Yukon silver mine near production

Alexco Resource Corp. is poised to open a new silver mine in central Yukon later this year, now that it has all the licences and approvals it needs.

Yukon government regulators have granted Alexco a water license for its Bellekeno underground mine, located about 330 kilometres north of Whitehorse near Keno City, the Vancouver-based company announced Monday.

With the water licence and other government approvals in hand, Alexco officials say they plan to start shipping silver ore concentrate from the Bellekeno mine in the next six weeks.

"We have to commission the mill and fire it up and make sure everything works, and that itself is ready to start within a number of weeks," Rob McIntyre, the company's vice-president of corporate affairs, told CBC News on Monday.

McIntyre said about 150 people are currently working on construction at the mine and mill sites. That will change to 120 full-time jobs once the mine enters production, he said.

The company will spend $25 million on labour and supplies each year, he added.

Most of the jobs will go to a consortium of two organizations the Nacho Nyak Dun First Nation and Procon Mining and Tunnelling Ltd. that landed the mining and catering contracts.

Last regulatory hurdle

The water licence was the last regulatory hurdle the Bellekeno mine faced. The mine plans were approved by the Yukon Environmental and Socio-Economic Assessment Board last year, and it has also been granted a quartz mining licence from the Yukon government.

McIntyre said it took Alexco says the approvals send a good message about the Yukon's readiness to do business.

"It puts the stamp of approval on Yukon, if there ever was a concern about its ability to issue licences," he said.

"We're ready to continue through the district for a number of years into the future."

The Bellekeno mine's lifespan is currently pegged at 3 years, but McIntyre said Alexco is exploring for more underground and above-ground ore deposits that he believes will extend the life of the mine.