Alexco Resource Corp. and the Na-Cho Nyak Dun First Nation in Mayo, Yukon, have worked out a deal that will see both sides resuming talks on the mining company's plans.

Alexco vice-president Rob McIntyre told CBC News that the agreement will make the First Nation more of a partner in its mining plans, as well as bring talks on its project in the Elsa area back on track.

"We did pull our chairs up to the table and roll our sleeves up and worked out a great agreement here that will provide a clear path forward and some project certainty for us," McIntyre said Tuesday.

"So that's what we have been looking for and that is what the Na-Cho Nyak Dun has been looking for as well."

On Aug. 17, the Na-Cho Nyak Dun threatened to boycott government talks with Alexco on the reclamation of the United Keno Hill silver mine site, located 330 kilometres north of Whitehorse. The site is on federal land that is part of the First Nation's traditional territory.

At the time, Chief Simon Mervin said the Yukon and federal governments had excluded the Na-Cho Nyak from meaningful talks on reclamation efforts, while eagerly co-operating with Alexco.

McIntyre could not say how much the deal with the First Nation will cost, but he confirmed that Alexco will pay the First Nation's expenses for negotiating further agreements with the company. That will give both sides some security, he said.

"They want to see some certainty around the process, how they are going to be involved," he said. "And we want to have some certainty in the process about how they are going to be involved and that's what we got out of this agreement."

Mervin was not available to talk about the deal on Tuesday.

Deal helps revive stock prices

Despite the company's assurances last month that the stalled talks would not derail or substantially delay the project, market traders reacted to the First Nation's move, sending the company's stocks plummeting from around $5.50 a share to about $3.50 after the boycott threat.

McIntrye said the latest deal is helping Alexco get back on its feet.

"We were down on one knee and clutching our chests there for a while, but I think we're back up and starting to stride forward again," he said. Alexco shares closed at $5.00 on the Toronto Stock Exchange on Wednesday.