Silver Pricejust a reminder ...
the silver price was $20.83 when the suspension of operations was announced last July.
today, the price reached $20.86 before pulling back but the outlook looks bullish.
the PEA called for recommissioning to begin this summer ...
along with development of the Flame and Moth deposits ...
to all go into production early next year.
Looking forward to more announcements soon!
Alexco's President and Chief Executive Officer, Clynt Nauman, said, "Earlier in 2013, in the face of declining silver prices and reduced operating margins, we elected to suspend winter operations at our Bellekeno mine and mill facilities at Keno Hill. We did so with the knowledge that we had a rapidly growing silver resource at our recently defined Flame & Moth deposit, and that a revised operations strategy was required to integrate production from known and previously developed deposits (i.e. Bellekeno, Lucky Queen) with the new and larger but as yet undeveloped Flame & Moth deposit. In addition, simple economics drive us to fully utilize our mill capacity when re-initiating silver production. To do that, the PEA outlines a strategy to initiate development of the Flame & Moth mine in 2014 as a first step to achieving commercial production from this deposit in 2015. Meanwhile, we would begin recommissioning the Bellekeno mine later in 2014 and have it ready to simultaneously go into production along with Flame & Moth near the beginning of 2015. Bellekeno production would eventually be replaced by higher grade, lower volume silver production from the Lucky Queen mine in 2017."
Nauman continued, "By following this plan, we would also retain short term optionality to accelerate Bellekeno production or development at Lucky Queen should conditions warrant in 2014. Concurrently in 2014, we intend to mobilize an expanded exploration program to evaluate previously identified extensions to the Flame & Moth deposit. With 23 million ounces of silver already indicated in resource, the Flame & Moth deposit is the third largest silver deposit discovered at Keno Hill in the last 50 years, and remains open. In my view, when ultimately delineated this deposit will become the cornerstone asset of Alexco's operations in the District, with the potential to anchor future production into the 2020s."