VANCOUVER, June 27, 2019 /PRNewswire/ - Alexco Resource
Corp. (NYSE American: AXU) (TSX: AXR) ("Alexco" or the
"Company") is pleased to announce the commencement of its
2019 summer surface exploration drilling program in the Keno Hill
Silver District, focusing exploration in the vicinity of its
Bermingham deposit where an indicated resource (including reserves)
totalling 32.9 million ("M") ounces ("oz") of silver ("Ag") at an
average grade of 930 grams per tonne ("g/t") Ag has been defined
(see news release dated May 8, 2019,
entitled "Alexco Files Technical Report on the Pre-Feasibility
Study for Expanded Silver Production at Keno Hill Silver
District"). The deposit remains open to the northeast and at depth
into stratigraphic levels inferred to have controlled the
deposition of the adjacent Hector-Calumet deposit that historically
produced 96 M oz Ag at a recovered
grade of 1,213 g/t Ag.
Along with the surface drilling program, Alexco has also
commenced surface capital construction activities consistent with
work outlined in the recently published pre-feasibility study
("PFS"). Initial capital work is focused on installation of the
underground production-related portal infrastructure at the
Bermingham decline, as well as installation of surface facilities,
services and infrastructure to support future production.
Highlights of the 2019 Surface Exploration Program
- Alexco has initiated a minimum 7,500 meters, $2.25 M direct surface exploration diamond
drilling program.
- The program will comprise approximately 20 drill holes,
commencing with two drills on the Bermingham deposit, where at
least ten holes will target local extensions of the shallower
Northeast Zone, as well as systematically test the continuity and
tenor of the high grade Bermingham mineralization at depth.
- At least six holes will be targeted to further trace
mineralization near the Bermingham deposit and will include
preliminary work to better understand the newly discovered
continuation of the trend of Hector-Calumet - Bermingham
mineralization southwest of the Brefalt fault.
- The surface drilling program is scheduled to be completed in
September 2019, but can be extended
if warranted.
In addition to the priority drill exploration to be conducted
around Bermingham, the Company is also focused on other exploration
designed to follow up on testing of blind mineralized structures,
with signatures similar to that of Bermingham, that extend under
shallow cover as identified by the detailed aerial geophysical
survey conducted in late 2018. This represents a high priority
exploration target area on the northern slopes of Galena Hill,
where a combined total of 137 M oz Ag
has been historically produced from the Hector–Calumet, Elsa-Dixie,
No Cash, Bermingham and Ruby mines1, as well as
containing the newly discovered 32.9
M oz indicated Ag resource at Bermingham.
Clynt Nauman, Alexco CEO and
Chairman commented, "After filing the positive PFS for Keno Hill last month, we have turned our
attention to our 2019 exploration campaign while we wait for
authorization of the final amendment of our Water Use Licence for
ore production from the Bermingham deposit. As promised, we are
continuing our measured and disciplined approach toward a final
production decision pending completion of the permitting
process."
1.
Cathro, R.J. 2006. Great Mining Camps of Canada 1. The History and
Geology of the Keno Hill Silver Camp, Yukon Territory. Geoscience
Canada, Vol. 33.
|
Construction Update
Site infrastructure construction projects are currently underway
with a primary focus on projects that need to be completed for ore
production from the Bermingham deposit. Installation of a
multiplate portal cover at the entrance to the Bermingham decline
is currently in progress and will be followed by construction of a
coarse ore storage pad and facility and a lined water treatment
pond in anticipation of the future water treatment plant at
Bermingham. Civil excavation of the Bermingham maintenance shop
base and completion of the haul road from the Bermingham portal to
the Keno District mill are also in the 2019 project queue along
with establishing additional camp bunkhouse facilities. These
projects are all included in the recently published PFS on the Keno
Hill Silver project and completion of these infrastructure
improvements in 2019 will further de-risk the project in
anticipation of a final underground development and production
decision, which is now totally keyed to completion of the
permitting process.
Permitting Update
As previously noted, the Company has submitted a water licence
renewal application to the Yukon Water Board to renew the currently
licenced Flame and Moth, Bellekeno, Lucky Queen and Onek projects as well as including the Bermingham
deposit for ore production and discharge of treated water. Once the
licence renewal process is complete, the Keno District Mine
operations will be fully licenced until 2037. The water licence
renewal application is currently in the technical adequacy stage
and the Company continues to work closely with the Yukon Water
Board technical staff to advance the application into the public
comment stage. Given the current status of the Company's licence
amendment application and in consideration of other (third party)
major licensing amendments already in progress at the Yukon Water
Board, the Company estimates that completion of the final
Keno Hill licence amendment will be
delayed into Q4 2019, which although delayed, is within the
Company's current development and production timelines for a
restart of the Keno Hill Silver project.
Qualified Person
The disclosure in this news release of scientific and technical
nature regarding exploration projects on Alexco mineral properties
has been reviewed and approved by Alan
McOnie, FAusIMM, Vice President, Exploration, while that
regarding mine development and operations has been reviewed and
approved by Neil Chambers, P.Eng.,
Mine Superintendent, each of whom are Qualified Persons as defined
by National Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101").
About Alexco
Alexco owns the majority of the historic high-grade Keno Hill
Silver District in Canada's
Yukon Territory. Alexco also
operates a wholly-owned subsidiary business, Alexco Environmental
Group, that provides mine-related environmental services,
remediation technologies and reclamation and mine closure services
to both government and industry clients in North America and elsewhere.
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 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 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.