WHITEHORSE – The company that owns a Yukon gold mine that was the site of what the nearby First Nation has called an “environmental catastrophe” is facing a litany of legal challenges in Yukon, Ontario and British Columbia.
Both the Yukon government and the First Nation of Na-Cho Nyak Dun have filed documents in separate courts seeking the appointment of a receiver over Victoria Gold and its Eagle Gold mine.
A Vancouver-based law firm has also filed a proposed securities class-action lawsuit against Victoria Gold, alleging the company made misleading statements regarding the safety and environmental practices at the mine, particularly concerning its heap leach facility.
A collapse at the facility on June 24 led to a slide of cyanide-contaminated ore, releasing millions of litres of cyanide solution used in the gold extraction process.
A statement from Victoria Gold says it has been served with an application by the territorial government seeking the receivership and “related relief” after the failure, but it makes no mention of the First Nation’s application or the class-action.
The company says in the statement that it intends to oppose Yukon’s application served after the close of markets on Tuesday.
Na-Cho Nyak Dun Chief Dawna Hope told a news conference Wednesday that Victoria Gold is failing to do what is needed to protect land and water from the cyanide.
“This is unacceptable. Immediate steps are needed to address the millions of litres of toxic cyanide and other contaminants spreading from the mine site,” she said.
“Every mitigation measure must be implemented to protect the lands, waters, fish, wildlife and the people impacted by this disaster. We have no confidence that Vic Gold is in a financially stable enough position to repair the environmental damages its failures have caused.”
Yukon officials have said some water samples taken downstream have shown cyanide levels that “significantly exceed” guidelines for aquatic life.
Brendan Mulligan, a senior Yukon government scientist, told a briefing last week that “clear evidence” of groundwater contamination had also been found, though samples with the highest concentrations of cyanide were being “contained on-site.”
Health officials have said that contamination does not impact drinking water.
Hope said the court action is the only way the First Nation can ensure the steps necessary to mitigate the disaster are being taken.
The nation says it believes the matter will need to be before a court in Yukon, but it supports the territorial government’s application, which was filed in Toronto where Victoria Gold’s corporate office is located.
The First Nation’s petition in Yukon Supreme Court says the disaster is still unfolding and is impacting “the inherent, constitutional and treaty rights” of the First Nation.
It says the company’s attempts to contain the cyanide have been inadequate and it has refused to comply with government orders.
It says the company owes the First Nation more than $750,000 in royalty payments owed under the agreement that permits the mine to operate.
Victoria Gold CEO John McConnell did not immediately respond to a request for comment on the multiple court actions.
None of the allegations have been proven in court and the company has yet to file a defence.
The mine is located about 400 kilometres north of Whitehorse, on the traditional territory of the Na-Cho Nyak Dun, which has called multiple times for Victoria Gold to be removed from managing the cleanup.
Bill Slater, an environmental consultant working with the First Nation, told the news conference that there is not enough storage at the mine to contain the contamination and that water treatment has been ineffective.
Earlier this month the Yukon government said 68 dead fish were found following a discharge of treated water from the site.
“The lack of effective water treatment also means that existing storage on site is almost full. That includes the dynamic storage that they created by starting to pump solution back onto the heap again on July the 14th,” he said.
“If not addressed, this lack of storage could lead to discharge of contaminated solution directly.”
The nation has previously called for a public inquiry to look into “failures that caused this catastrophe and ensure it never happens again.”
Slater said the government has ordered the company to build more groundwater collection wells, but that has not happened.
A spokesperson for the Yukon government said its application, being heard in the Ontario Superior Court of Justice, won’t be made public until after the hearing on Wednesday.
— By Ashley Joannou in Vancouver
This report by The Canadian Press was first published Aug. 14, 2024.
