Victoria Gold has been directed by a Yukon mining officer to create and implement two new water management plans for its Eagle Gold mine site. The orders, issued this week by natural resources officer Russell McDiarmid, focus on addressing concerns over groundwater interception and the management of spring melt, which have become significant issues since a heap leach failure at the site earlier this year.
New Water Management Plans Required by December and April
The first plan, which is due by December 15, is focused on groundwater interception. It requires Victoria Gold to detail the infrastructure needed for intercepting groundwater at the mine site, as well as providing data on the volume and quality of water expected to be produced from each interception location.
The second plan, due by April 15, must cover both surface and groundwater management. Its primary objective is to ensure that there is adequate storage capacity to handle spring freshet run-off, while preventing “uncontrolled discharge” of untreated water into the environment.
Since Victoria Gold is currently in receivership, PricewaterhouseCoopers (PwC), which has been managing the company’s affairs since August, will be responsible for executing these water management plans.
Legal Direction Follows Heap Leach Failure
These latest directives mark the fourth such order issued to Victoria Gold officials since the June heap leach failure at the Eagle Gold mine. The failure, which saw an estimated four million tonnes of ore treated with cyanide solution slide off the heap, resulted in approximately half of the material leaving its designated containment area.
The heap leach incident raised immediate concerns over the storage and treatment of contaminated water at the mine. Since the incident, the company has faced significant challenges managing the large quantities of cyanide-laced water accumulating at the site.
Water Contamination and Storage Challenges
According to an emergency water licence amendment application filed by PwC, approximately 508 million litres of cyanide-contaminated water were being held in storage ponds on-site as of November 4. To put this volume into perspective, it is equivalent to filling 203 Olympic-sized swimming pools. In addition, about 250 million litres of contaminated water were being re-circulated onto the heap leach facility, with even more water being stored in the in-heap pond.
However, the situation is growing more dire by the day. The amount of contaminated water at the site is increasing at an estimated rate of two million litres per day due to ongoing inflows from the surrounding environment. In addition, Victoria Gold must intercept and store up to three million litres of groundwater daily.
The inspector’s report indicates that with current storage capacities, the mine is on track to exceed its ability to contain and treat this growing volume of contaminated water by February 2025. This forecast does not even account for the additional volume of water that will need to be stored and treated when snow and ice begin to melt in the spring, which could add an estimated 500 million litres to the total volume.
Request for Emergency Water Discharge
In response to the overwhelming volume of water, PwC has submitted an emergency application requesting that the company be temporarily permitted to discharge water that is “non-acutely toxic” but contains higher levels of contaminants than are currently allowed under the mine’s water treatment standards. This request is made in an effort to prevent the on-site storage capacity from being exceeded.
Despite the urgency of the situation, PwC has been working to upgrade the on-site water treatment plant to better handle the cyanide contamination. However, this work is still in progress, and the treatment facility is not yet fully equipped to process all of the contaminated water on-site.
The Road Ahead for Victoria Gold
As Victoria Gold faces continued scrutiny and regulatory pressure, its future remains uncertain. The company’s financial struggles, exacerbated by the heap leach failure and the challenges in managing contaminated water, have resulted in its receivership. PricewaterhouseCoopers is now tasked with overseeing the implementation of these crucial water management plans to mitigate further environmental risks and comply with regulatory requirements.
The new water management plans are expected to provide a detailed approach to addressing the growing volume of contaminated water at the Eagle Gold mine. However, with spring melt looming and the increased flow of contaminated water expected in the coming months, there is mounting concern about whether these measures will be sufficient to avoid a larger environmental crisis.
As of now, all eyes will be on PwC as it works to manage the situation, while also preparing for the upcoming deadlines. The company’s ability to contain and treat the contaminated water will be a determining factor in its future operations and in avoiding additional legal and environmental challenges.
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