Victoria Gold Faces Severe Environmental and Financial Challenges

The site is currently facing significant challenges due to temporary containment ponds holding 309,000 cubic meters of contaminated water nearing capacity. According to a PwC update on November 29, these storage constraints will continue until regulators approve the discharge of treated water.

Progress on Water Treatment Plant Underway

Upgrades to the water treatment plant are ongoing, with final laboratory tests in progress to confirm compliance. PwC reported, “We are working to ensure continuous operation through the winter,” emphasizing the urgency as icy weather approaches. In its update regarding the receivership, PwC noted that recently approved funds are vital to preventing further environmental damage.

Leach Pad Failure Causes Major Incident

A leach pad failure in June resulted in the release of 4 million tonnes of materials containing ore and a cyanide solution. This incident severely impacted the company and prompted the Yukon government to seek a court order for appointing PwC as receiver, driven by frustration over Victoria Gold’s cleanup efforts.

To address the situation, the receiver has installed 18 groundwater wells and 11 pumping wells to manage contaminated water. Contractors completed a safety berm in late October and are currently stabilizing the heap leach pad with the help of consultants conducting a full condition analysis.

Company Owes Over C$300 Million

As of March, Victoria Gold owed C$232.5 million to secured creditors and C$82.7 million to more than 400 unsecured creditors. The company’s board resigned immediately after PwC was appointed as receiver.

Just days later, PwC dismissed former CEO John McConnell. Furthermore, an independent investigation into the heap leach failure is underway, with findings expected to prompt regulatory changes. The failure has raised concerns among Yukon operators, increasing scrutiny from investors and regulators regarding heap leach projects.

Uncertainty Surrounds Future of the Mine

While remediation remains a primary focus, the mine’s future is still unclear. The Yukon government has not dismissed the possibility of a restart, but the First Nation of Na-Cho Nyak Dun—which oversees the traditional lands where the mine is located—has called for stricter oversight and a pause in mining operations.

Currently, PwC is concentrating on stabilizing the site and minimizing environmental damage, as noted in its official statements.