No cyanide risk to drinking water after Victoria Gold accident, Yukon government says

Drinking water is safe to consume after the heap leach pad (HLP) accident last week at Victoria Gold’s (TSXV: GCX) Eagle mine in Yukon, a health official said Thursday, but the company has defaulted on repaying debt.

Dr. Sudit Ranade, Yukon’s Chief Medical Officer of Health made the comment during a news briefing after the results of water samples taken after the accident on June 24 were received this week from a laboratory in British Columbia.

“It's very reassuring that the water samples that have come back from the regulated drinking water system show no concern, and that is also backed by the watershed analysis that's been done by the Department of Environment,” Ranade said.

Operations were suspended at Eagle, Yukon’s only producing gold mine after the company reported that a failure at its HLP caused an accident and spill that damaged infrastructure. Victoria shares plunged 84% last week, now valuing the company at $64.3 million. The mine is about 375 km north of Whitehorse.

However, Ranade said people should avoid recreational water use in the immediate vicinity of Haggart Creek near the mine as a precaution. Results there showed elevated levels of cyanide at 0.04 mg per litre, John Streicker, Yukon’s minister of energy, mines and resources said at the briefing.