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Update on the Emergency Response to the Eagle Gold Mine Crisis

On June 16, 2026, Following the drastic on-site water volume increase due to the spring melt, site conditions have seen a welcome drop in water volume and, therefore, cyanide-affected water.

Current projections are that, assuming the water treatment plant performs well, the inventory of cyanide-affected water on the site may be significantly reduced over this summer and fall. However, NND cautions that significant improvement is still required in the water treatment plan, particularly when it comes to reliability and reduction of system downtime. If the projected year-over-year reduction in the cyanide water inventory stored on the site can be achieved, critical improvements and repairs to several leaking cyanide storage ponds should be a priority for VGC and Yukon to deliver.

Water quality monitoring has now begun for the 2026 season, and water quality objectives are now being met, with the exception of nitrites at monitoring station W99.

The fish protection, fish monitoring, and aquatic life monitoring plans are well underway. NND will share these plans as soon as they become available.

This month, there has been a lot of public discourse surrounding on-site spending. The clean-up of cyanide solution and mitigation of further environmental destruction comes with a hefty price tag. As the Receiver reports, over $76 million is estimated for 2026 alone. This is the cost of environmental protection in the wake of a mining disaster under mismanaged projects. To make matters worse, this cost is environmental mitigation under a "care and maintenance" definition. A true remediation and clean-up program that eliminates the risk of future impacts and restores the site is not, to our knowledge, even being contemplated or budgeted for as of yet. In many ways, FNNND has been advocating for further work and further budgeting in order to take the necessary measures to protect our lands, waters, animals, and people from further harm.

This is the price tag that comes with Yukon Government, the mining regulator, failing to do its job. Failing to create a standard of safe, responsible and accountable mining in the Yukon is what led to the Eagle Gold Mine disaster. And as the Yukon taxpayers can see, disasters are expensive and leads to further Investment uncertainty.

If we want profitable mining in the Yukon, it must be adequately and effectively regulated.

FNNND will continue to provide regular updates on the Eagle Gold Mine site management and site conditions throughout the 2026 season.

Update on Activity at Eagle Mine Site

Site Construction

In May 2026, VGC completed an investigation program targeting the area of the heap involved in the June 2024 failure. Testing and analysis from the program are expected to take several months. The results will be informative for guiding further work to fully remediate or close the damaged heap.

Beyond the investigation program, VGC had not budgeted for any further work on the heap for 2026-2027, a significant disappointment to NND. However, the development of some cracking in the upper face of the heap has forced VGC to reconsider conducting some additional recontouring and buttressing this season. The cracking appears to be associated with the settlement of heap materials pushed over the upper failure escarpment last winter. We understand that the buttressing of the affected area is being planned out of an abundance of caution.

NND continues to advocate for further work on the heap to remove the existing hazards that the so-called “lower escarpment” represents and to permit investigations of the buried embankment dam and former seepage collection vault.

Storage

Storage on site remains the only method to manage the containment of the cyanide solutions. The current pond capacities as of June 3, 2026:

● Events Pond | size: 266,000m3 | 69% full (to freeboard capacity) of cyanide solution; slowly being pumped to the Control Pond for treatment.

● Control Pond | size: 79,000m3 | 82% full of cyanide solution that is pumped to the Water Treatment Plant; a plan to fix known leaks in this pond is presently being developed.

● IROSA Pond 1 | size: 26,000m3 | 66% full of non-cyanide mine water that is discharged to Haggart Creek after settling, single liner.

● IROSA Pond 2 | size: 85,000m3 | 3% full of cyanide solution, new double liner, but inner liner known to be leaking with leakage captured on outer liner in leak detection system. Future use of this pond to be determined.

● Pit Pond 1/2 | size: 180,000m3 | 91% full of cyanide solution, pond now known to be leaking and it is being pumped out to find where the liner is damaged.

● Pit Pond 3 | size: 74,000m3 | 82% full of partially treated cyanide solution. This pond has been partially pumped down to make room for storing Pit Pond 1/2 water during repairs.

● 1075 Pond | size: 90,000 m3 | 86% full of cyanide solution undergoing trial biological treatment.

In-Heap Pond on the Heap has an unknown capacity and an unknown amount of cyanide solution but there has not been enough solution in it to pump during most of the last month.

The still unknown level of damage to the heap continues to result in seepage of contaminants into the environment and groundwater.

Water Treatment, Groundwater Collection, and Discharge

Currently, discharge levels are averaging nearly 7,000m3 per day, but VGC hopes to increase this to as much as 12,000 m3 per day as the season progresses.

During May 2026, 154,000 m3 of cyanide-affected water were treated and released. Additionally, another 102,700 m3 of non-cyanide-affected water was also treated. The non-cyanide-affected water, also known as “contact water,” undergoes a different treatment method in order to remove the suspended sediments (very fine materials that do not settle and are challenging to collect) as well as other heavy metals such as zinc and cadmium. There have been some challenges with determining the correct process, but effective treatment seems to now be underway.

Other than at the peak of the freshet, the combined releases of the two types of treated water appear to be meeting the water protection goals in Haggart Creek. If this performance can be maintained, fish barriers in Haggart Creek may not be necessary this year.

Contaminated groundwater continues to be collected for storage and treatment from 11 wells and a series of seeps and sumps. As the freshet has proceeded, groundwater has continued to be intercepted before it enters Haggart Creek. These collection volumes have been increasing, with the latest estimates about 1,450 m³ per day. Contamination levels vary widely by well, but many show a decreasing trend.

There were no reported spills or leaks during May 2026.

NND's Water Monitoring Update

Planning for summer environmental monitoring is well underway. Some of FNNND's input has been accepted by Stantec into the draft fish protection plan. These plans will be shared once finalized.

Downstream water quality testing is showing that water quality objectives are now being met, with the exception of nitrites at monitoring station W99. This is likely due to discharge from IROSA Pond 1's contact water discharge.

Methyl mercury was measured above BC Ministry of Environment guidelines for freshwater aquatic health May 9, 2026, at W4-Mix and W99.

As the water quantity on site has lessened after the initial spring melt, it is positive to see water quality improve.

NND's Aquatic Health & Fish Monitoring Update

Fish Monitoring
Planning is underway to collect a third year’s data on fish in the Haggart Creek watershed. This year’s field sampling will be conducted in August and involve crews from FNNND Lands, Environment Yukon, and DFO. NND Lands staff have reviewed a recently completed report on last year’s monitoring. Another year of data, ideally with no moving of fish required to avoid toxic water required, will be needed to more fully assess effects of the heap leach pad failure.

In collaboration with Environment Yukon, FNNND Lands has been analysing samples of tissue from grayling in Haggart Creek and moose in the McQuesten River watershed to evaluate whether there has been any accumulation of contaminants that would be of concern. We have results back from the last two years and these do not indicate any problems to date.

Other Aquatic Life
Planning is underway to collect a third year’s data on aquatic insects and algae in the Haggart Creek watershed this summer. Field crews will be from FNNND, DFO, and Environment Yukon staff and consultants. We are waiting for reports from consultants on last year’s sampling and toxicity tests to evaluate effects of the heap leach pad failure to date.