A licence issued by the Yukon Water Board will enable United Keno Hill Mines (UKH-T) to move forward with plans to resume production at its namesake silver-lead-zinc mine there.
The permit has been forwarded to the federal Ministry of Indian and Northern Affairs for approval. That approval will allow the company to raise the production capital necessary to complete surface rehabilitation and mine development.
Endeavour Capital has been retained to secure those funds, which would allow production to resume after a preproduction period of four to six months.
United Keno has been exploring the property for the past 2.5 years in an attempt to increase overall resources. As a result of that work, the mineral inventory there has trebled, and total resources currently stand at 944,000 tons grading 30 oz. silver per ton, 4.8% lead and 3.9% zinc. That inventory is now the largest in the company’s history.
Within that resource is a minable reserve of 520,000 tons grading 33 oz.
silver, 6.6% lead and 5% zinc. The reserve is believed sufficient for a 3-year mine life, though that figure is expected to increase to five years owing to adjacent resources.
In addition, the company expects its historic mining costs to drop substantially following the introduction of modern, trackless mining methods and other measures.
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