Even better the second time around

Alexco reopens the historic Bellkeno silver mine

1 of 3Historical mining activity at the Bellekeno Mine area. — Photo courtesy of Alexco Resource Corporation

2 of 3The new 400-tonnes-per-day mill located two kilometres from the Bellekeno mine. The mill was built in 2010 as part of the redevelopment of the Keno Silver District. — Photo courtesy of Alexco Resource Corporation

3 of 3Underground at the Bellekeno silver mine. — Photo courtesy of Alexco Resource Corporation

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The mining industry has changed significantly in the last few decades. While new technology has made a difference in production, environmental issues have played a key role in how mining companies do business.

Reclamation and remediation has become an integral part of the mining industry. In fact, as a Yukon government newsletter from the spring of 2010 stated, “In the Yukon, reclamation planning is done before a shovel even breaks ground.”

But when Alexco Resource took over the task of reclaiming the historic Keno Hill Silver District in 2006, it was a matter of starting from scratch. No reclamation had been done during the time the mine was previously in operation, mainly because there weren’t modern environmental laws and regulations in place while it was operational.

“Alexco was one of 11 companies that bid on this project, and one of the reasons we were successful is because of our environmental expertise,” said Brad Thrall, executive vice president and COO of Alexco Resource Corp. “We were the only company with the expertise (both in mining and environmental remediation) and this was attractive to the federal government.”

The district originally closed in 1989—not due to lack of resources, but rather a lack of operating money, poor silver prices and environmental concerns. In the seven decades it was in operation, it produced more than 217 million ounces (or 6,750 tonnes) of silver, making it the second largest historical producer of silver in Canada. But after sitting idle for 20 years, the federal and Yukon governments decided the best way to mitigate the environmental liability was to put the mining district back in the hands of private industry.

Alexco had only been in operation for a year when it took on the Keno project. But the company’s success, which has been ongoing, can be attributed to its unique business model in the mining and exploration business, said Thrall.

“We explore, develop, open and build mines, but on the other side we have a stand-alone environment services company. We offer solutions on how to bring a mine back into production, but we can also manage the environmental solutions.”

In addition to its business model, Alexco’s management team also had the necessary experience. The team, consisting of Thrall and Clynt Nauman, CEO and co-founder of Alexco, had proved its abilities in 1999 and again in 2002, when they operated and closed the Brewery Creek Mine, twice winning the Robert E. Leckie Award for outstanding reclamation practices.

Alexco has optioned the Brewery Creek property and the mine has since started redevelopment, thanks to the increase in gold prices—but also because it was managed properly through the closing stages.

“This mine has gone through an entire life cycle and now it’s starting the second cycle of redevelopment,” said Thrall.

Remediation and closing of a mine is generally a lengthy process. The Yukon government has an extensive mine reclamation and closure policy that must be followed. Key points include the progressive reclamation of the site during the life of the operation, the design of tailings and waste rock disposal areas, methods for protection of water resources, a temporary closure plan and a plan for ongoing and post-closure monitoring, to name just a few.

Despite the strict controls, Alexco was able to put one of the historic mine sites at Keno Hill back into production in only three years, an almost unheard-of turnaround time. With operations commencing on January 1, 2011, the Bellekeno mine is now Canada’s only primary-producing silver mine, and is expected to be one of the highest-grade silver-producing mines in the world.

Alexco continues to explore other high-grade silver prospects throughout the Keno Hill Silver District. Thrall said the company plans to identify 100 million ounces of silver in this area and produce more than seven million ounces of silver annually within the next decade.

The company employs 175 people and boasts revenues of $80 million on the mining side and $10 million on the environmental side.

“We’ve gone from two guys in a pickup truck to where we are now, and in a relatively short period of time,” said Thrall.

Keeping it clean

Alexco Resource Corporation currently owns six Canadian patents and holds additional US patents associated with water treatment.

“We try and brand ourselves as the go-to guys for this kind of information,” said Thrall, who is a co-founder of Alexco Resource Corporation.

The environmental side of Alexco provides numerous sectors with environmental consulting services, which include:

• Environmental impact and risk assessment
• Health, safety, environment and community plans
• Development assessment
• Strategic advice/issues management
• Environmental training
• Mine closure and decommissioning plans
• Geographic Information Systems (GIS) services
• Computer Assisted Drafting (CAD)
• Environmental and compliance audits
• Exploration land management
• Contaminated site investigations, site assessments and plans of restoration

For more information on Alexco Resource Corporation, visit the company website at alexcoresource.com