VANCOUVER, Sept. 20, 2018
/PRNewswire/ - Alexco Resource Corp. (NYSE American: AXU)
(TSX:AXR) ("Alexco" or the "Company") today reports an updated
and expanded mineral resource estimate for the Bermingham deposit,
located within the Keno Hill Silver District ("KHSD") in
Canada's Yukon Territory.
Summary
As a result of exploration work conducted in 2017 and 2018, the
Bermingham indicated mineral resources have expanded from 17.3
million ("M") ounces to 33.3 M ounces
of contained silver at an average silver grade of 628 grams per
tonne ("g/t"), while inferred mineral resources have increased from
5.5 M ounces to 10.4 M ounces of contained silver at an average
silver grade of 526 g/t. The updated mineral resource estimate was
prepared by SRK Consulting (Canada) Inc. ("SRK") and a comparison to the
prior mineral resource estimate is outlined below:
Bermingham Mineral
Resource Estimate – September 17, 2018 Compared to January 3,
2017
|
|
Resource
Estimates
|
|
Category
|
|
September
17, 2018
|
January 3,
2017
|
Change
(%)
|
Indicated
Tonnes
|
(t)
|
1,651,500
|
858,000
|
+
93%
|
Indicated Silver
Grade
|
(g/t)
|
628 g/t
|
628 g/t
|
-
|
Total Indicated
Silver
|
(ounces)
|
33,350,300
|
17,324,000
|
+
93%
|
Inferred
Tonnes
|
(t)
|
616,550
|
220,000
|
+
180%
|
Inferred Silver
Grade
|
(g/t)
|
526 g/t
|
770 g/t
|
-
32%
|
Total Inferred
Silver
|
(ounces)
|
10,438,700
ounces
|
5,446,000
ounces
|
+
92%
|
With the addition to the silver mineral resource at Bermingham,
Alexco's district-wide indicated mineral resources at Keno Hill
increased by approximately 24% from 67.9
M ounces to 84.0 M ounces of
contained silver. Similarly, district-wide inferred mineral
resources increased by 28% to 23.0 M
ounces of contained silver.
Background
The Bermingham deposit comprises a closely spaced series of
subparallel steeply southeast dipping vein sets – identified
(hangingwall to footwall) as the Bermingham, Bermingham Footwall
and Bear veins that can be traced over a northeasterly strike
distance exceeding 850 meters ("m") in four zones identified (from
southwest to northeast) as the Etta, Arctic, Bear and Northeast
Zones that are separated by post-mineral faults. In addition, a
small resource is contained in a conjugate set of related West
Dipping veins. Recent detailed underground and surface drilling
work has focused on the Arctic and Bear Zones where the vein sets
are connected either laterally or vertically within the wider
Bermingham vein-fault structural corridor. Mineralization extends
from between 90 m to 160 m below surface to a depth of approximately
450 m where veining remains open.
A detailed mineral resource estimate by vein and zone was
prepared by SRK and is summarized below:
|
Mineral Resource
Category
|
Volume
(m3)
|
Tonnes
|
Total Ag
(oz)
|
Total
Au
(oz)
|
Total
Pb
(lbs)
|
Total
Zn
(lbs)
|
Average
Grade
Ag
(g/t)
|
Average
Grade
Au
(g/t)
|
Average
Grade
Pb
(%)
|
Average
Grade
Zn
(%)
|
INDICATED
|
Arctic
|
Bear
|
19,000
|
54,750
|
592,400
|
100
|
800,500
|
559,700
|
336
|
0.05
|
0.7
|
0.5
|
Bermingham
Main
|
142,600
|
428,400
|
7,656,300
|
1,500
|
9,484,400
|
13,045,700
|
556
|
0.11
|
1
|
1.4
|
Footwall
|
87,500
|
277,700
|
6,046,100
|
1,200
|
11,543,900
|
7,210,600
|
677
|
0.14
|
1.9
|
1.2
|
West
Dipper
|
8,000
|
24,600
|
666,600
|
90
|
769,800
|
653,800
|
843
|
0.11
|
1.4
|
1.2
|
Bear
|
Bear
|
59,100
|
189,450
|
8,442,200
|
1,130
|
15,665,400
|
5,352,350
|
1,386
|
0.18
|
3.8
|
1.3
|
Bermingham
Main
|
22,500
|
70,200
|
1,186,500
|
280
|
1,206,400
|
1,888,400
|
525
|
0.12
|
0.8
|
1.2
|
Footwall
|
71,700
|
217,400
|
3,835,800
|
900
|
6,136,300
|
5,884,300
|
549
|
0.13
|
1.3
|
1.2
|
Etta
|
Bermingham
Main
|
43,000
|
133,600
|
2,065,800
|
300
|
6,054,700
|
5,143,000
|
481
|
0.07
|
2.1
|
1.7
|
Footwall
|
57,100
|
168,600
|
1,713,700
|
350
|
4,508,800
|
6,588,300
|
316
|
0.06
|
1.2
|
1.8
|
North
East
|
Bear
|
9,900
|
29,700
|
601,000
|
120
|
947,550
|
1,666,750
|
629
|
0.12
|
1.4
|
2.5
|
Bermingham
Main
|
19,850
|
57,100
|
543,900
|
150
|
773,650
|
697,300
|
297
|
0.08
|
0.6
|
0.6
|
TOTAL
INDICATED
|
540,250
|
1,651,500
|
33,350,300
|
6,120
|
57,891,400
|
48,690,200
|
628
|
0.12
|
1.6
|
1.3
|
INFERRED
|
Arctic
|
Bear
|
19,800
|
59,000
|
676,450
|
130
|
1,413,750
|
805,900
|
357
|
0.07
|
1.1
|
0.6
|
Bermingham
Main
|
20,360
|
62,000
|
1,117,200
|
300
|
1,012,900
|
2,267,800
|
560
|
0.15
|
0.7
|
1.7
|
Footwall
|
60,400
|
190,900
|
2,827,400
|
800
|
4,240,300
|
1,324,200
|
461
|
0.13
|
1
|
0.3
|
West
Dipper
|
800
|
2,350
|
33,250
|
5
|
26,900
|
22,800
|
441
|
0.07
|
0.5
|
0.4
|
Bear
|
Bear
|
38,050
|
120,900
|
3,167,000
|
500
|
4,179,950
|
1,582,200
|
815
|
0.13
|
1.6
|
0.6
|
Bermingham
Main
|
950
|
3,000
|
19,100
|
5
|
15,600
|
107,600
|
197
|
0.06
|
0.2
|
1.6
|
Footwall
|
7,100
|
22,100
|
195,850
|
75
|
484,850
|
254,550
|
276
|
0.11
|
1
|
0.5
|
Etta
|
Bermingham
Main
|
290
|
850
|
6,100
|
0
|
7,400
|
15,700
|
221
|
0.05
|
0.4
|
0.8
|
Footwall
|
27,100
|
78,000
|
686,900
|
175
|
792,850
|
2,741,100
|
274
|
0.07
|
0.5
|
1.6
|
North
East
|
Bear
|
23,750
|
72,350
|
1,673,750
|
300
|
2,178,350
|
2,428,200
|
720
|
0.13
|
1.4
|
1.5
|
Bermingham
Main
|
1,800
|
5,100
|
35,700
|
10
|
61,050
|
67,950
|
217
|
0.07
|
0.5
|
0.6
|
TOTAL
INFERRED
|
200,400
|
616,550
|
10,438,700
|
2,300
|
14,413,900
|
11,618,000
|
526
|
0.12
|
1.1
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
1.
|
The effective date of
this mineral resource estimate is September 17, 2018.
|
2.
|
Mineral resources are
not mineral reserves and do not have demonstrated economic
viability. All numbers have been rounded to reflect the
relative accuracy of the estimates.
|
3.
|
Reported at a
contained metal value cut-off grade of CAD $185.00/t (US$0.80=C$1)
using consensus long term metal prices (US$) and recoveries (Ag
US$20.80/oz, recovery 96%; Pb US$1.10/lb, recovery 97%; Zn
US$1.20/lb, recovery 88%; Au US$1,450/oz, recovery 72%).
|
4.
|
Ag grades capped at
4,200 g/t; Zn capped at 6.5%; Pb capped at 6.0% for the Bermingham
vein.
|
5.
|
Ag grades capped at
13,000 g/t, Zn capped at 12% and Pb capped at 33% for the Bear
vein.
|
6.
|
Ag grades capped at
3,500 g/t, Zn capped at 8.5% and Pb capped at 13% for the
Bermingham Footwall vein.
|
7.
|
Ag grades capped at
3,600 g/t, Zn capped at 5.0% and Pb capped at 7.5% for the West
Dipper vein.
|
8.
|
Table numbers may not
add up due to rounding.
|
Alexco Chairman and Chief Executive Officer Clynt Nauman said, "The majority of the tonnage
in the Bermingham deposit resides in the Arctic and Bear Zones
where approximately 28 million of the 33 million indicated ounces
of silver are located at an average grade of approximately 700 g/t
silver. Looked at in total, the Bermingham deposit is now emerging
as a one of the larger discoveries in the Keno Hill
district, characterized by more than 1.6 million tonnes of
indicated mineralization with an average silver grade approximately
25% higher than our Flame & Moth deposit. This new resource
will be taken into consideration during the pre-feasibility mine
planning work scheduled for completion in October, 2018. Both the
completed resource update and the pre-feasibility study represent
the next steps in moving the Keno Hill District back toward
production."
Bermingham Deposit
Alexco has conducted surface diamond drilling programs at
Bermingham between 2009 and 2018 and underground drilling from the
exploration decline in 2018. The database at Bermingham currently
includes 203 drill holes for a total of 62,541 m of HQ core. The resource estimation
presented here incorporates the results from 405 vein intervals
from 151 holes compared with those from 93 holes that were used in
the January 2017 estimation.
Recent drilling has focused on obtaining reduced resource
definition intercept spacings, particularly on the upper part of
the high grade Bear vein that overall ranges in true width up to
6.4 m at 182 ounce per tonne ("oz/t")
silver (K-14-0537) and in grade up to 240 oz/t silver over
5.0 m true width (K-15-0580). This
mineralization has been traced over a down-plunge extent of
300 m (over a vertical range of
230 m) with a plunge width of up to
approximately 130 m, and the top of
the deposit in this vicinity being approximately 130 m below surface. In addition, the recent
drilling has increased coverage of the Bermingham and Bermingham
Footwall veins where a significant amount of the new resource has
been defined.
Interpretation of the consolidated drilling results has
confirmed the presence of the three mineralized veins that splay
and change orientation along strike within the north-northeast
striking and moderately to steeply southeast dipping Bermingham
vein-fault structural corridor. This structural corridor is
primarily divided into the Etta Zone that lies in the hangingwall
of the post-mineral Mastiff Fault exposed at the western end of the
historic Bermingham open pit and the extended Artic Zone in its footwall below the open pit.
The main through-going Bermingham and Bermingham Footwall veins
occur in both the Etta and the extended Arctic zones, while the
Bear vein and associated West Dipper vein set occur only within the
extended Arctic Zone at positions controlled by a flexure in the
Bermingham vein-fault.
The Bermingham deposit veins typically occur in structurally
complex zones as discrete veins 0.5 m
to more than 5 m wide with a five to
ten meter wide structurally damaged vein margin. The discrete veins
exhibit heavily-disseminated to massive mineralization while
mineralization in the vein margins is commonly more stringer-like.
The higher grade Bermingham mineralization is generally
characterized by the presence of a complex silver bearing mineral
assemblage including pyrargyrite (ruby silver), freibergite,
argentiferous galena, stephanite, polybasite and wire silver in a
dominantly sideritic gangue.
Metallurgical test work has demonstrated that silver and lead
recoveries from Bermingham are expected to be in the range of 94%
to 96%, while producing a lead concentrate grading 55% to 60% lead
and up to 30,000 g/t silver. Zinc recovery is predicted to be in
the range of 70% to 75% to a zinc concentrate grading in excess of
50% zinc.
The Bermingham mineral resource was estimated using 3-D Maptek
Vulcan block modeling software in multiple passes in nine by three
by six meter blocks by ordinary kriging. Grade estimates were based
on capped one meter composited assay data. Capping levels were set
to 4,200 g/t for silver for the Bermingham vein, 13,000 g/t for the
Bear vein, 3,500 g/t for the Bermingham Footwall vein and 3,600 g/t
for the West Dipper vein; lead was capped at 6.0% for the
Bermingham vein, 33.0% for the Bear vein, 13.0% for the Bermingham
Footwall vein and 7.5 for the West Dipper vein; and zinc was capped
at 6.5% for the Bermingham vein, 12.0% for the Bear vein, 8.5% for
the Bermingham Footwall vein and 5.0% for the West Dipper vein.
Blocks were classified as indicated mineral resources provided the
blocks were estimated within the first pass search ellipse using
multiple drill holes and a minimum of 5 composites. All other
interpolated blocks were classified as inferred mineral
resources.
A summary of all of Alexco's KHSD mineral resources
incorporating the updated mineral resource estimates for Bermingham
are appended to this release, and are available for review on the
Company's website at www.alexcoresource.com.
Qualified Persons
SRK prepared the updated mineral resource estimate for the
Bermingham deposit, and is independent of Alexco for purposes of
National Instrument 43-101 ‑ Standards of Disclosure for Mineral
Projects ("NI 43-101"). The Bermingham mineral resource
estimate was completed by Cliff
Revering, P.Eng., Principal Consultant (Geological
Engineering) with SRK. Mr. Revering is a Qualified Persons as
defined by NI 43-101 and has reviewed, verified and approved the
contents of this news release relating to the mineral resource
estimate for the Bermingham deposit. All mineral resources are
classified following the CIM Definition Standards for Mineral
Resources and Mineral Reserves (May
2014), in accordance with the CIM Estimation of Mineral
Resources and Mineral Reserves Best Practice Guidelines and with NI
43-101 guidelines.
The metallurgical testing information in this news release has
been reviewed and verified by Jeffrey B.
Austin P. Eng., President of International Metallurgical and
Environmental Inc. and a Qualified Person as defined by NI
43-101.
The disclosure of all other scientific and technical information
in this news release regarding projects on Alexco's mineral
properties has been reviewed and approved by Alan McOnie, FAusIMM, Alexco's Vice President,
Exploration and a Qualified Person as defined by NI 43-101.
The drill data and sampling protocols have been reviewed,
verified and compiled by Alexco's geologic staff since 2011 under
the supervision of Alan McOnie, Vice
President, Exploration for Alexco and a Qualified Person as defined
by National Instrument 43-101. A rigorous quality control and
quality assurance protocol is used on the project, including blank,
duplicate and standard reference samples in each batch of 20
samples delivered to the assay lab. Drill core samples included in
the updated resource estimation were direct shipped to ALS Minerals
Labs at Whitehorse, Yukon
Territory for preparation, with fire assay, multi-element
ICP analyses and ore grade over limits completed at the ALS
Minerals facility in North Vancouver,
British Columbia.
About Alexco
Alexco owns the majority of the historic high-grade Keno Hill
Silver District in Canada's
Yukon Territory as detailed in its
preliminary economic assessment (the "PEA") entitled "Preliminary
Economic Assessment of the Keno Hill Silver District Project,
Yukon, Canada", which is dated
March 29, 2017, with an effective
date of January 3, 2017, and anticipates the sequential
development of four high grade silver deposits over an eight year
mine life producing more than one million tonnes with an average
grade of 843 grams per tonne silver, 3.3% lead and 4.6% zinc.
Silver production is anticipated to be approximately 3.5 million
ounces per year. The PEA is preliminary in nature and includes
inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorized as mineral reserves, and
there is no certainty that the PEA will be realized. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
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.
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 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, the preparation and
anticipated timing for completion of a pre-feasibility study,
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 and timing
for completion of a pre-feasibility study 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.
APPENDIX I - Summary of Mineral
Resources
Summary of Resources
The following table sets forth the estimated mineral resources
for Alexco's mineral properties within the Keno Hill Silver
District:
|
Category1,2,9
|
Property
|
|
|
Tonnes
|
|
Ag
(g/t)
|
|
Au
(g/t)
|
|
Pb
(%)
|
|
Zn
(%)
|
|
Contained
Ag
(oz)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicated
|
Bellekeno
Deposit3&4
|
|
|
262,000
|
|
585
|
|
n/a
|
|
3.5%
|
|
5.3%
|
|
4,927,000
|
|
|
|
Lucky Queen
Deposit3&5
|
132,300
|
|
1,167
|
|
0.2
|
|
2.4%
|
|
1.6%
|
|
4,964,000
|
|
|
|
Flame & Moth
Deposit3&5
|
1,679,000
|
|
498
|
|
0.4
|
|
1.9%
|
|
5.3%
|
|
26,883,000
|
|
|
|
Onek3&5
|
|
|
700,200
|
|
191
|
|
0.6
|
|
1.2%
|
|
11.9%
|
|
4,300,000
|
|
|
|
Bermingham3&6
|
|
|
1,651,500
|
|
628
|
|
0.1
|
|
1.6%
|
|
1.3%
|
|
33,350,300
|
|
|
|
Total Indicated –
Sub-Surface
|
4,425,000
|
|
523
|
|
0.3
|
|
1.8%
|
|
4.7%
|
|
74,424,300
|
|
|
|
Elsa
Tailings7
|
|
2,490,000
|
|
119
|
|
0.1
|
|
1.0%
|
|
0.7%
|
|
9,527,000
|
|
|
|
Total Indicated –
All Deposits
|
6,915,000
|
|
378
|
|
0.2
|
|
1.5%
|
|
3.3%
|
|
83,952,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inferred
|
Bellekeno
Deposit3&4
|
|
|
243,000
|
|
428
|
|
n/a
|
|
4.1%
|
|
5.1%
|
|
3,344,000
|
|
|
|
Lucky Queen
Deposit3&5
|
|
257,900
|
|
473
|
|
0.1
|
|
1.0%
|
|
0.8%
|
|
3,922,000
|
|
|
|
Flame & Moth
Deposit3&5
|
|
365,200
|
|
356
|
|
0.3
|
|
0.5%
|
|
4.3%
|
|
4,180,000
|
|
|
|
Onek3&5
|
|
|
285,100
|
|
118
|
|
0.4
|
|
1.2%
|
|
8.3%
|
|
1,082,000
|
|
|
|
Bermingham3&6
|
|
|
616,550
|
|
526
|
|
0.1
|
|
1.1%
|
|
0.9%
|
|
10,438,700
|
|
|
|
Total
Inferred
|
|
|
1,767,750
|
|
404
|
|
0.2
|
|
1.4%
|
|
3.4%
|
|
22,966,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical
|
Silver
King8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resources
|
-
Proven, probable and indicated
|
99,000
|
|
1,354
|
|
n/a
|
|
1.6%
|
|
0.1%
|
|
4,310,000
|
|
|
-
Inferred
|
22,500
|
|
1,456
|
|
n/a
|
|
0.1%
|
|
n/a
|
|
1,057,000
|
Notes:
|
1.
|
All mineral resources
are classified following the CIM Definition Standards for Mineral
Resources and Mineral Reserves (May 2014), in accordance with the
CIM Estimation of Mineral Resources and Mineral Reserves Best
Practice Guidelines and the guidelines of NI 43-101.
|
2.
|
Mineral resources are
not mineral reserves and do not have demonstrated economic
viability. All numbers have been rounded to reflect the
relative accuracy of the estimates.
|
3.
|
The Keno Hill Silver
District is comprised of five deposits: Bellekeno, Lucky
Queen and Flame & Moth, Onek and Bermingham, of which
Bellekeno, Lucky Queen, Flame & Moth and Bermingham are
incorporated into the current mine plan outlined in the technical
report filed on SEDAR dated March 29, 2017, entitled "Preliminary
Economic Assessment of the Keno Hill Silver District Project,
Yukon, Canada". The mineral resource estimates for the project are
supported by disclosure in the news release dated March 29, 2017
entitled "Alexco and Silver Wheaton Amend Silver Purchase Agreement
and Alexco Announces Positive Preliminary Economic Assessment for
Expanded Silver Production at Keno Hill". The mineral resource
estimate for Bermingham has been updated by disclosure in note 6
below.
|
4.
|
The resource
estimates for the Bellekeno deposit are based on a geologic
resource estimate having an effective date of September 30, 2012.
The Bellekeno indicated mineral resources are as at September 30,
2013, and reflect the geologic resource less estimated subsequent
depletion from mine production.
|
5.
|
The resource
estimates for the Lucky Queen, Flame & Moth, Onek and
Bermingham deposits have an effective date of January 3,
2017.
|
6.
|
The resource
estimates for the Bermingham deposit has an effective date of
September 17, 2018 and is supported by disclosure in the news
release dated September 20, 2018 entitled "Alexco Updates
Bermingham Mineral Resource".
|
7.
|
The resource estimate
for the Elsa Tailings has an effective date of April 22, 2010, and
is supported by the technical report dated June 16, 2010 entitled
"Mineral Resource Estimation, Elsa Tailings Project, Yukon,
Canada".
|
8.
|
Historical resources
for Silver King are supported by disclosure in the news release
dated March 29, 2017 entitled "Alexco and Silver Wheaton Amend
Silver Purchase Agreement and Alexco Announces Positive Preliminary
Economic Assessment for Expanded Silver Production at Keno
Hill".
|
9.
|
The disclosure
regarding the summary of estimated resources for Alexco's mineral
properties within the Keno Hill District has been reviewed and
approved by Neil Chambers, P.Eng., Mine Superintendent and a
Qualified Person as defined by NI 43-101.
|
View original
content:http://www.prnewswire.com/news-releases/alexco-updates-bermingham-mineral-resource-300715902.html
SOURCE Alexco Resource Corp.