Victoria Gold Corporation's Eagle Mine heap leach failure

Our role as a regulator and enforcement body is to closely monitor the situation and, when appropriate, direct the receiver. The Government of Yukon is treating this as an emergency response, recognizing the potential impacts on people and the environment. Our key priorities are on-site safety and environmental protection.

January 5, 2026

The Government of Yukon extended its credit agreement with the court-appointed receiver for Victoria Gold Corporation. Key points include: 

Credit agreement 

• The credit agreement is extended to April 1, 2026.
• The extension does not include additional funding.
• The maximum loan amount remains $220 million. 

Site operations and sale process 

• The Receiver continues to manage operations at the Eagle Gold Mine, including heap stabilization and water monitoring.
• Work to advance the mine sale process is ongoing.
• A closing date for the sale has not been set. 

Financial oversight 

• In April 2025, the court approved the Government of Yukon to loan up to $220 million to the Receiver.
• The loan is secured by a court-ordered super-priority charge and is recorded as a loan receivable.
• This does not impact the Yukon government’s surplus or net financial debt.

September 25, 2025

The Government of Yukon provided an update on the remediation work and environmental monitoring of the Eagle Gold Mine heap leach failure. Key points include: 

Water management and treatment 

• The main focus has been intercepting, storing and treating water. The Receiver has:
  • built water storage ponds;
  • installed groundwater monitoring and interception wells;
  • expanded the environmental monitoring network; and
  • treated and discharged water from the site.
• Biological agents are being used to destroy cyanide and improve water treatment. The goal is to reduce or eliminate cyanide levels.
• So far, the Receiver has:
  • intercepted more than 350,000 cubic metres of groundwater; and
  • treated and discharged over 800,000 cubic metres of water.

Environmental monitoring and water quality 

• Water quality in Haggart Creek is meeting objectives for cyanide and copper. Mercury levels are below detection at all monitoring stations. These improvements are the result of collecting and storing contaminated groundwater, which is preventing contaminants from reaching the creek.
• Near the mine site, concentrations of nitrite and cobalt have decreased but remain above objectives.
• View water monitoring results.

Heap stability 

• Remote-controlled bulldozers are being used to recontour the heap to improve stability and reduce the risk of another slide.
• Water recirculation on the heap has stopped. A well has been installed to remove water from the in-heap pond. 

Gold recovery and funding 

• Work continues to recover gold from the cyanide water stored in ponds. Technical advisors confirm this has not affected water treatment.
• Revenue from asset sales, including future gold sales, is helping fund site work and offset remediation costs.

Next steps 

• The Receiver is completing the final work needed to stabilize the site.
• Over the winter, the Receiver will continue managing water and monitoring conditions on and off site.
• The Government of Yukon will continue to work closely with the Receiver to ensure actions are taken to maintain physical and environmental stability.  

July 2, 2025

The Government of Yukon provided a statement following the release of the Independent Review Board’s report on the heap leach facility failure at the Eagle Gold Mine. Key points include: 

Independent review findings 

• The Independent Review Board published its final report on Eagle Gold Mine's heap leach facility failure. The report found that multiple factors contributed to the failure.
• A key issue was a layer of ore that was not draining properly. The layer above became saturated, which led to the slide.
• The report includes lessons learned and recommendations to help improve oversight of heap leach facilities. 

Environmental monitoring 

• Cyanide, mercury and other contaminant levels at the site are decreasing.
• Environmental monitoring is ongoing.
• The Government of Yukon is working with the First Nation of Nacho Nyak Dun and the Government of Canada to ensure appropriate actions are taken to protect the environment and public safety.

View the Independent Review Board report 

June 12, 2025

The Government of Yukon provided an update on gold recovery from the cyanide water stored at the Eagle Gold Mine. Key points include:

Gold recovery

• The gold being recovered is found within the cyanide water stored in ponds at the mine site.
• The recovery process will help with water treatment activities. It will destroy some cyanide, with no additional cyanide being introduced.
• No new mining activity is occurring.
• Proceeds from gold sales will help fund ongoing remediation efforts. The Receiver will report on the value of gold recovered.
• Gold recovery will continue as long as it does not negatively impact remediation efforts.

Ongoing water management

• The 2nd water storage pond has been built to help with additional water during spring melt. The 2 ponds provide approximately 200,000 cubic metres of storage space.
• Groundwater at the site is being intercepted for treatment through a series of wells to improve water quality conditions in Haggart Creek.
• Daily water samples are being collected and a comprehensive environmental monitoring program is underway. View water monitoring results. 

Independent review

• An independent review is underway to determine the cause of the heap leach failure. The findings will help the government determine its next steps.
• The Independent Review Board will submit the report to the Receiver on June 30, 2025, then is expected to be published soon after. 

April 30, 2025

The Government of Yukon provided an update on spring melt conditions and water management at Eagle Gold Mine. Key points include:

Spring melt water management

• To prevent storage ponds from overflowing during the spring melt, the Receiver is releasing untreated contact water to keep water levels safe.
• This action follows the mine water strategy submitted to the Government of Yukon and supported by the First Nation of Nacho Nyak Dun.
• Contact water has come into contact with the open pit and waste rock but does not contain cyanide. It may exceed sediment and metal levels, so interim measures such as hay bale filtration and flocculant are in place. 

Environmental protection efforts 

• The discharge of untreated contact water was necessary to avoid uncontrolled release of water containing cyanide.
• Cyanide-contaminated water continues to be treated and discharged at 3,000 to 6,000 cubic metres per day.
• Water treatment meets federal quality standards but not site licence conditions due to elevated copper, cobalt and nitrite. 

Site preparations 

• One new storage pond has been completed, adding 91,000 cubic metres of capacity. Another is expected in mid-May, increasing capacity by 110,000 cubic metres.
• Additional infrastructure including sumps, ditches and pipelines is being used to manage clean meltwater and protect against contamination risks. 

The Government of Yukon will continue to provide updates.

See all previous current situation updates.

Department of Energy, Mines and Resources: [email protected]

Department of Environment: [email protected]

Employment Standards Office: [email protected] or 867-667-5944

Environmental Health Services: [email protected] or 867-667-8391

Workers’ Safety and Compensation Board - [email protected] or 867-667-5645

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