Alexco nears decision on Keno Hill restart

Alexco Resource Corp. Aug. 10 reported it has budgeted C$11.9 million for exploration and development expenditures ahead of a decision on resuming production at its Keno Hill silver mine in the Yukon.

"Alexco is fully engaged on site operations and a plan to move steadily forward in preparation for a final production decision at Keno Hill," said Alexco Chairman and CEO Clynt Nauman.

In March, the company published a preliminary economic assessment that outlines an operation at the re-opened Keno Hill Mine that would produce 25.1 million ounces of silver, 77.3 million pounds of zinc, 67 million lb of lead and 4,870 oz of gold over eight years.

This PEA is centered on the Flame & Moth deposit at Keno Hill but includes ore from the Bermingham, Bellekeno, Lucky Queen and Onek deposit.

These deposits would provide the mill with 1.02 million metric tons of material averaging 843 g/t over the mine-life considered in the assessment.

Alexco has budgeted C$3.2 million for a 12,000-meter surface drill program to further explore potentially mineralized structural targets in the immediate vicinity of the Bermingham, a high-grade discovery with 868,000 metric tons of indicated resource averaging 628 g/t (17.3 million oz) silver.

The surface drilling is more than half way complete and results are expected in the fourth quarter.

Alexco has also applied for permits to carry out an underground exploration program at Bermingham this year.

If permitted, the company plans to drive a 600-meter decline to provide access for roughly 5,000 meters of underground infill and confirmation drilling of the high-grade indicated resource.

The objective of the program is to upgrade the existing inferred resources to indicated and upgrade existing indicated resources to measured.

This roughly $8.7 million program includes purchasing and rebuilding underground equipment.

-SHANE LASLEY