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Alexco receives amended water-use licence for Yukon mines

21st May 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Vancouver-based Alexco Resource Corp on Monday said it had received a water-use licence amendment from the Yukon Water Board, which allowed the company to process mill feed from its Onek and Lucky Queen mines, in the Keno Hill silver district, in the Yukon Territory.

Alexco said production from these mines would add to that of its producing Bellekeno mine and was not included in the 2013 production guidance of between 1.9-million and 2.1-million ounces of silver.

"We are pleased to have received this licence, which opens the way for expanded silver production at Keno Hill. However, the recent and continuing decrease in the price of silver has also given us reason to closely evaluate all of our operating plans, and the decision on when to commence production at Onek will depend upon our currently ongoing analysis.

“In the current unstable metal price environment, it may very well make sense to defer Onek production until conditions stabilise and improve. I expect our analysis and interim plans will be completed within the next couple of weeks,” Alexco president and CEO Clynt Nauman said in a statement.

Nauman also stressed that the Flame & Moth deposit, which has more than 23-million ounces of silver resources, was becoming an increasingly important part of management’s thinking.

“We are looking carefully at return on capital at all of our sites – Bellekeno, Onek, Lucky Queen and Flame & Moth – and it is important to remember that the price sensitivity of these different styles of deposits will ultimately drive any final commercial production decisions," he said.

The water-use licence amendment also applied to material delivered to the mill from the Lucky Queen mine, which was scheduled to go into production later in the year, depending on the submission of an updated waste-rock management plan to eliminate rehandling and to provide more efficient long-term waste-rock storage closer to the mine.

Edited by Creamer Media Reporter

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