08:49 AM EDT, 06/25/2024 (MT Newswires) -- Osisko Gold Royalties ( OR ) (OR.TO, OR) slipped 1.4% in premarket New York trading after the company on Tuesday said it is monitoring the situation at Victoria Gold's ( VITFF ) Eagle gold mine in the Yukon following a Monday collapse of the mine's heap leach pad.

Victoria Gold ( VITFF ) said after market close Monday operations at the mine have been suspended following the collapse. While no injuries resulted from the incident, the company said there was some damage to infrastructure and portions of the pad escaped environmental containment. Heap leach mining uses a cyanide solution to extract gold from ores.

The Yukon News reported the failure came after a landslide at the site, similar to a February collapse of the leach pad at SSR Mining's ( SSRGF ) Copler mine in Turkey, which killed nine workers. Production there is not expected to resume until 2026 at the earliest.

Osisko holds a 5% net smelter royalty on the mine's production until 97,500 ounces of gold have been delivered and a 3% NSR royalty afterwards.

"Submitted photos appear to show a large slide in the vicinity of the mine's heap leach facility and gold recovery plant. We have little information to go on at the moment; however, assuming some lost production from the asset would have a negative impact on our assumptions for OR," National Bank Financial analyst Shane Nagle said in a note.

Osisko shares were last seen down US$0.22 to US$15.35 in premarket trade. They closed down $1.21 to $21.26 Monday on the Toronto Stock Exchange. Victoria Gold ( VITFF ) closed up $0.13 to $7.43 Monday in Toronto.