VANCOUVER, BC, July 27, 2020 /CNW/ - Alexco Resource
Corp. (NYSE American: AXU) (TSX:
AXU) ("Alexco" or
the "Company") today announced that it has
received from the Yukon Water Board (the "Water Board") the
final amended and renewed Water Use License (the "WUL") for
the Keno Hill Silver District (the "District" or "Keno
Hill"). The Company also provided an update on Keno Hill mining
operations, exploration and other corporate matters.
Mining Operations Update
With the recent announcement of the Company's decision to move
to production at Keno Hill, site activities have rapidly ramped up
and are progressing according to plan. With the increasing
activity, Alexco's primary focus continues to be the health and
safety of our employees, contractors and the communities in which
we operate and our COVID-19 management plan continues with strict
prevention measures in place, consistent with the guidelines of the
Yukon Government and health officials.
Underground activities are currently focused on rehab and
services at the Bellekeno mine, which will be the first mine to
deliver ore to the mill in Q4, 2020. Underground development at
Flame & Moth will begin in August, and Bermingham in September
once surface facilities including the water treatment plant are
commissioned. Initial delivery of the new underground mining fleet
including loaders, trucks, jumbos, and bolters has begun and all
major underground equipment units are on schedule for delivery
consistent with the underground development schedule. The current
focus of surface construction activities is the completion of camp
expansion facilities, administration complex and support facilities
as well as mill upgrades and modifications. The secondary ball mill
has been set and the concentrate regrind mills and tailings filter
press have been delivered to site. All other long lead time
equipment, both surface and underground, is either on order or in
transit and delivery and construction timelines remain consistent
with the overall development schedule.
The Company continues to advance with recruitment and onboarding
of the Keno Hill operations team. The senior management team at
Keno Hill is in place and key supervisors, operators, miners and
certified maintenance trades continue to be recruited, with a
current count of 65 employees on board at Keno Hill. In addition,
approximately 25 contract personnel are providing services with the
majority of the vendors having partnership or joint venture
arrangements in place with the First Nation of Na-Cho Nyak Dun
Development Corporation.
Overall, the development and production plan continues to be on
pace for mill commissioning and silver concentrate production in Q4
2020.
2020 Surface Exploration Update
Surface exploration drilling targeting the down plunge
extensions of the high grade Bermingham deposit has begun. The
initial 4,200 meters ("m") drilling campaign will test for
extensions of the previously discovered silver mineralization
approximately 200 m vertically below the NE Zone of the
Bermingham deposit, which overall contains an Indicated Mineral
Resource of 32.9 million ounces of silver at an average grade of
930 grams per tonne ("g/t") silver. The 2020 exploration
drilling program will be focused at depth, approximately 250 m
along strike northeast of the silver mineralization discovered in
2019, where best results returned 1,414 g/t silver over an
estimated true width of 8.15 m in the Bermingham Footwall vein
structure (see news release dated September
10, 2019 entitled "Alexco Intersects 8.1 Meters (true width)
at Composite Grade of 1,414 Grams per Tonne (45.5 oz/t) Silver at
"Bermingham Deep" Target)".
Receipt of WUL
On July 23, 2020 the Yukon Water
Board issued the final WUL authorizing Alexco to source and use
water as well as deposit designated waste streams into approved
facilities in and around planned production centres at the
Bellekeno, Flame & Moth, and Bermingham mines as well as the
District's mill facility. The term of the License is 17 years and
the conditions of the final WUL are substantially the same as the
draft WUL previously announced on June 24,
2020 (see press release dated June
24, 2020 entitled "Alexco Moves Forward to Production at
Keno Hill"). For complete details on the terms and conditions of
the WUL, a copy can be found on the Water Board's website at
https://apps.gov.yk.ca/waterline/f?p=127:LOGIN.
Clynt Nauman, Chairman and Chief
Executive Officer, commented, "With the final WUL now issued,
construction and development operations advancing, and other
commercial arrangements advancing on schedule in a strengthening
silver pricing environment, we are well on our way to become
Canada's only primary silver
producer. As scheduled, we look forward to commencing mine
production and expect to be shipping concentrate in Q4 2020".
Changes to Board of Directors
Alexco also announced today that Mr. Michael Winn has resigned from Alexco's Board of
Directors (the "Board") effective immediately in order to focus on
his increasing responsibilities at other publicly listed companies.
Mr. Winn was a founding Board member of Alexco and served as its
Chairman from 2006 through 2010 and again in 2015 to 2016. Mr Winn
will remain as a Strategic Advisor to Alexco's Board of Directors
going forward.
Mr. Nauman added, "I would like to thank Michael for his
dedication and extensive contributions to Alexco over the past 15
years. The Company has benefitted greatly from Michael's advice and
Board leadership and we are privileged to have him continue on as a
Strategic Advisor to Alexco, while also wishing him success in his
other future endeavors".
2020 Second Quarter Results
Alexco will release its second quarter 2020 financial results
after market close on Wednesday, August 12,
2020. Management will host an audio webcast conference call
to review the results on Thursday, August
13, 2020 at 3:00 pm Eastern
Time (Noon Pacific Time). To
participate in the live call, please use one of the following
methods:
Dial toll free from Canada or the
US: 1-800-319-4610
Dial from outside Canada or the
US: 1-604-638-5340
Confirmation
Code#:
Ask to join the Alexco conference call
Live audio
webcast: http://services.choruscall.ca/links/alexco202000813.html
Participants should connect five to ten minutes before the call.
The conference call will be recorded and an archived audio webcast
will be available at www.alexcoresource.com after the
call.
About Alexco
Alexco is a Canadian primary silver company that owns and
operates the majority of the historic Keno Hill Silver District, in
Canada's Yukon Territory, one of the highest-grade
silver deposits in the world. Alexco is currently advancing Keno
Hill to production and expects to start concentrate production and
shipments in Q4 2020. As per Alexco's 2020 pre-feasibility study,
Keno Hill is expected to produce an average of approximately 4
million ounces of silver per year contained in high quality
lead/silver and zinc concentrates. Total production over an 8-year
mine life is estimated at 1.18 million tonnes of ore at an average
rate of 430 tonnes per day at an average grade of 805 grams per
tonne. Keno Hill retains significant potential to grow and Alexco
has a long history of expanding the operation's Mineral Resources
through successful exploration.
Please visit the Alexco website at www.alexcoresource.com
Some statements ("forward-looking statements") in this news
release contain forward-looking information plans related to
Alexco's business and other matters that may occur in the future,
made as of the date of this news release. 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 risks and uncertainties relating to the COVID-19
pandemic including but not limited to business closures,
quarantines and a general reduction in consumer activity; actual
results and timing of exploration and development, mining,
environmental services and remediation and reclamation
activities; future prices of silver, gold, lead, zinc and other
commodities; possible variations in mineral 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 circumstances surrounding the
COVID-19 pandemic, although evolving, will stabilize or at least
not worsen; that the extent to which COVID-19 may impact the
Company, including without limitation disruptions to the mobility
of Company personnel, costs associated with implementation of
health and safety protocols, increased labour and transportation
costs, and other related impacts, will not change in a materially
adverse manner; Alexco will be able to raise additional capital as
necessary, that the proposed exploration and development activities
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.