Alexco resumes silver mining near Keno City, Yukon

Alexco Resource Corp. says production has resumed at its Keno Hill silver mining properties in Yukon, seven years after the company shut down its Bellekeno mine.

In a news release on Tuesday, the company says milling operations at the site are now underway, and producing lead/silver and zinc concentrates.

In a statement, Alexco CEO Clynt Nauman calls it a "significant milestone on our journey toward establishing Alexco as Canada's only primary silver producer."

There are now about 150 employees working at the mine site, according to the company, with the majority of them from Yukon and B.C.

Production planned at three other operations

The company is now processing ore from the Bellekeno mine, and the plan is to ramp up production at two other operations — Bermingham and Flame and Moth.

"The majority of surface infrastructure and mill projects are nearing completion, including the recent commissioning of the Bermingham water treatment plant," the news release says.

Alexco has said that the Bermingham deposit is comparable to the types and grades of silver first found at Keno Hill almost a century ago.

Alexco's Bellekeno silver mine was in operation for two years before the company shut it down in 2013, because of low commodity prices. According to the company, Bellekeno produced about two million ounces of silver and 20 million pounds of lead and zinc concentrate each year while in operation.