Contract miner Dynatec (DY-T) has decided not to participate in the rehabilitation, development and operation of dormant silver-lead-zinc mines near Elsa, in the central Yukon.
The company terminated discussions with mine owner United Keno Hill Mines (UKH-T) for a joint venture to return the former mines to production. Operations were suspended in 1989, owing to low silver prices.
United Keno Hill still intends to revive the mines and, toward that end, has accepted a fixed-price construction proposal from contract miner Procon Mining & Tunnelling.
Procon also will provide machinery, equipment and other financial assistance to the project, pending definitive contracts. This assistance is expected to reduce capital costs by about 40%.
United Keno Hill intends to produce about 5 million oz. silver annually at a mining and processing rate of 500 tons per day. Reserves and resources are deemed sufficient for a mine life of five years.
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