08:05 AM EDT, 07/12/2024 (MT Newswires) -- Victoria Gold ( VITFF ) on Friday provided an update on the heap leach facility (HLF) incident that occurred at the Eagle Gold Mine in the Yukon on June 24, where two million tonnes of material escaped the facility along with 300,000 cubic litres of cyanide solution.

The company, which is sampling water daily from multiple locations at the Eagle mine, said "one trace detection" of cyanide in a downstream sample from Haggart Creek was collected on July 2.

Before than, and on July 3 and July 4, samples collected at the same location did not detect any cyanide, the company said. However, Yukon mines minister John Streicker on July 4 said elevated cyanide levels of about 40 parts per billion had been collected in a creek, according to several media reports.

Victoria Gold ( VITFF ) also said it has not exceeded its Downstream Water Quality Objectives under its Water Use License. It has previously been reported that publicly available inspection reports from the Yukon government show Victoria Gold ( VITFF ) was in violation of water management protocols in October 2023.

Production operations remain suspended and may not restart without authorization from the Yukon Director of Mineral Resources. The company last week received notices of default from its creditors.

The HLF uses a cyanide solution to percolate through stacked layers of ore to dissolve gold.