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This was far from uncommon – although in those days malaria was known as “ague”, and it plagued such projects as the Erie & Ohio canals in the early 1800s:
“Men did most of the work, though horses and oxen were used to pull stumps or dig tree roots. Many workers were gripped by a cold-shaking delirium they called “the ague” or “the shakes” It was really malaria, but no one understood the nature of disease in those days. They didn’t know that insects – who thrive near pools of stagnant water – transmitted the disease.”
http://www.suite101.com/content/the-ohio-erie-canal-a110338#ixzz1GeQjPx68
According to another report:
“There were about 6 deaths per mile of canal built caused by ague, cholera, fights and murder.”
Deaths from ague were also common in Europe and England. Contrary to popular belief, malaria has nothing to do with tropical conditions. Draining the swamps and better public health is what eliminated malaria in non-tropical regions.