Victoria Gold returns to normal operations after Yukon wildfire evacuations

Victoria Gold (TSXV: GCX) reported on Monday that its Eagle gold mine in the Yukon has resumed operations, having weathered the impacts of wildfire activity in the Canadian territory with the help of the Yukon Wildland Fire Management team.

On July 30, the company reported a partial evacuation of the Eagle mine site due to the proximity (approximately 4 km) of the East McQuesten wildfire, leaving only “a volunteer contingent of employees” nearby to operate and maintain critical operational assets. A second evacuation occurred on Aug. 4.

All in all, a total of 335 people were evacuated off the Eagle mine site, either to Banyan Gold‘s (TSXV: BYN; US-OTC: BYAGF) exploration camp nearby, the Silver Trail Lodge or into Whitehorse. By then, the fire was about 600 sq. km in size, approaching the mine from the southwest.

Since then, favourable conditions have allowed for the return of employees to the site, Victoria stated in Monday’s press release. Full production rates at the operation were resumed on Aug. 11, and Yukon Wildland Fire Management demobilized from Eagle two days later.

Separately, the evacuation order for the village of Mayo was lifted on Aug. 13 and the company has re-established its normal supply chain and crew change logistics, Victoria said.

“We are pleased that operations have returned to normal. Rainy conditions over the past week have significantly reduced the wildfire risk near Eagle,” said John McConnell, president and CEO of Victoria Gold.

“We would like to thank our employees and contractors for their excellent response to this situation, which allowed a smooth restart of production. The Yukon Wildland Fire Management team provided a comprehensive, professional response to the East McQuesten wildfire for which we are grateful.”

Victoria’s Eagle mine is an open-pit, heap-leach gold operation located about 275 km east of Dawson City. It is the only producing gold mine in the Yukon, having begun commercial production in 2020.

Meanwhile in the neighbouring Northwest Territories, exploration operations in and around Yellowknife were suspended last week as the territorial capital was evacuated due to approaching wildfires. Companies had pulled their staff out of the city or were making accommodations for those who live in any of the several communities evacuated.   

Shares of Victoria Gold were up almost 2% to $6.73 apiece in early afternoon in Toronto on Monday, giving the company a market capitalization of $447 million.