01:08 PM EDT, 07/04/2024 (MT Newswires) -- Victoria Gold ( VITFF ) on Thursday offered its first update on the partial collapse of the heap-leach facility at its Eagle gold mine in the Yukon since the June 24 incident, saying it quickly moved to contain the escape of cyanide-laced solution from the pad, while its lenders issued the company a notice of default.

Operations at the mine remain suspended following the collapse, which caused no injuries. There was no estimate offered for a restart of operations. However the company moved to assuage worries the cyanide solution used to separate gold from the ore escaped into the local watershed.

"Within hours of the incident a pumping system was established to return water from the HLF material to lined containment ponds. Diversion systems have also been installed for the management of both non-contact and contact water and material. To date, continued environmental surface water quality sampling at multiple points downstream of the property has not detected any cyanide," the company said.

Victoria Gold ( VITFF ) said it received Notices of Default from its lenders under a Credit Agreement dated December 18, 2020. It did not say if the lenders planned further steps to recover monies owned. It also suspended guidance and said it will offer a further update by the end of next week.

The company's shares, which fell 82% following the incident, were last seen up $0.21, or 24%, to $1.08 on the Toronto Stock Exchange.

Price: 1.07, Change: +0.20, Percent Change: +22.99