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

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

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

Victoria Gold Faces Charges After Landslide and Potential Cyanide Leak

Victoria Gold‘s (TSX: VGCX) Eagle mine in Yukon, Canada, is facing charges following a significant...

Monday, July 1, 2024, 01:50:00 PM

Victoria Gold Reduces Production Guidance By 10% For 2021 Two Weeks Before Year End

Victoria Gold (TSX: VGCX) this morning had some negative news, in that they have reduced...

Thursday, December 16, 2021, 08:36:08 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

Eagle Gold Mine For Sale: Buyer Should Have Mining & Heap-Leach Experience And Disclose Plan To Reopen

An Ontario court has approved the sale process for the Eagle gold mine in Yukon,...

Monday, August 25, 2025, 12:17:00 PM