Safety, Drug-Use Concerns Emerge at Victoria Gold’s Eagle Mine Following Major Landslide

A recent investigation by The Northern Miner has uncovered serious allegations of safety negligence at Victoria Gold‘s (TSXV: VGCX) Eagle mine in Yukon, following a major landslide that halted production on June 24. Current and former employees, speaking anonymously to the publication, have described a work environment where safety concerns were routinely sidelined in favor of maintaining production levels.

The incident, which involved a heap leach spill and landslide, has had severe financial consequences for Victoria Gold. The company’s share price fell by over 85% in late June, reducing its market capitalization to C$54.1 million while facing C$232.5 million in debt payments without current cash flow.

According to The Northern Miner’s sources, Victoria Gold allegedly engaged in practices to avoid filing Workers’ Compensation Board claims. Injured workers were reportedly kept on payroll and assigned remote tasks to circumvent proper injury reporting procedures, a tactic aimed at keeping insurance rates low and limiting compensation costs.

The June landslide was not an isolated event. The Yukon government confirmed that a smaller landslide occurred at Eagle in January. Employees claim that production continued after this earlier incident, contrary to regulations requiring a safety stand-down.

Further compounding these issues, workers allege widespread drug and alcohol use at the supposedly dry camp. The Northern Miner reports that former employees described lax enforcement of substance abuse policies, with drug testing only occurring in specific circumstances involving machinery accidents.

“Unless they were caught and tested, it was basically open range,” a former safety worker told the publication. “A cocaine-addicted man came to me and said, ‘This is Disneyland for an addict like me.’ We just turned a blind eye to it because nobody wanted to dig into the deeper problem of how to control it.” 

As of this writing, Victoria Gold has not publicly responded to these allegations. 


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Tudor Gold x American Creek: Consolidating A Massive Gold Project

Aura Minerals: The Era Dorada Underground PEA

Gold Is Now Smart Money’s End Game | Doug Casey

Recommended

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Emerita Resources Formally Appeals Administrative Ruling On Aznalcóllar Related To 2017 Complaint 

Related News

Victoria Gold Announces Share Buy-Back Program

Victoria Gold Corp. (TSX: VGCX) this morning announced its plans to start a normal course...

Thursday, May 27, 2021, 09:44:00 AM

Victoria Gold Mine Collapse Causes Pause In Mining And Exploration In Entire Region

The collapse of Victoria Gold’s (TSX: VGCX) heap leach pad at its Eagle Mine in...

Tuesday, July 23, 2024, 10:22:23 AM

BMO Reiterates $21 Price Target On Victoria Gold After Production Results

On January 6th, Victoria Gold Corp. (TSX: VGCX) announced its fourth quarter and annual production...

Saturday, January 8, 2022, 01:08:00 PM

Victoria Gold Reports 55,827 Ounces Produced At Eagle Gold Mine In Q3 2021

Victoria Gold Corp. (TSX: VGCX) announced this morning its production results for Q3 2021 at...

Tuesday, October 12, 2021, 11:10:00 AM

Canada Invests $60 Million in Critical Minerals for Northern British Columbia and Yukon

Canada is injecting fresh funds to the development of critical minerals in the northern regions...

Tuesday, September 24, 2024, 02:23:09 PM