VANCOUVER, May 2, 2018 /PRNewswire/ - Alexco Resource
Corp. (NYSE AMERICAN: AXU, TSX: AXR) ("Alexco" or the
"Company") is pleased to announce the completion of the
Bermingham underground exploration decline and pending installation
of two diamond drill stations and mobilization of underground
drilling crews to complete an initial 5,000 meters ("m") of infill
and exploration drilling in and around the upper portion of the
high grade Bermingham silver deposit. At the same time the Company
is mobilizing two surface exploration drills to initiate a minimum
15,000 m surface exploration program
with a third surface rig to be added mid-summer. The surface
exploration program will test a number of relatively shallow silver
deposit targets in the vicinity of the Bermingham deposit as well
as commencing a deeper exploration program to test structural zones
with the potential to host large "Hector-Calumet" style silver
deposits.
Clynt Nauman, Alexco CEO and
Chairman commented, "With the finalization of the Bermingham
decline we will have completed approximately 40% of the underground
development work required for future production at Keno Hill. Once
complete at Bermingham, mining crews will relocate to Flame &
Moth where an approximate 520 m ramp
remains to be driven. Concurrent with underground ramp development
at Flame & Moth, we will complete an approximate two month
5,000 m in-fill drilling program at
the Bermingham deposit and also get our expanded surface
exploration program underway. Available results from this work will
be uploaded to a pre-feasibility study slated for completion in the
third quarter of 2018. On the permitting front, we remain in
the environmental assessment process in anticipation of a Water
Licence amendment to allow extraction and processing of Bermingham
ore; we expect to receive this final permit amendment either late
2018 or early 2019."
2018 Bermingham Underground Drilling Program
- Two diamond drill rigs will be positioned to complete
5,000 m of in-fill drilling on
approximate 10 m centers for
anticipated mining blocks in the upper portion of the Bermingham
deposit. The targeted in-fill area contains an estimated 110,000
tonnes of potentially mineable ore with an estimated head grade of
1,560 grams per tonne ("g/t") silver, 4.2% lead and 2.2% zinc
comprising the anticipated first two years of production.
- The majority of the targeted zone is in the newly discovered
Bear Vein, a steeply plunging approximately 3 m thick and 50 m
wide zone of high grade silver mineralization which "tops-out"
approximately 160 m below surface and
extends 230 m down dip where it
remains open to depth. Some holes will extend through the Bear Vein
into the Bermingham Footwall Vein which is similarly
mineralized.
- The proposed drilling program is scheduled to be completed in
July. Results from the 2018 underground drilling and the 2017
surface exploration drilling will be incorporated in a new
Bermingham resource calculation to be included in the
pre-feasibility study targeted for completion late in the third
quarter of 2018.
2018 Surface Exploration Program
- Alexco will initiate an expanded 15,000
m, $4 million surface
exploration diamond drilling program in the first week of May. The
program will comprise at least 45 holes and start with two drills
with a third to be added mid-summer.
- Since 2013 Alexco has focused its surface exploration on
discovery and follow up drilling to quickly establish grade
and size of two new silver deposits (Bermingham and Flame &
Moth). In this manner the Company has identified approximately 44
million ounces of indicated silver in those deposits with an
average grade of 498 g/t silver at Flame & Moth and 628 g/t
silver at Bermingham. For 2018 the Company is changing its
exploration strategy to identify new areas likely to host apparent
higher level silver-rich deposits (typified by the Bermingham
discovery), as well as initiating a new program targeting apparent
deeper level silver and base metal rich deposits (typified by the
historic Hector Calumet deposit) containing upward of 50 million
ounces of silver. The historic Hector-Calumet mine located
approximately 1 km northeast of Bermingham produced approximately
96 million ounces of silver at a reported grade of 1,090 g/t
silver.
- The surface exploration program will extend through to
October 2018 with results expected to
be finalized in the fourth quarter of 2018.
Flame & Moth Development, Optimization Studies
- Engineering and optimization work at the Flame & Moth
deposit has resulted in a plan to reposition the primary ramp
resulting in an approximate 200 m
reduction in pre-production development to approximately
520 m to reach the first ore level
access. This change will compress the underground development
schedule by up to two months. The Company is currently assessing
the implications of this favourable change, including options to
coordinate with or increase the amount of underground
pre-production work pending award of final production-related
permits related to the Bermingham deposit.
- The Flame & Moth decline will be driven on an approximate
15% grade and sized 3.7 m x
3.7 m and will accommodate new
exploration drill headings as well as haulage of a planned 260
tonnes of ore per day to the primary crusher which is located
within 200 m of the mine portal.
Other Corporate Updates
On April 30, 2018 the Company
replaced $6,304,508 of cash placed as
reclamation security for its Keno Hill property with a surety bond.
The Company provided collateral to the surety company totaling
$2,364,191 with a net result of
$3,940,317 being reclassified to
unrestricted cash. In addition, cash security in the amount of
$499,000 (US$398,000), originally posted by Alexco
Environmental Group's US subsidiary, in support of the Globeville
Smelter environmental remediation project in Colorado, USA, has been released to the
Company.
Qualified Persons
The disclosure in the 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 Scott Smith, P.Eng.,
Mine Manager, 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 Resource Corp. holds the historical high grade Keno Hill
Silver District located in Canada's Yukon Territory. Employing a
unique business model, Alexco also provides mine-related
environmental services, remediation technologies and reclamation
and mine closure services to both government and industry clients
through the Alexco Environmental Group, its wholly-owned
environmental services division.
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, 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.