YUKON – Due to the relatively low price of zinc and silver, Alexco Resource Corp. of Vancouver has announced several belt-tightening measures including layoffs, capital projects roll-back, vendor discussions, deferral of new mine commissioning, and executive salary reductions.
The number of employees at the Keno Hill silver operation will be reduced 25%, effective May 31. About half of the 30 positions to be cut are currently vacant staff positions. Staff reductions totaling 10% will also be effected in the Whitehorse and Vancouver offices. Company executives are taking a 20% cut in their take home pay.
Alexco has decided not to proceed with commissioning on the Onek silver-lead mine at Keno Hill, despite the fact that the project is essentially complete. The company will proceed with the start-up when zinc and silver prices return to the levels of 12 months ago.
The capital project under scrutiny is the Lucky Queen silver-lead mine. It has yet to receive regulatory approval for its amended waste rock management plan. Once that is received, Alexco will examine the idea of going forward depending on prevailing metals prices.
The company intends to continue with its exploration program as originally planned and to work on the preliminary economic assessment that includes the Flame and Moth property.
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