Millions of litres of cyanide solution escaped containment at the mine
The company also says in an update that there’s “no assurance” it will receive the authorizations necessary to restart production either.
A Yukon government expert previously said 300 million litres of cyanide solution escaped containment at the mine after an ore slide at a heap-leach facility that uses the solution to extract gold from ore.
Victoria Gold says in a statement Friday that a single water sample taken from Haggart Creek downstream of the mine on July 2 had shown an elevated cyanide level.
It says that, based on a later July 4 sampling, the firm has not exceeded allowable levels according to its water-use licence.
Victoria Gold said in a previous statement that it had received notices of default from its lenders under a 2020 credit agreement.