VANCOUVER, April 10, 2018 /PRNewswire/ - Alexco
Resource Corp. (NYSE American: AXU, TSX: AXR) ("Alexco"
or the "Company") is pleased to announce that on
April 3, 2018 its wholly owned US
subsidiary, Alexco Water and Environment Inc. ("AWE"), entered into
a Master Services Agreement ("MSA") with Colorado Legacy Land LLC
("CLL") to become the Operator of Responsible Charge for the
Schwartzwalder Mine and the former Cañon City Uranium Mill
reclamation and cleanup projects located approximately 45 miles
northwest and 115 miles south of Denver, respectively. The two projects
comprise a total of approximately 3,300 acres of freehold land
which are subject to a mine reclamation permit and radiation
materials licenses.
As part of the MSA, AWE, on a fee-for-service basis, will be
responsible for all work to complete the reclamation obligations
assumed by CLL associated with the regulatory closure,
environmental compliance, investigation and cleanup for the
Schwartzwalder and Cañon City properties. The scope of
services to be performed by AWE will be jointly developed by CLL
and AWE through annual work plans to meet regulatory and cleanup
requirements under the Schwartzwalder mining reclamation permit and
radiation materials licenses, and the cleanup plan that is being
developed under the Comprehensive Environmental Response,
Compensation, and Liability Act ("CERCLA") process for the former
Canon City Mill site. AWE will be responsible for the
implementation and execution of all the components within those
work plans.
Paul Newman, Managing Director of
CLL, commented "Alexco's experience in mine closure, water
treatment, radiation management and cleanup services, and
brownfields remediation provides CLL with a partner that can
achieve the best remediation outcomes for these sites, and support
the best possible reuses that will benefit our neighboring
communities. We are pleased to have this expertise to energize
these cleanup and reuse projects."
Clynt Nauman, Alexco CEO and
Chairman commented, "We are very pleased to be working with CLL to
actively cleanup these long standing and relatively high profile
contaminated areas. This long-term agreement is expected to
take more than ten years to complete and generate revenue in excess
of US$20 million for AWE while
underpinning the ongoing growth of our US environmental group. We
remain committed to growing our environmental business by providing
a range and quality of services to clients across North America, which is complementary to our
mining business and cleanup of legacy environmental issues at our
Keno Hill Silver District in Yukon,
Canada."
With ongoing growth in both its environmental and mine-related
business units, Alexco has strengthened its management structure
through the appointment of James
Harrington to the position of President of Alexco
Environmental Group ("AEG") where he will be responsible for
executive, strategic and technical leadership of AEG and its
various subsidiaries. In a related management change, Linda Broughton, currently Vice President,
Projects for AEG, will be appointed Vice President, Technical
Services for Alexco in support of mining operations at the Keno
Hill Silver District. Ms. Broughton will also be appointed to the
position of President of Alexco's subsidiary, Elsa Reclamation and
Development Company, where she will lead the implementation of the
reclamation and closure plan for the legacy environmental
liabilities in the Keno Hill Silver District.
About Alexco
Alexco owns 100% of the high-grade Keno Hill Silver District
("KHSD") in Canada's Yukon. Alexco published an updated Preliminary
Economic Assessment ("PEA") in March
2017 which anticipates the sequential development of four
high grade silver deposits over an eight year mine life to produce
more than a million tonnes with an average grade of 843 grams per
tonne ("g/t"), 3.3% lead and 4.2% zinc. Silver production is
anticipated to be approximately 3.5 million ounces per year.
Employing a unique business model, the Alexco Environmental
Group also provides mine-related environmental services,
remediation technologies and reclamation and mine closure services
to both government and industry clients.
Please visit the Alexco website at www.alexcoresource.com
Some statements ("forward-looking statements")
in this news release contain forward-looking information concerning
Alexco's anticipated results and developments in Alexco's
operations in future periods, planned exploration and development
of its properties, plans related to its business and other matters
that may occur in the future, made as of the date of this news
release. Forward-looking statements may include, but are not
limited to, statements with respect to the MSA and the economic
benefits thereof to AWE, the development of the scope of services
to be performed by AWE under the MSA, AWE's obligations and
responsibilities under the MSA and the expected timing for
completion of services under the MSA, proposed changes in
management of the Company and certain of its subsidiaries, the
future remediation and reclamation activities, future mineral
exploration, the estimation of mineral reserves and mineral
resources, the realization of mineral reserve and mineral resource
estimates, future mine construction and development activities,
future mine operation and production, the timing of activities and
reports, the amount of estimated revenues and expenses, the success
of exploration activities, permitting time lines, requirements for
additional capital and sources and uses of funds.
Forward-looking statements are subject to a variety of known and
unknown risks, uncertainties and other factors which could cause
actual events or results to differ from those expressed or implied
by the forward-looking statements. Such factors include,
among others, risks related to the failure by either party to the
MSA to satisfy its obligations pursuant to the agreement, risks
related to actual results and timing of exploration and development
activities; actual results and timing of mining activities; actual
results and timing of environmental services activities; actual
results and timing of remediation and reclamation activities;
conclusions of economic evaluations; changes in project parameters
as plans continue to be refined; future prices of silver, gold,
lead, zinc and other commodities; possible variations in mineable
resources, grade or recovery rates; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; First Nation rights and title;
continued capitalization and commercial viability; global economic
conditions; competition; and delays in obtaining governmental
approvals or financing or in the completion of development
activities. Forward-looking statements are based on certain
assumptions that management believes are reasonable at the time
they are made. In making the forward-looking statements
included in this news release, Alexco has applied several material
assumptions, including, but not limited to, the assumption that
Alexco will be able to raise additional capital as necessary, that
the proposed exploration and development will proceed as planned,
and that market fundamentals will result in sustained silver, gold,
lead and zinc demand and prices. There can be no assurance
that forward-looking statements will prove to be accurate and
actual results and future events could differ materially from those
anticipated in such statements. Alexco expressly disclaims any
intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise, except as otherwise required by applicable securities
legislation.
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SOURCE Alexco Resource Corp.