Whitehorse Daily Star

Way cleared for two more mining operations

The Yukon government has approved two more mining operations for the Keno Hill Silver District.

By Chuck Tobin on January 28, 2013

The Yukon government has approved two more mining operations for the Keno Hill Silver District.

Energy, Mines and Resources Minister Brad Cathers announced this morning he has approved the required amendment to Alexco's Quartz Mining Licence to allow further development of the Onek and Lucky Queen properties.

The Mayo office of the Yukon Environmental and Socio-economic Assessment Board recommended approval of the project last August.

The government followed up with its approval last October, and completion of the required amendment was announced this morning.

The amendment comes with a condition that Alexco Keno Hill Mining Corporation increase to $4.2 million its financial security to cover closure and reclamation costs, up another $600,000 from the $3.6 million posted currently.

Alexco also requires a change to its water licence. A public hearing into the application is scheduled for three days in Mayo beginning Feb. 26.

The Onek deposit is approximately 500 metres north of Keno City, while the Lucky Queen deposit is about four kilometres north of the central Yukon community.

Both properties were mined decades ago.

"We congratulate Alexco on its continued success,” Premier Darrell Pasloski said in this morning's press release.

"The expansion of Alexco's Keno Hill Silver District operation will bring significant economic benefits to Yukon, including new job opportunities for Yukoners.”

Pasloski is attending this week's Mineral Exploration Roundup in Vancouver.

He's being accompanied by Cathers, Highway and Public Works Minister Wade Istchenko and Economic Development and Environment Minister Currie Dixon.

Alexco just completed its second year of production at its Bellekeno mine. In 2011, the company paid $351,535 in royalties.

Alexco reported earlier this month it had produced 2.15 million ounces of silver last year, up by 130,000 ounces over 2011.

It also boosted production at its mill in the last three months of 2012 to 291 tonnes per day, the highest rate of production so far and an average of 46 tonnes a day more than in the fourth quarter of 2011.

The company is not proposing to increase the daily output at the mill with the Onek and Lucky Queen projects.

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