The Yukon region of Canada stated that a waterway near Eagle Mine, owned by Victoria Gold Corp., detected an increase in cyanide levels due to equipment failure and landslides.
Yukon's Minister of Mining, John Streicker, told local media on Thursday that an increase in cyanide concentration was detected in a nearby creek in the mining area, which "may affect fish". Just a few hours ago, Victoria Gold Corp., headquartered in Toronto, countered that the company did not detect an increase in cyanide levels downstream.
The Canadian gold producer suspended operation of its largest mine, Eagle Mine, in the Yukon region last week due to heap leach failure. Heap leaching is the process of stacking mined ore and spraying it with cyanide-containing water.
After the incident, Victoria Gold Corp.'s stock price plummeted by 82%. The company's stock price rose 9.2% on Thursday to C$0.95 after previously denying an increase in cyanide levels.
Victoria Gold Corp. announced on Thursday that it will continue to suspend production and has received a default notice from creditors under the 2020 credit agreement.