mining moratorium in its traditional territory, CPAWS noted.

The Yukon Party has also weighed in on the issue.

“The Yukon Party caucus remains concerned about the environmental impacts from the Eagle Gold mine heap leach pad failure on June 24 and expects Victoria Gold to adhere to all directives from the government’s Energy, Mines and Resources branch, and from the Yukon Water Board as per their water licence,” the official Opposition said.

The July 20 order from the Yukon government “raises questions about what steps the government will take if the outlined timelines and actions are not addressed,” the Yukon Party said.

“We continue to hear concerns about the potential devastating economic consequences for Yukon businesses and Yukoners. We encourage the company to address all outstanding directives and to improve communication going forward.”

NDP Leader Kate White said this morning, “What we’re seeing here is a worst-case scenario playing out. Yukoners are hearing from experts that every minute counts, but we can see that Victoria Gold is not even doing the bare minimum that YG has told them to do to respond to this disaster. The company’s response is clearly failing.”

Unfortunately, White added, “the only action we’re seeing from the Liberals is to ask the company once again to listen to their directions – it’s clearly not working.

“The government’s directions state that a lined water storage facility was required by July 15th, but it wasn’t until July 17th that this was assessed as not complete. Why did it take the government two days to check the status of this direction?” White asked.

The new report orders Victoria Gold to:

1) Not discharge any contaminated water to an unlined storage facility or any other area that does not have containment capacity to safely and securely retain 100 per cent of the contaminated water deposited therein.

2) Procure and install or construct additional water storage facilities to increase capacity onsite and ensure no contaminated water is discharged to the environment. Capacity must be increased to a volume where three days of draindown volume can be contained prior to treatment and discharge. Evidence of procurement, or construction must be provided on July 22 by 10 a.m. Yukon Standard Time.

3) By July 24, at 12 p.m., provide certainty that Victoria Gold Corp. has the ability and necessary degree of readiness to successfully treat and discharge water from site at a rate of 15,000m3 to 20,000m3 per day including:

a) a list of all reagents, including amounts required daily, for this proposed treatment approach,

b) the burn rate for each of these reagents,

c) a list of suppliers that are under contract, or have been contacted to supply the necessary reagents, and

d) a disposal plan for all treatment residues

4) Procure all reagents necessary to treat contaminated water, provide proof of a consistent supply chain for these reagents and provide an update on reagent supplies by 10 a.m. Yukon Standard Time every Monday and Thursday beginning on July 22. Each update must include a list of reagents on site, and those in transit to the Eagle Gold Mine site and their anticipated delivery dates.

5) Install additional groundwater monitoring wells, outside the area impacted by the slide, downstream of the Lower Dublin South Pond. These wells should be placed to monitor potential flow paths in the southwestern portion Dublin Gulch valley. Each well must be installed with the capability to be repurposed as a pumping well should contamination be discovered and interception and treatment be required. Provide confirmation that the installation of these wells has commenced by July 25 by 4 p.m. Yukon Standard Time.

6) Install a series of vertical wells to intercept groundwater immediately after constructing the cross-valley interception berm that is required by the inspector’s direction I issued to Victoria Gold Corp. pursuant to the Quartz Mining Act on July 19. These wells must be located upstream of the Lower Dublin South Pond, in a location similar to MW18-DGR-2G, and span across the valley and be in sufficient quantity to reasonably intercept all groundwater flows within the valley.

Victoria Gold has failed to return media inquiries since the disaster occurred.

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