VANCOUVER, BC, Nov.
24, 2020 /PRNewswire/ - Alexco Resource Corp.
(NYSE American: AXU) (TSX: AXU) ("Alexco" or the
"Company") is pleased to announce commissioning of the Keno Hill
District Mill (the "Mill") commencing as scheduled, with initial
production of lead/silver and zinc concentrates underway. The
initial ore source for Mill commissioning is the Bellekeno
underground mine where drilling, blasting and extraction of ore
from long hole stopes continues.
Clynt Nauman, Chairman and CEO
commented, "Initial commissioning of our mill is a significant
milestone on our journey toward establishing Alexco as Canada's only primary silver producer. This
achievement has only been possible with the hard work and
determination of all our employees and contractors who have worked
safely to deliver this milestone. Congratulations to all! There is
still a lot of work ahead in our ramp up and underground
development programs at the Bermingham and Flame and Moth
operations, which are scheduled to sequentially replace Bellekeno
ore feed over the course of the first half of 2021.
Total personnel employed at Keno Hill now includes just over 150
employees and contractors with over 93% residing in either
Yukon or British Columbia. In the near term,
underground development activities are continuing at both the Flame
and Moth and Bermingham mines with focus on advancements of the
primary ramps and haulage ways, establishing vent level access and
installing remaining underground infrastructure. Contract raise
crews are scheduled to mobilize in early December to begin
installation of the Bermingham surface raise. The majority of
surface infrastructure and mill projects are nearing completion,
including the recent commissioning of the Bermingham water
treatment plant.
2020 Exploration Program
Alexco's surface exploration drilling program, which is testing
the Bermingham "deep" target, is complete with drilling and surface
exploration crews scheduled to demobilize by the end of November.
In total, this year's surface exploration program drilled 7,653
meters with 11 holes reaching the target zone and incurring a
direct program cost of approximately $3.5
million. Results from this drilling program are expected to
be released next month or in January
2021, depending on receipt of assay results. In the
meantime, underground infill and extension/exploration drilling
will begin as scheduled in early 2021.
COVID-19 Update, Ramp Up Schedule
On November 20, 2020, the Yukon
Government announced 14-day self isolation requirements for persons
entering Yukon that are not deemed
critical workers. The Company is preparing an operations plan to
firstly, maintain development activities at Keno Hill while
adhering to current health directives and Yukon government's travel restrictions and
secondly, assessing the longer-term scheduling impact of
alternative development and ore supply strategies in light of new
COVID-19 protocols and restrictions.
Qualified Persons
The disclosure in this news release of scientific and technical
information regarding exploration projects on Alexco's 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., Chief Mine Engineer, both of whom are
Qualified Persons as defined by National Instrument 43-101 –
Standards of Disclosure for Mineral Projects ("NI 43-101").
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 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.
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, travel
restrictions, 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.