Alexco Resource president Clynton Nauman says the company could make a decision as early as December whether to go ahead with development of a new silver deposit.

He said last week that preparing the Flame and Moth property for production is not a huge undertaking and would involve a crew of 15 to 25 working for several months beginning early next year.

When the mining industry is in a lull as it is now and commodity markets are depressed, it can be cost effective to complete preparation work because there plenty of talent and expertise available, he said.

Nauman said getting the deposit ready also puts Alexco in a position to bring the Flame and Moth deposit into production relatively quickly when conditions are right.

“It’s a good time to be doing development in the mining business,” said the company president and CEO. “So if there is a run up in the commodity market it is better to be ready to flick the switch.”

The Yukon Environmental and Socio-economic Assessment Board recommended approval of the Flame and Moth project last week.

The company is now waiting for a decision by the Yukon government on the assessment board’s recommendation, so that it will have a better idea of what conditions the government will require for the project, Nauman said.

Last fall, Alexco suspended production at its Bellekeno mine and its nearby mill in Keno City amid a falling silver price.

It has since re-adjusted its work-plan to reduce the cost of production, and has re-arranged its financial position so that it is better suited to absorb market fluctuations, the company announced this past summer.

Alexco plans to blend ore from the Flame and Moth deposit with ore from the Bellekeno mine while increasing daily processing at the mill from an average of 270 tonnes per day to 400 tonnes per day.

The recommendation for approval by the assessment board carries with it numerous terms and conditions that Alexco must fulfill to minimize the environmental and social impacts.

Many of the conditions involve the impact on the local community of some 25 to 30 permanent residents. Not only is the company required to address the standard concerns surrounding noise, dust and ground water quality, it’s also being told to retain a neutral third-party mediator to help develop a Keno City Socio-economic Mitigation Plan with the residents.

The plan is to include identifying and implementing methods to offset impacts to the local economy resulting from the mining activity, such as any decrease in property values or lost tourism revenue.