Friday, August 1, 2025

Latest

Alexco Suspends Milling Operations, Needs Additional Funding To Support Operations

Alexco Resource (TSX: AXU) appears to be having some difficulty in preparing its Keno Hill property in the Yukon for full scale production. The firm this morning revealed it is not only being forced to halt certain operations, but also that it needs additional funding if it wishes to obtain full scale production.

“As previously indicated in May, our operations ramp-up plan is running well behind schedule and at this juncture we have enough information to determine that the rate of improvement in underground performance is not sufficient to reach a sustainable 400 tpd and cash self sufficiency in 2022,” commented CEO Clynton Nauman.

While ramping of mining operations at the property continue to progress, Alexco has indicated that the progress to date is not enough to sustain operations. 5,750 tonnes of ore were milled during the month of May, with a total of 16 days of milling ops occurring. Of those, just nine days saw the company operate at full capacity of 400 tonnes per day.

With development behind schedule, the company has elected to suspend milling operations for at least five to six months, while it focuses on underground development. The current state of development does not provide for sufficient production to sustain capacities of 400 tpd, thus forcing the firm to focus on this aspect of its operations. 120,000 tonnes of ore is expected to be in inventory at the end of the year, allowing milling and ore extraction to resume operations in January 2023. The company as a result expects to be self sufficient on a cash basis in Q1 2023.

In terms of cash, the firm reportedly has just $14.0 million in the bank, and a negative working capital position of $4.5 million. Capital required to see the company through to self sufficiency in Q1 2023 is currently unknown by the company, with a review presently underway. Additional funding however is known to be required before the return to milling operations.

Alexco Resources last traded at $1.04 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Why Gold’s Bull Run May Just Be Getting Started! | Peter Grandich

Tariffs Spark New Race for Critical Metals | Rob McEwen

Antimony Resources: The Bald Hill Project

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

18M oz Silver @ $10/oz: GoGold’s Growth Plan with Steven Low

At the Rule Symposium of Natural Resource Investing in Boca Raton, Florida, Steve conducted an...

Friday, July 19, 2024, 12:44:00 PM

GoGold Drills 5.4 Metres Of 922.5 G/T Silver Equivalent At Los Ricos South, Accelerates Warrants

GoGold Resources (TSX: GGD) this morning announced the results of six drill holes conducted at...

Wednesday, July 22, 2020, 09:14:39 AM

Max Resource Releases Initial Results From AGH Study On Cesar Project

This morning, Max Resource Corp (TSXV: MXR) reported initial results from the currently ongoing study...

Tuesday, May 26, 2020, 08:33:11 AM

Max Resource Identifies Silver Bearing Copper Sulfides and Native Silver At Cesar

Max Resource Corp (TSXV: MXR) this morning provided an update to the market in relation...

Tuesday, August 25, 2020, 09:15:39 AM

Aya Gold & Silver Produces 338,624 Silver Ounces In Q3 2021, Increases 2021 Guidance To 1.55 Million Ounces

Aya Gold & Silver Inc. (TSX: AYA) shared today its quarterly production results for Q3...

Thursday, October 14, 2021, 03:47:00 PM