Alexco Resource has tabled a prefeasibility study (PFS) for its wholly owned Keno Hills silver project, in Yukon, that assigns the project a $101.3-million after tax net present value at a 5% discount rate, and a 74% after tax internal rate of return (IRR).
It assumes a life of mine US$17.90 per oz. silver price.
Alexco expects the underground operation would process 154,000 tonnes per year over an eight-year life at 804 grams silver, 2.98% lead, 4.13% zinc and 0.34-gram gold. The project would produce 27.2 million oz. silver, 67.2 million lb. zinc and 65.4 million lb. lead.
Keno Hills would cost an initial $23.2 million: $17.9 million for surface and underground development, including mill commissioning, and $5.3 million for net working capital during the two-month mill ramp up.
The project would require $76.5 million in sustaining capital, with $321 per tonne direct operating costs. It would operate at US$11.98 per oz. silver all-in sustaining costs.
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