Alexco Resource Corp has received an amendment to its Water Use Licence from the Yukon Water Board for the development and operation (and eventual closure) of the Flame & Moth mine. The Flame & Moth underground mine, located adjacent to the existing Keno Hill District mill, comprises a potentially mineable 683,000 t of 666 g/t silver ore and is anticipated to be the primary production source for mine operations in the Keno Hill Silver District.
Clynt Nauman, Alexco CEO and Chairman commented, “The receipt of the Flame & Moth Water Use Licence amendment is the final permit and regulatory authorization required for production from the Flame & Moth mine. Receipt of this licence amendment is a milestone in our journey toward mine operations and has involved the cooperation and support of our many stakeholders and partners, including the First Nation of Nacho Nyak Dun.”
In addition to Flame & Moth, the Bellekeno, Lucky Queen and Onek mines are also fully permitted for operations in the Keno Hill Silver District. In November 2017, the company submitted a further Project Proposal to the Yukon Environmental Socioeconomic Assessment Board for environmental assessment of the development, operations and eventual closure for the Bermingham mine. Bermingham is anticipated to contribute approximately 220,000 t of 1,276 g/t silver ore toward the approximately 1 Mt and more than 27 Moz silver mine production stream outlined over eight years in the PEA mine plan. Approximately 5,000 m of underground exploration and in-fill drilling of the Bermingham deposit will commence later in Q1 2018 upon completion of the currently active 580 m Bermingham exploration decline. Results of the drilling along with other work will contribute to a pre-feasibility study anticipated to be completed in Q3 2018.
In other business, Alexco announces that it has restructured its US environmental division. In this restructuring, Alexco’s wholly-owned subsidiary, Alexco Environmental Group Inc (AEG Canada) has entered into a share purchase agreement with Arete Property Holdings for the purchase by Arete of all of the issued shares of Alexco Environmental Group (US) Inc and its wholly-owned subsidiary, Alexco Financial Guaranty Corp. (collectively with AEG US, the AEG US Group) for nominal consideration. Arete is wholly-owned by James Harrington, Senior Vice President and Chief Technical Officer of AEG Canada.
As a result of this transaction, a new Colorado affiliate of AEG Canada, Alexco Water and Environment will seamlessly continue current and future environmental work in the USA. AEG US Group, together with initial funding provided by AEG Canada required for ongoing administrative and corporate responsibilities, will become subsidiaries of, and will be directly managed by Arete to pursue certain property negotiation rights and further capital opportunities.
Nauman commented, “The restructuring of Alexco’s US environmental division is merely an initial step in facilitating AEG’s ability to pursue significant opportunities for new brownfields-related environmental work and revenue while also prudently managing the parent company balance sheet.”