Victoria Gold provides update on heap leach incident

Victoria Gold Corp. (Victoria) provides an update on the ongoing incident at the Eagle Gold Mine’s heap leach facility (“HLF”).

The Company continues to place a high priority on the safety of its employees and environmental protection. As previously reported, Victoria maintains open communication with the Government of the Yukon, the First Nation of Nacho Nyak Dun (“FNNND”), the Village of Mayo, the Yukon Workers’ Safety and Compensation Board and other relevant authorities.

Mitigation

In terms of environmental impact, as mentioned above, within hours of the incident, a pumping system was set up to return water from the HLF material to lined retention basins. In addition, diversion systems for contact and non-contact water and material handling were installed.

Water sampling

Victoria collects water samples daily from multiple sample locations at the Eagle Mine. Several of these sample locations are downstream from the HLF accident site. Final results obtained following the Company’s July 4, 2024 news release showed that a sample collected on July 2, 2024 from Haggart Creek downstream contained trace cyanide; the sample had a total CN content of 5.7 ppm. Samples collected from this location on July 2 and later on July 3 and 4 showed no evidence of cyanide.

The Company received final results from all locations where water quality was measured, including samples collected to this point. No further cyanide detection was made other than in this one sample. To be clear, based on the final sample results, the Company has not exceeded its downstream water quality objectives under its Water Use License.

Heap leaching plant and infrastructure

Since production began, approximately 38.9 million tonnes of ore have been unloaded on the HLF. The Company estimates that 4 million tonnes of ore, or approximately 10% of the total ore volume, was moved within the HLF during the HLF incident, according to an independent investigation of the HLF.

The Company estimates that approximately half of these 4 million tonnes, or 2 million tonnes, were transported beyond the HLF dam, or approximately 5% of the total tonnes of ore within the HLF. An impartial third party is currently evaluating the plan the Company has developed to stabilise the HLF.

The HLF incident did not impact the majority of on-site infrastructure. The incident did not impact the Eagle open pit mine, associated mobile equipment and mining infrastructure, primary, secondary and tertiary crushers, main conveyor, ADR plant, lined water retention ponds, water treatment plant, storage facilities, warehouse or office complex.

According to observations to date, the dam, pipelines, pumps, lining, two short sections of fixed conveyor belts and a small part of the electrical infrastructure on or near the HLF are among those affected.

Root cause analysis

An investigation is currently underway to determine the cause of the incident. In addition to working with outside technical experts hired by the FNNND and the Yukon Government, the Company has contacted its HLF Engineer of Record.

Production is still suspended and cannot resume without approval from the Yukon Director of Mineral Resources. Victoria will continue its efforts to reduce environmental impacts while putting worker safety first. There is no assurance that the Company will receive the necessary approvals to resume operations or that it will have the necessary resources to repair damage to facilities and equipment, remedy accidental impacts or resume operations. The Company will provide further updates in due course.