You mean like Mercury from gold mining? Seems like we have had a bit of that here in CA.
Actually I have read reports about the very thing you have here. I was going to see if I could dig up the article I read but have not had time. No removing this dam would not bring the valley back.
BTW, if the dam is breached, anyone recovering that mercury would probably recover a significant amount of gold with it. Get paid to do the enviro-remediation and mine gold as a byproduct. Hmmmm.