Troilus Gold brings potential funding from ECAs to $1.3 billion
The company has signed an additional LOI with Export Development Canada worth $300 million.
One week after PricewaterhouseCoopers took over Victoria Gold (TSXV: VGCX), the cleanup effort at its former Eagle mine is focused on groundwater monitoring, while plans are coming together for an independent investigation of the accident.
Erin Dowd, the territory’s mine licensing manager, told reporters in a briefing on Friday that PwC and mining environmental management services firm Parsons are installing five groundwater monitoring wells at the site.
“One of our primary focuses is getting a better understanding of groundwater and capturing that water, if necessary,” she said. “We’re also looking at where water storage ponds can be constructed, and lining up the necessary resources to do that.”
The report on the remediation effort’s progress comes two months less a day since Victoria halted operations at Eagle after a failure in its heap leach pad caused a landslide releasing millions of tonnes of ore and cyanide-containing solution. The Yukon government wasn’t satisfied with Victoria’s ability to follow cleanup directives and appointed PwC the company’s receiver.
Just days later, the Victoria board resigned and PwC dismissed CEO John McConnell from his position. Yukon said it didn’t intend to drive the company out of business and believes mining could eventually restart at the site.
Victoria and PwC haven’t responded to requests for comment since the accident.
Dowd said the five groundwater wells are being set up by contractor CoreGeo in locations at a safe distance from the slide, which remains unstable.
Those wells are of particular importance because they’ll help determine the full extent of possible groundwater contamination, Lauren Haney, deputy minister for Yukon’s Department of Energy, Mines and Resources (EMR), said.
Representatives from Parsons, the First Nation of Na-Cho Nyak Dun (FNNND) and the Yukon government have also met to ensure proper water treatment methods are in place. Eagle sits on the traditional territory of the FNNND, which called for an inquiry into the accident and a pause to mining activities on its territory. Premier Ranj Pillai has said the government isn’t prepared to halt mining but could pause some mining activities.
Other ongoing remediation tasks this week and next include Pelly Construction building a protective berm and access road, and exploring safe locations for additional storage of contaminated water, Dowd said.
That work is regarded as critical over the next 80 to 90 days before temperatures drop in Yukon. The work is covered under a C$50 million payment by Yukon to PwC, with the larger cleanup effort estimated to cost C$100 million to C$150 million, according to court documents related to the receivership.
Haney said the government hasn’t drawn on the C$104 million surety bond that it holds with Victoria for remediation, though the option is still there.
“That estimate of around C$104 million and the security that we hold for the project was based on the conditions and liability of the site prior to the failure event.”
A timeline for remediation isn’t yet known, Dowd said.
Yukon owes contractors about C$300,000 for remediation work at Eagle, the government told The Northern Miner last week. Haney said she didn’t yet have updated figures.
Terms of reference for the independent probe into the accident have been finalized and sent to the FNNND for their review and feedback, EMR minister John Streicker said.
“The aim of the review will be to get to the heart of what happened at Victoria Gold’s mine site on June 24, to prevent it from occurring again, and to use these insights to improve our regulatory and licensing practices,” he said.
Potential board members have been identified and their names are expected to be announced next week.
Victoria has made no public statements about the company’s activities or financial status since its most recent news release about the receivership on Aug. 14.
Haney said that PwC must report information regularly to the court including Victoria’s financial situation.
In a rare interview with media since the accident, McConnell told CBC last month the company was sound financially for at least four to six months, but would likely need financing after that. The company held C$232.5 million in debt as of March 31, according to its first-quarter financials.
Asked if Yukon was considering working with PwC to bring back Eagle at a future date, Haney said the focus now is only on remediation that doesn’t preclude a restart of the mine.
