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A few weeks ago, Victoria Gold’s Eagle Gold mine suffered a catastrophic failure of it’s heap leach pad at it’s Yukon property.
We wrote about it here.
At first, the company indicated there wasn’t any damage to the waterways, but the local first nations group disagreed and said they found dangerous levels of cyanide in the rivers and streams in the area.
The Yukon government imposed a requirement for the company to come up with a water treatment plan for the contaminated water, but Victoria Gold has failed on that.
Now, the First Nation of Na-Cho Nyäk Dun ("FNNND") has requested a halt to all mining activities in the area.
This not only effects Victoria Gold, but also Cantex Mine Development Corp. (TSX-V:CD, Snowline Gold (TSX-V:SGD) and Fireweed Metals (TSXV: FWZ).
Gotta love the takes at ceo.ca/SGD as $SGD.v shares continue to melt lower and people rationalize their losses. FNNND has been VERY CLEAR that they do not want ANY mining on their land. nndfn.com/wp-content/upl…
— Ben Kramer-Miller (@TheWealthMiner)
4:09 PM • Jul 23, 2024
Fireweed is a $200M+ market cap company, can they really do that?
Yes, and they will.
Well technically, the FNNND is “requesting” a halt to mining activites, not requiring it.
But it’s not like one of these companies is going to get on the groups bad side by ignoring the request.
Cantex announced they’re halting activities: https://48p318.p3cdn1.secureserver.net/wp-content/uploads/2024/07/2024-07-22-Program-suspension.pdf
Snowline said they have “made adjustments” to the upcoming program, which is already late to start. Exploration usually ends around October up there, and with this delay, I can’t imagine Snowline will get anything done this year.
The wording in snowline gold’s latest news is not encouraging…
Word wizardry for "we're shut down and don't know when we can restart exploration".
Strategically buried at the bottom of the longest update ever.
$sgd.v
— FibSixOne8 (@FibSixOne8)
1:11 PM • Jul 24, 2024
How are the stocks holding up for these 3 companies?
Not good.
Snowline is down 10%, Cantex is down 15% and Fireweed is also down 15%.
When one company makes a mistake, it can have ripple effects in the industry.
Mining activites in the Yukon is now at risk of shutting down for a very long time.
👋 Colton, Stock Monster.
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