Gold being recovered at Yukon's Eagle mine site to help pay for remediation

The company responsible for the Eagle Gold mine in central Yukon has begun recovering gold from the site to help pay for remediation.

PricewaterhouseCoopers says it's collecting gold from cyanide water stored in ponds at the mine site. The process will destroy some of the cyanide in the ponds, and no additional cyanide will be introduced. No new mining activity is happening, the receiver said.

"It is too early to say the value of the gold being recovered," says a Yukon government news release.

It's been almost a year now since a catastrophic heap leach failure at the site caused the immediate closure of the mine, and the owner, Victoria Gold, to be forced into receivership. Since then, the territorial government's focus has been on containing and mitigating the environmental damage from the failure.

The government says the proceeds from the gold recovery will offset public money being spent on remediation.

The cost of remediation has gone up steadily since the receiver took over in August 2024. The initial cost was estimated at $100 million to $150 million. Last March, PricewaterhouseCoopers requested that the borrowing limit be increased to $220 million.

The Yukon government said it was prepared to provide the $115-million top-up, according to a receiver's report.

PricewaterhouseCoopers is planning to start the sales process for Victoria Gold's property, including the mine, this summer. Its most recent receiver's report says it will seek an order from the court allowing it to start that process before June 30.