VANCOUVER, BC, Sept. 15, 2020 /CNW/ - Alexco Resource
Corp. (NYSE American: AXU)
(TSX: AXU) ("Alexco" or the "Company")
today provides an update on its mine development progress at Keno
Hill and announces an extension of its 2020 surface exploration
drilling program on the Bermingham "deep" target. Additionally,
Alexco announces that Mr. Paul Jones
has joined the Company in the role of Senior Vice President,
Corporate Development.
Mine Development Update
Progress on site-wide capital projects including mill
modifications and infrastructure improvements continues to be on
pace for completion with mill commissioning and production of
silver concentrate in Q4 2020. In the mill, installation of the new
tailings filter press and second ball mill are 95% and 75%
complete, respectively. Other mill improvement projects underway
include the construction of a crusher enclosure and ventilation
system, installation of two concentrate regrind mills, modification
of the fine ore feeder system and upgrade of the employee dry and
office facilities. Camp expansion is approximately 75% complete
with the addition of two new camp accommodation units.
Rehabilitation and capital development continues on schedule at
each of the three underground mines slated for initial ore
production, with emphasis on the Bellekeno Mine where initial ore
will be used for commissioning of the mill in Q4. All major pieces
of new underground mine equipment have been delivered to site and
are currently operating or are being commissioned. This new fleet
includes two (2) CAT R1300 3.5 yard scoops, two (2) CAT AD22 20
tonne haul trucks, two (2) Atlas Copco 282 twin boom jumbos, two
(2) MacLean SSB bolters and other support gear. Ore will first be
delivered from the Bellekeno Mine where development to ore on the
680 level is already complete. At Flame & Moth advance of the
primary ramp is underway with approximately 270 meter ("m") of
primary ramp and level development required to cross cut the ore on
the 835 level. At the Bermingham mine, construction of the water
treatment plant is underway, which is required prior to resuming
ramp development.
The Company continues to successfully recruit and onboard the
mine operations team. Key managers, site supervisors and mine
engineering staff are all in place and the current focus continues
to be the onboarding of underground miners, maintenance specialists
and mill operators. The current head count at Keno Hill includes
110 Alexco employees and 29 contractors, with a target of 170
employees by the end of 2020. With a focus on
Yukon and Western Canada recruitment, over 90% of the
Alexco employees currently hired are from the Yukon and British
Columbia including citizens of the First Nation of
Na-Cho Nyak Dun.
With the significant increase in underground and district wide
operating activities at Keno Hill, the safety performance of all
employees and contractors remains excellent and exemplifies the
culture of safety excellence instilled at Keno Hill. The
Company's safety record has now exceeded over 7.5 years without a
Lost Time Accident at Keno Hill. The Company's strict COVID-19
management protocols and operating practices remain in place,
following the guidelines of the Chief Medical Officer, and
currently the Yukon continues to
report no active cases of COVID-19.
The Company is also pleased to announce that after an extensive
process, Ocean Partners has been selected as the concentrate
off-take provider for both the lead/silver and zinc concentrates to
be produced at Keno Hill. Finalization of the off-take agreements
is expected to be completed in September. Both concentrates will be
transported to and processed at a North American
smelter. Ocean Partners is an international base and precious
metals concentrate trading firm that offers a complete range of
trading services for miners, smelters, refiners and metal consumers
around the world.
2020 Surface Exploration Update
Alexco's surface exploration drilling program at the Bermingham
"deep" target is progressing well with approximately 3,500 m completed in six holes. A second drill
has been added and the program extended, anticipating a total of
7,500 m to 8,000 m of drilling to be completed in at least
12 holes by mid-November. The primary target is
approximately 200 m vertically below the NE Zone of the
Bermingham deposit, that contains a total Indicated Mineral
Resource of 32.9 million ounces of silver at an average grade of
930 grams per tonne silver.
The target zone for the remainder of the 2020 drilling is a
structural panel that extends 600 m
to 700 m along (strike) where
the geologic framework appears to be similar to that identified in
the shallower existing resource.
Initial results are anticipated to be available by the end of
Q4.
Corporate Update – Appointment of Paul Jones, Senior Vice President, Corporate
Development
Alexco is pleased to announce that Mr. Paul Jones has joined the Company as Senior Vice
President, Corporate Development. Mr. Jones brings nearly 20 years
experience in the mining sector in a variety of roles. Prior to
joining Alexco in September 2020, he
was Senior Vice President of Corporate Development for Alio Gold
Inc. where he played a leading role in the development and
execution of a corporate turnaround strategy, which ultimately
culminated in a merger with Argonaut Gold Inc. Previously Mr.
Jones worked for more than five years with an intermediate copper
producer in operations, financial planning and analysis, investor
relations, and business development; earlier in his career, he was
an investment banker focused on merger & acquisition advisory
for the mining and metals space.
Clynt Nauman, Chief Executive
Officer, commented, "We are happy with the construction and
development progress at Keno Hill, and look forward to mill
commissioning in Q4. We remain diligent and systematic in the
execution of our plan to transition to production and are clearly
pleased with the strength of the silver markets. On the exploration
front, in 2020 we are drilling much deeper holes (averaging
650 m) at our Bermingham 'deep'
target exploration program so progress is relatively slow,
nevertheless the decision to extend the drilling program is based
on recognition of a prospective zone which we believe may have a
structural framework similar to that which hosts the Bermingham
reserve and resource identified at shallower levels. Finally, we
are delighted to welcome Paul Jones
who will further strengthen our senior management team. Paul's
extensive experience in corporate development and investment
banking will be a significant benefit as we continue to grow our
Company."
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 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.
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.
View original
content:http://www.prnewswire.com/news-releases/alexco-provides-operations-update-extends-2020-exploration-program-at-bermingham-and-provides-corporate-update-301131149.html
SOURCE Alexco Resource Corp.