The court-appointed receiver overseeing Yukon’s Eagle Gold Mine has launched a lawsuit against the mine’s former engineering contractor, alleging design and construction decisions contributed to the catastrophic heap leach failure that triggered one of the territory’s largest mining-related environmental incidents.
PricewaterhouseCoopers (PwC), acting as receiver for Victoria Gold Corporation, filed the claim in June in the Supreme Court of British Columbia against JDS Energy and Mining.
The lawsuit stems from the June 24, 2024, failure of the Eagle Gold Mine’s heap leach facility, when nearly half of an estimated four million tonnes of ore treated with cyanide solution slid from the heap and beyond the containment area.
An independent investigation released in 2025 concluded that the failure resulted from multiple contributing factors. The report found that a layer of ore within the heap was not draining properly, allowing material above it to become saturated until the heap catastrophically failed.
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According to PwC’s statement of claim, JDS recommended against using cement agglomeration during construction of the heap leach facility. The process binds fine ore particles together while maintaining permeability, allowing solutions to drain through the heap more effectively.
The receiver also alleges JDS failed to adequately address the risks associated with year-round stacking of material on the heap leach pad, which PwC says created frozen zones within the pile that contributed to instability. In addition, the lawsuit claims JDS deviated from construction plans prepared by another engineering firm and procured a substandard geomembrane liner intended to prevent contaminants from leaching into the surrounding ground.
PwC is seeking damages for the loss of mining operations, property damage, legal expenses and environmental cleanup costs. The claim does not specify a dollar amount.
The allegations have not been proven in court.
Meanwhile, efforts to sell the Eagle Gold Mine continue under the receivership process.
On April 23, the receiver, with the consent of the Yukon government, entered into an exclusivity agreement with Singapore-based Boroo Pte. Ltd. to negotiate the potential purchase of the Eagle Gold Mine and certain related assets. During the exclusivity period, Boroo will conduct additional due diligence and work toward a definitive sale agreement.
The Yukon government said it helped establish criteria for the sale process to ensure any prospective purchaser is responsible, experienced and financially capable of operating the mine.
The territorial government has also advanced funding to support site remediation and the receiver’s activities during the insolvency proceedings. Those advances are secured by a super-priority charge over Victoria Gold’s assets, with the maximum receivership loan remaining at $220 million. Officials have said a successful sale of the mine could provide an opportunity for the government to recover some or all of those funds.
