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Alexco sees slight water permit delay

Alexco Resource says it is in the final stage of renewing its water use licence (WUL) for the Bermingham polymetallic deposit in Yukon, Canada, but that it is now unlikely to receive it until the first quarter of 2020.
Alexco sees slight water permit delay Alexco sees slight water permit delay Alexco sees slight water permit delay Alexco sees slight water permit delay Alexco sees slight water permit delay

Keno Hill in Yukon, Canada

Staff Reporter

Reporting its third quarter results to September 30, the company said a technical pre-hearing conference had been scheduled for early December following which the final issuance of the WUL renewal would be subject to consideration by the Yukon Water Board.

Alexco has permits and authorizations for development and future ore production from the Bellekeno, Flame & Moth, Lucky Queen and Onek deposits, which are part of its Keno Hill property. Amendment of its Quartz Mining Licence is expected to be completed before the end of the year, which will allow the company to resume and complete the remaining underground development at Bermingham and begin ore production.

"We are actively working to expedite the final stages of the Water Use Licencing process and remain confident that appropriate Quartz Mining Licence authorizations will be in place before year-end, enabling us to continue with underground development of the Flame & Moth and Bermingham deposits once the final production decision is made," said chairman and CEO Clynt Nauman.

Meanwhile, Alexco completed planned surface capital construction activities at Bermingham including installation of the underground production-related portal, construction of a lined treatment pond, initial construction of a coarse ore storage pad, and upgrading of existing haul roads.

Bermingham hosts 33.4 million ounces of contained silver in indicated resources and 5.5Moz in inferred resources.

The company had cash and equivalents at the end of the third quarter of C$10.6 million.

Shares in Alexco Resource are trading at C$2.5¿42, valuing the company at $287 million.