RE: RE: production soonThe last big hurdle forBellekeno is the water license. Anybody any idea when we can expect this permit? Or any drill results?
Patience is a virtue
Interview with Beacon Rock Research Founder Mike Niehuser (22 July 2010)
MN: Alexco Resource Corp. (TSX:AXR; NYSE.A:AXU) is not inproduction yet, but considering the modest size of operations, it hasvery good potential to be at a full run rate by the end of 2010. Alexcois on schedule for constructing its 408 ton-per-day flotation mill atits Bellekeno mine at its wholly owned Keno Hill Silver District. Alexcohas applied for its water license, its critical last step beforecommencing production. Upon receiving this important permit, the millwill begin production and thus eliminate much of the remaining risk.
In addition to the relatively lower risk of a small operation,Bellekeno will be among the most profitable high-grade silver mines inthe world. Historically, the Keno Hill Silver District produced over 200million ounces of silver at about 60 ounces per ton. The ore containslead and zinc and should be desirable for smelters. Alexco's explorationteam has consolidated and studied historic data on the district and hashad good success with blind targets. The company also has embarked onan aggressive 30,000-meter-drill program in 2010 that may revealadditional blue-sky upside in the near term.
It is interestingthat Silver Wheaton Corp. (NYSE:SLW; TSX:SLW) contributed C$50 millionfor the development of the Bellekeno mine in exchange for purchasingonly 25% of the district's silver stream at $3.90 per ounce. As theidentified resource does not provide a significant return on investmentfor the investment, it must be apparent to them that the Keno HillSilver District has enough exploration upside to complete thetransaction. The current drill program is devised to focus on 5,000meters of underground drilling at Bellekeno to expand the deposit andmine life, as well 25,000 meters to locate the next mine at Keno Hill.As Alexco is also being paid for environmental cleanup of earlier miningoperations, they have other upside over the long term.
https://www.mineweb.co.za/mineweb/view/mineweb/en/page33?oid=108398&sn=Detail&pid=102055