04:40 PM EDT, 07/26/2024 (MT Newswires) -- The Yukon has taken over some of the environmental mitigation efforts stemming from a major gold processing plant failure in the territory because operator Victoria Gold Corp. ( VITFF ) failed to meet a key government directive, The Globe and Mail is reporting Friday.

The report noted four million tonnes of cyanide-laced rocks collapsed on June 24 at an outdoor heap-leach facility at the Eagle gold mine in central Yukon operated by Victoria Gold ( VITFF ). Two million tonnes of material breached the company's containment zone and elevated levels of cyanide were later found in a water body adjacent to the mine.

Eagle is located about 375 kilometres north of Whitehorse and 85 kilometres north of the village of Mayo, on the traditional territory of the First Nation of Na-Cho Nyak Dun.

The report noted Yukon over the past few weeks had issued Victoria Gold ( VITFF ) with a slew of directives aimed at preventing another landslide and managing contaminated water onsite. One of those directives, it said, is building a safety berm in the area of the rockslide that will allow the installation of wells to capture contaminated water that will be pumped it to the surface for treatment.

Lauren Haney, Yukon's deputy minister of energy, mines and resources in a news conference on Friday said the company had failed to meet several deadlines this week, including the need to start construction of both an access road and the berm itself.

Consequently, the report noted, Yukon has stepped in directly and engaged its own contractors to do the work. For now, it said, the job is on hold because of a nearby forest fire that it is threatening road access. Once the danger passes, the work on the berm is expected to take about two weeks, Ms. Haney added.

(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)