Cantex Mine Development (TSX:CD) released a statement Tuesday saying it has temporarily halted exploration activities at its North Rackla project in the Yukon Territory at the request of the First Nation of Na-Cho Nyäk Dun (FNNND) following a heap leach pad failure at Victoria Gold's nearby Eagle Mine in June.
The Eagle Gold Mine experienced a significant heap leach facility failure, resulting in the movement of approximately 4 million tonnes of cyanide-laced ore, with some material moving beyond the embankment.
The incident led to elevated cyanide levels in nearby water bodies and the suspension of mine operations, prompting the Yukon government to consider seizing control of the site.
According to Cantex, the FNNND asked for the pause to allow them to prioritize their resources to address the impacts of this incident and nearby forest fires.
Cantex agreed to the pause and expressed concern for those affected by the spill and fires.
The company’s North Rackla project has high-grade silver-lead-zinc-germanium mineralization. Over 60,000 meters of drilling has been completed, defining significant mineralization.
Shares of Cantex fell around 7% on Tuesday afternoon to trade around $0.13 in Toronto.