Saturday, July 12, 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

Mergers Set the Stage for Uranium’s Growth Cycle | Forum-Baselode Merger

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Recommended

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

Related News

Max Resource Assays 3.0% Copper, 29 G/T Silver Over 250 Metres Via Grab Sample

Max Resource Corp (TSXV: MXR) released further results from its Cesar Copper-Silver property, located in...

Wednesday, October 28, 2020, 07:54:45 AM

Vizsla Silver Hits 901 g/t Silver, 3.25 g/t Gold Over 3.84 Metres

Vizsla Silver (TSXV: VZLA) this morning reported the latest drill results from its flagship Panuco...

Wednesday, November 3, 2021, 07:57:45 AM

The Drill Core That Got Newmont & Eric Sprott Hooked | Metallic Minerals with Scott Petsel

In this interview at the Commodities Global Expo 2024, Scott Petsel, President of Metallic Minerals...

Friday, October 25, 2024, 01:05:00 PM

Discovery Silver Reports NPV Of US$1.2 Billion For Cordero

Discovery Silver (TSXV: DSV) this morning reported a preliminary economic assessment for its Cordero Silver...

Tuesday, November 30, 2021, 08:44:58 AM

Mining The Metals Correction: Impact Silver

As the stock market continues to pervert the nation’s youth, it often feels like it’s...

Thursday, August 27, 2020, 12:01:00 PM