The collapse of Victoria Gold’s (TSX: VGCX) heap leach pad at its Eagle Mine in the Yukon is having spillover effects on the rest of the industry within the region. Cantex Mine Development (TSXV: CD) this morning indicated that it was forced to halt exploration activity at its North Rackla project, which is located 120 kilometres away, as a result of the mine’s failure.
The First Nation of Na-Cho Nyak Dun, or FNNND, whoms treaty territory contains both Cantex’s North Rackla project as well as Victoria Gold’s Eagle Mine, has requested a pause to all mining and exploration on their traditional territory.
The decision is also expected to impact Hecla Mining’s (NYSE: HL) Keno Hill project in the region, which is expected to produce 2.7 to 3.0 million ounces of silver this year, as well as Snowline Gold (TSXV: SGD), whom is currently exploring the Rogue project. Neither operator however has publicly stated if they have been impacted as of yet.
The pause in mining and exploration was requested by the Department of Lands and Resources of the FNNND, which is prioritizing resources to deal with the fallout and impacts related to the leach pad collapse at the Eagle Mine, as well as complications related to ongoing forest fires. The Nation initially announced such a pause back on July 3, however it appears they are now requesting from companies that such activities halt.
Sponsored · Altamira Gold Corp.
“There must be an independent investigation and review immediately to understand environmental impacts from this disaster. All mining activity must pause until there is a land use plan that limits development and includes rigorous oversight and enforcement of mining and industrial operations on our Territory. We will pursue every
available avenue, including legal options, to protect and preserve our rights and to ensure that this environmental catastrophe is addressed and the lands and waters of our Territory are safe for the fish, wildlife, and people that have relied on them for generations.”
The Nation has said that nearly half of all mining activity within the Yukon are found within its territory. Historically, less than 1% of projects are denied the ability to move forward, with little oversight or enforcement of operations being implemented. The Nation however has said this is no longer tenable.
READ: Safety, Drug-Use Concerns Emerge at Victoria Gold’s Eagle Mine Following Major Landslide
A timeline for the resumption of mining and exploration activities was not provided.
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.
