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Alexco receives final water use licence, development ramping up

Alexco Resource has received the final amended and renewed water use licence (WUL) for the Keno Hill silver district in Yukon, Canada, from the Yukon Water Board.
Alexco receives final water use licence, development ramping up Alexco receives final water use licence, development ramping up Alexco receives final water use licence, development ramping up Alexco receives final water use licence, development ramping up Alexco receives final water use licence, development ramping up

Keno Hill in Yukon, Canada

The WUL authorises Alexco to source and use water as well as deposit designated waste streams into approved facilities in and around planned production centres at the Bellekeno, Flame & Moth, and Bermingham mines, and the mill facility. The licence is for 17 years and the conditions are the same as the draft WUL announced in June.

"With the final WUL now issued, construction and development operations advancing and other commercial arrangements advancing on schedule in a strengthening silver pricing environment, we are well on our way to become Canada's only primary silver producer," said Alexco chair and CEO Clynt Nauman.

Underground activities are focused on the rehabilitation and services at the Bellekeno mine, which will be the first mine to deliver ore to the mill towards year end. Underground development at Flame & Moth will begin in August and at Bermingham in September once surface facilities including the water treatment plant are commissioned.

Initial delivery of the new underground mining fleet including loaders, trucks, jumbos and bolters has begun and all major underground equipment units are on schedule for delivery consistent with the underground development schedule. The secondary ball mill has been set and the concentrate regrind mills and tailings filter press have been delivered to site. The development and production plan continues on pace for mill commissioning and silver concentrate production in the fourth quarter.

A 4,200m surface exploration drilling programme has commenced targeting down plunge extensions about 200m below the high-grade Bermingham deposit.

Bermingham  hosts an indicated resource of 32.9 million ounces of silver at an average grade of 930 grams per tonne.

Shares in Alexco Resource are trading at C$4.03, valuing the company at $515 million.