Mine Looking For Quick Startup
By Chuck Tobin, Whitehorse Star reporter
United Keno Hill Mines Ltd. expects it will move quickly to be back into production this fall, following last Thursday's final step to merge with NDU Resources Ltd.
Company board member Doug Goss said Monday he expects announcements regarding financing will be forthcoming within a couple of weeks.
United Keno, he said, is in a unique position because it has a production licence, the price of silver is strong. and good grade ore is readily accessible.
"So we are very excited and pumped about the prospect for the company, and, for that reason, we are moving fairly aggressively to get some financing and have the mine open as soon as possible."
The price of silver today - $8.84 Cdn. per ounce - is far enough above what the company needs to make money that officials are comfortable that a market fluctuation won't jeopardize restarting the historically-significant silver producer, Goss explained.
If United Keno wants to meet its schedule of having the Silver King and Bella Keno Elsa mines operating this fall, preparation work will have to begin soon, he said.
Goss declined to forecast what how many jobs would be available in pre-production and production stages. It would be more appropriate, he said, to have the new mine management unveil its operational plans.
United Keno and NDU Resources have been working on an merger since last July. The new company will retain United Keno Hill Mines Ltd. as its name, said Goss, formerly a member of NDU's board of directors.
The marriage received approval last Wednesday from at least two-thirds of the 1,200 NDU shareholders. Final court approval was received Thursday.
For each NDU share, NDU shareholders received 1.35 United Keno Hill shares.
Along with its Marg deposit - reported by the company to be a viable multi-mineral deposit northeast of Elsa - NDU support United Keno with about $2 million through merger negotiations to keep creditors from acting, Goss pointed out.
Among the creditors demanding money was the Yukon Energy Corp.
"We are very excited about where we have taken this thing now."
Goss estimates it will require an additional $20 million in financing to make improvements at the mine, as well as put the necessary working capital in place until its revenue starts coming in.
About $10 million of that, he said, is needed for upgrading at the minesite.
The merger was buoyed by the Marg deposit and the possibility of using Elsa for the mill site.
Goss said a road has been built into Marg but for the next while, exploration at Marg will stop while company officials fine-tune the feasibility of moving the ore to Elsa for milling.
The Marg deposit contains lead, zinc and silver. |
