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Demand Side Management & Audit Review April 2012 Keno Hill Project Overview Water Treatment & Environmental Exploration Monitoring Reclamation & & District Remediation Development KENO HILL SILVER DISTRCIT


  1. Demand Side Management & Audit Review April 2012

  2. Keno Hill Project Overview Water Treatment & Environmental Exploration Monitoring Reclamation & & District Remediation Development KENO HILL SILVER DISTRCIT Environmental Consulting Keno Hill & District Mill Closure Planning Underground Mining

  3. KEY Reasons for Involvement 2011 Demand Side Management Energy Audit • Mutually beneficial partnership between YEC & Alexco • Identified areas which allow Alexco to:  Reduce peak usage  Reduce total energy usage  Identify possible efficiencies  Further reduce energy footprint

  4. Demand Side Energy Consultants Study Scope 1. 2. 3. 4. Observation of Comparison of Analysis of Final report & Keno Hill Project other projects to utilization rates & recommendations operational Keno Hill Project operational to Alexco & YEC procedures parameters 1 week at site Database Large equipment Operational comparison for such as: air recommendations & Off-site consulting efficiency gains compressors, capital projects work crushers, blower, ball mill …

  5. • • • crushing operations Peaks are associated with ore to peak load All infrastructure must be sized Operations Base Load = Daily Steady State Typical Energy Profile 1,000.00 1,200.00 1,400.00 1,600.00 200.00 400.00 600.00 800.00 0.00 3/18/2012 14:45 3/19/2012 3:45 3/19/2012 16:45 3/20/2012 5:45 3/20/2012 18:45 3/21/2012 7:45 3/21/2012 20:45 3/22/2012 9:45 3/22/2012 22:45 3/23/2012 11:45 3/24/2012 0:45 3/24/2012 13:45 3/25/2012 2:45 3/25/2012 15:45 3/26/2012 4:45 3/26/2012 17:45 3/27/2012 6:45 3/27/2012 19:45

  6. Recommendations of Demand Side Audit 6. Re-apply variable frequency drives to 1. Instillation of an ammeter in Mill Mine ventilation operators cab 7. Optimize plant process thru program 2. Convert plant lighting to T5 HO logic controller fluorescents & LED’s for outdoors 8. Install electrical sub-metering for 3. Re-commission mill air system Mine 4. Initiate compressed air leak 9. kWh per tonne as performance reduction program measure 5. Commission the air blower inlet 10.Install capacitors on the 600V Mill modulation

  7. Status of Recommendations  Investigation of alternate lighting options (LED’s) - in progress  Mill compressed air system has been re-commissioned  Ongoing air leak reduction program at Mill & Mine  Additional variable frequency drives have been installed  Program logic control on filter presses implemented  Evaluation of site power distribution & metering options - in progress  Cost benefit analysis & design of power factor correction unit for the Mill – in progress

  8. Power Factor (PF) Power Factor is a measure of how • effectively the power is being used and is a ratio of “active power” used to the “apparent power” required which is a combination of both active power & reactive power 0.85 for normal operations • 0.75 for peak loading conditions • For every unit of power • PF = Active Power / Apparent Power • required to run upwards of 15-20% more power needs to be provided 0.95 – 0.98 PF with correction •

  9. Future Considerations  Increased use of variable frequency drives on motors  Power factor correction studies  Energy measuring devices  Alternative lighting sources  Proper equipment sizing & selection  Ongoing evaluation of operational practices

  10. Alexco Contact Info Peter Johnson – Construction Manager Whitehorse Office Vancouver Head Office Keno Hill Silver District #3 Calcite Business Centre 1150 – 200 Granville St. Elsa, Yukon Y0B 1G0 151 Industrial Road Vancouver, BC V6C 1S4 T: 867-996-2330 Whitehorse, Yukon Y1A 2V3 T: 604-633-4888 F: 867-995-2600 T: 867-633-4881 F: 604-633-4887 F: 867-633-4882

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