Victoria Gold’s Eagle gold mine heap leach pad failure

Q & A with Jonas Smith, executive director of Yukon Chamber of Mines

Q: As a conversation starter, can you please introduce yourself and talk to us about how you became the executive director of the Yukon Chamber of Mines?

A: My name is Jonas Smith, and I have had the good fortune to have played several roles relative to the mineral exploration and mining industry in the Yukon over the years. I previously served in similar capacities with both the Klondike Placer Miners’ Association and the Yukon Producers’ Group. I spent a decade being active in both territorial and federal politics. Most recently, I managed corporate affairs for a long-time local mineral exploration drilling contractor. The Chamber was actively recruiting for an executive director earlier this summer, and given my previous experience, I was encouraged to put my name forward for consideration.

Q: Please talk to us about the history of the Yukon Chamber of Mines; how does the Chamber support the mining industry in the Yukon?

A: Since its creation in 1943, the Yukon Chamber of Mines has worked to serve its dynamic membership and advance the interests of all those involved in the Yukon mining industry. This strong and diverse group includes exploration, mining, and service and supply companies, contractors, and individuals that have a direct or indirect interest in the mining industry. 

Q: What is the Yukon mining industry’s perspective on the unfortunate heap leach pad failure incident at Victoria Gold’s Eagle gold mine in Yukon? How did the mining community respond to this incident?  

A: The Yukon is a small jurisdiction, and the Yukon mining industry is very close. Thankfully, there were no significant injuries involved with the incident, but the human toll is considerable. A lot of our friends, neighbours, and colleagues have been affected, so that is front of mind. The situation continues to be dynamic, so it has been a challenge to get ahead of anything with new information coming out almost daily. But we want to see an independent investigation launched and the critically important environmental work addressed as soon as possible in the hopes that the mine can go safely back into production and put Yukoners back to work. 

Q: From your personal perspective as a mining industry expert, did you expect that such an incident could happen?

A: It certainly came as a shock, given our modern regulatory and safety regimes. And my heart sank when I realized the scope of the incident and its environmental, social, and economic repercussions. It will take time to identify the root causes.

Q: What is the Chamber’s view on the investigation to identify the cause of the failure?

A: From the beginning, the Chamber has been supporting the call for an immediate independent investigation to understand the cause of this unfortunate incident, to learn from it, prevent future occurrences, and maintain the high safety, environmental, and operational standards that Yukoners expect from us, and that we hold ourselves to. We urge the Yukon government to promptly initiate a comprehensive independent investigation, and we are committed to providing all necessary support expected from the industry to facilitate this process.

Q: The Yukon government has now entered Victoria Gold’s Eagle mine into receivership, subsequent to the company’s struggles with the scale of remediation work. In your opinion, was that the right move by the Yukon government? 

A: There are a lot of factors to consider — what is best for the environment, what is best for the taxpayer, and what is best for the employees and affected contractors — and I think it is still too early to make a judgement call. Initially, we would have preferred to have seen Victoria Gold remain on site for several reasons, as it would have demonstrated confidence in the situation and allowed the use of their cumulative expertise. I think the receiver will have many of the same challenges with the short timelines between now and the onset of winter, so we hope that they will engage as many of the people with experience with the site as possible, because at the end of the day, we all want the site stabilized and cleaned up as quickly as possible, by whomever is most capable. 

Q: Finally, how will Victoria Gold be impacted by the incident? And how will it impact the mining industry in the Yukon? 

A: Again, with the dynamic nature of the situation, it is difficult to tell. Victoria Gold’s future as a corporate entity is subject to several factors, but I like to think that the people themselves will persevere and continue to contribute to mining in the territory, as they have demonstrated they have a lot to offer. As for the impacts on mining, the Yukon is still a world class mining destination with a modern, comprehensive regulatory regime, and most importantly, is bestowed with enviable mineral wealth and potential. The Eagle resource is not going anywhere, and there are many other exciting properties across the territory. The sooner we can incorporate any lessons learned from the Eagle incident, the sooner we can reassure confidence in the Yukon as one of the best regions in the world to invest in. 

Responses to the questions of the Canadian Mining Journal were provided by Jonas Smith, executive director of Yukon Chamber of Mines, on August 21, 2024.