“One of our main focuses is to better understand groundwater and capture that water when needed,” she said. “We are also looking at where water storage basins can be built and providing the resources needed to do that.”

The report on the progress of the remediation work comes two months less than a day after Victoria suspended operations at Eagle after a failure in the tailings leach platform caused a landslide that released millions of tonnes of ore and a cyanide-containing solution. The Yukon government was not satisfied with Victoria’s ability to follow remediation instructions and appointed PwC as the company’s receiver.

Just days later, Victoria’s board resigned and PwC fired CEO John McConnell. Yukon said it had no intention of putting the company out of business and that it believed mining at the site could eventually resume.

Victoria and PwC have not responded to requests for comment since the accident.

Assessment of groundwater

Dowd said the five groundwater wells would be constructed by contractor CoreGeo at locations a safe distance from the landslide, which remains unstable.

These wells are particularly important because they will help determine the full extent of possible groundwater contamination, said Lauren Haney, deputy minister in the Yukon Ministry of Energy, Mines and Resources.

Representatives from Parsons, the First Nation of Na-Cho Nyak Dun (FNNND) and the Yukon government have also met to ensure appropriate water treatment methods are in place. Eagle is on the traditional territory of the FNNND, which has called for an investigation into the accident and a halt to mining activities on its territory. Prime Minister Ranj Pillai said the government is not prepared to stop mining but may halt some mining activities.

Other ongoing remediation work this week and next includes construction of a protective embankment and access road by Pelly Construction and the search for safe sites for additional storage of contaminated water, according to Dowd.

That work is considered critical over the next 80 to 90 days before temperatures drop in Yukon. The work will be covered by a $50 million payment from Yukon to PwC, with major cleanup work estimated at $100 million to $150 million, according to court documents related to the bankruptcy case.

Haney said the government had not yet drawn on the $104 million remediation bond it had given Victoria, but the option remained.

“This estimate of approximately $104 million and the security we hold for the project were based on the conditions and liability of the site prior to the failure event.”

A timetable for the renovation is not yet known, Dowd said.

Yukon owes contractors about $300,000 for remediation work in Eagle, the government said The northern miner last week. Haney said she does not yet have updated numbers.

Independent review

The terms of reference for the independent investigation into the accident have been completed and sent to the FNNND for review and feedback, said EMR Minister John Streicker.

“The objective of the investigation will be to establish the true facts of what occurred at Victoria Gold’s mine site on June 24, to prevent a recurrence and to use the lessons learned to improve our regulatory and licensing practices,” he said.

Potential board members have been identified and their names are expected to be announced next week.

Victoria’s financial situation

Victoria has not made any public statements regarding the Company’s operations or financial condition since its most recent bankruptcy press release on August 14.

Haney said PwC would have to provide the court with regular information, including on Victoria’s financial situation.

In a rare interview with the media since the accident, McConnell told CBC last month the company had been financially healthy for at least four to six months but would likely need financing after that. The company had $232.5 million in debt as of March 31, according to first-quarter financial reports.

When asked if Yukon was considering working with PwC to restart Eagle at a later date, Haney said the focus at this time was only on remediation measures, which do not preclude restarting the mine.