Alexco Resource reported a sequential rise in silver production at its Bellekeno mine, as mill throughput increased, but the miner cut its full-year production outlook as a string of power outages affected the quantity of ore it could process.

The Vancouver, British Columbia-based company now expects the mine in Canada's Yukon Territory to produce 2.2-2.5 million ounces of silver in 2011, down from its earlier forecast of 2.8 million ounces.

"Nine separate power outages resulted in a 15 percent reduction of mill throughput in June," said Chief Executive Clynt Nauman.

"But we are assessing alternatives for providing 100 percent independent electrical power generating capacity for the Bellekeno mine and mill during power outages."

Silver Production increased to 464,324 ounces from 447,524 ounces in the previous quarter.

Lead production rose 8 percent to 4 million pounds and zinc output was up 39 percent to 1.8 million pounds, sequentially.

Average mill throughput during the quarter was 208 tonnes per day (tpd) compared with 201 tpd in the first quarter.

Alexco Resources shares were trading flat at C$7.24 on Wednesday morning on the Toronto Stock Exchange. (Reporting by Amruta Sabnis in Bangalore; Editing by Joyjeet Das)