Alexco Resource Corp. (
TSX: T.AXR) announced silver production of 576,155 ounces during the second quarter of 2013 from its Bellekeno mine, located in the Keno Hill Silver District in Canada's Yukon Territory.
Second quarter silver production increased 52% compared to the first quarter and for the first six months of 2013, silver production totaled 955,772 ounces.
According to the
Alexco Resource press release, improved second quarter performance was a result of a 27% increase in mill throughput to an average of 283 tonnes per day, as well as an 18% increase in grade to an average 751 grams per tonne, relative to the first quarter.
Despite increased production, the company said low metals prices are expected to have a negative impact on financial results for the quarter.
As a result, Alexco has developed a contingency plan to operate through the summer while beginning preparations to undergo a temporary and orderly suspension of operations at the Bellekeno mine and mill prior to the onset of winter.
This avoids selling silver at current or weaker market prices, and positions the mine and mill for a re-opening after the winter, assuming the silver market has improved from current levels and underlying fixed costs have been reduced.
Alexco plans to use the winter period to significantly restructure the underlying fixed costs at Keno Hill, as well as refine plans for a production ramp-up to 400 tonnes per day in the 2014 - 2015 time period.
Alexco is engaged in mining, exploring and development of mineral properties in Canada.
On Wednesday morning, Alexco was trading at $1.36 a share. The company had a market cap of $85.1 million, based on 62.6 million shares outstanding.