Alexco Drills up to 12 Meters (true width) of 1,019 Grams per Tonne Silver at Bermingham; Provides Updates on Permitting and Underground Development

2018-08-09 / @newswire

 

VANCOUVER, Aug. 9, 2018 /CNW/ - Alexco Resource Corp. (NYSE American:AXU) (TSX:AXR) today announced initial results from its ongoing 2018 drilling program at the high-grade Bermingham deposit in the Keno Hill Silver District in Canada's Yukon Territory. Infill resource and peripheral zone drilling is currently underway from underground in the Bermingham exploration decline and from surface (for deeper extensions). The drilling will further define the previously outlined resource (858,000 tonnes with an average grade of 628 grams per tonne ("g/t") silver ("Ag") totaling an indicated 17.3 million ounces of silver), as well as more accurately outline and/or extend the upper zone of the potentially mineable tonnes (totaling 220,000 tonnes with an average grade of 1,276 g/t silver) included in the updated preliminary economic assessment dated March 29, 2017 (see news releases dated December 8, 2016, entitled "Alexco Expands Bermingham Silver Deposit, Initial Tests Confirm Excellent Metallurgical Performance" and  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"). In addition, Alexco announces updates on permitting for the Bermingham deposit and underground development at the Flame & Moth deposit.

Highlights

In 2018 a combined total of 26 holes have been drilled from surface and underground at the Bermingham deposit with results available from 14 holes and include the following highlights:

  • Significant silver-rich intercepts have been obtained from fourteen infill holes drilled within or proximal to the Bermingham resource. True width intercepts of the Bear Vein ranging up to 12.28 meters ("m") grading 1,019 g/t (32.8 ounces per tonne ("oz/t")) Ag in hole BMUG18-012 and 2.28 m grading 9,723 g/t (312.6 oz/t) Ag in drill hole BMUG18-015 (see Assay Composite Table, Drill Hole Location Map and Drill Hole Detail Table in the Appendices of this news release);
  • Other significant intersections from the associated Bermingham and Bermingham Footwall veins include true width intercepts of 4.17 m grading 5,373 g/t (172.8 oz/t) Ag in hole BMUG18-015 and 4.26 m grading 1,958 g/t (63.0 oz/t) in hole BMUG18-008;
  • Alexco received a positive Decision Document on July 27, 2018 by the Yukon Government for the development and production at the Bermingham deposit. Alexco has submitted a water license renewal application to the Yukon Water Board for processing and milling ore from the Bermingham mine; and
  • Advancement of the Flame & Moth decline continues with the drive ~45% complete and continuing apace.

Alexco Chairman and CEO Clynt Nauman commented, "The primary goal of our Bermingham exploration program is to confirm and expand the Bermingham silver resource through tightening up drill spacing within the resource and potential production areas and to better define open extensions. We are meeting success on all fronts. As we systematically expand the drill coverage, our understanding of the complex mineralized vein system, including the high grade Bear Vein, continues to increase. In the meantime continued exploration drilling from the surface in the vicinity of the Bermingham deposit is expected to also contribute to a new resource estimate which will be released concurrent with our prefeasibility study either late Q3 or early Q4. Not to be overshadowed, we have achieved a milestone with the submission of the water license renewal application while also increasing the pace of our Flame and Moth underground development."

Drilling

To date, eleven underground drill holes and three surface holes totaling 2,396 m of HQ core drilling at Bermingham have assays completed. The drilling results confirm the vein model interpretation and continuity of significant high grade silver values. The interconnected mineralized vein systems at Bermingham include very high grade shoots such as the Bear Vein where our curre­nt Preliminary Economic Assessment mine plan identifies 220,000 potentially mineable tonnes grading 1,276 g/t Ag, sitting within more extensive zones of "lower" grade mineralization with true widths up to 8.62 m thick grading more than 600 g/t Ag (see 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").

Since the completion of the underground exploration decline at Bermingham in May 2018, underground resource infill drilling utilizing two drill rigs commenced and to the date of this release, 3,650 m of underground HQ core drilling has been completed in 21 drill holes. At the same time, surface drilling to complement and extend the deeper part of the resource commenced in early June, and to date five holes for 1,499 m of HQ core drilling has been completed. Assay results for 14 of these 26 holes have been completed and are reported here.

The underground drill program is designed to provide close spaced intersections at 10 – 15 m of the high-grade Bear Vein Indicated Resource that might allow conversion to a Measured Resource category in the upper levels of planned mine development once the program is complete, and to also intersect the other adjacent Bermingham veins to extend the current resource.

2018 Progress Drill Composite Assay Interval Highlights

BMUG18-012

25.07 m interval (12.28 m true width) from 136.25 m at 1,019 g/t (32.8 oz/t) Ag; 2.07% lead ("Pb"); 1.27% zinc ("Zn"); that includes the 2.07 m interval (1.01 m true width) from 138.05 m at 8,435 g/t (271.2 oz/t) Ag.

 

BMUG18-015

7.59 m interval (4.17 m true width) from 136.06 m at 5,373 g/t (172.8 oz/t) Ag; 5.88% Pb; 4.91% Zn; that includes the 4.15 m interval (2.28 m true width) from 137.20 m at 9,723 g/t (312.6 oz/t) Ag.

 

BMUG18-008

6.46 m interval (4.26 m true width) from 115.20 m at 1,958 g/t (63.0 oz/t) Ag; 5.81% Pb; 2.69% Zn.

 

 

BMUG18-010

10.17 m interval (7.22 m true width) from 101.53 m at 841 g/t (27.0 oz/t) Ag; 1.73% Pb; 1.50% Zn; that includes the 6.17 m interval (4.38 m true width) from 101.53 m at 1,288 g/t (41.4 oz/t) Ag.

 

BMUG18-007

1.11 m interval (0.77 m true width) from 111.24 m at 3,428 g/t (110.2 oz/t) Ag; 12.14% Pb; 3.12% Zn; that includes the 0.66 m interval (0.46 m true width) from 111.24 m at 5,650 g/t (181.6 oz/t) Ag.

 

K-18-0677

1.14 m interval (0.98 m true width ) from 311.96 m at 1,515 g/t (48.7 oz/t) Ag; 4.08% Pb; 3.01% Zn; that includes the 0.44 m interval (0.38 true width) from 311.96 m at 3,490 g/t (112.2 oz/t) Ag; and also the 1.60 m interval (1.38 m true width) from 325.75 m at 1,040 g/t (33.4 oz/t) Ag; 1.10% Pb; 0.92% Zn; that includes the 0.13 m interval (0.11 m true width) from 325.75 m at 12,126 g/t (389.8 oz/t) Ag.

 

BMUG18-005

3.87 m interval (3.10 m true width) from 92.13 m at 786 g/t (25.3 oz/t) Ag; 1.4% Pb; 0.37% Zn; that includes the 0.54 m interval (0.43 m true width) from 92.13 m at 4,820 g/t (155.0 oz/t) Ag.

Details of the drill holes are shown in Table 1. Composite assay grades and intervals, calculated at a 30 g/t Ag cutoff restricted to include a maximum of two meters unmineralized dilution, used to identify the mineralized zones are shown in Table 2. 

Permitting Update

Alexco has completed the environmental assessment process for the Bermingham Development and Production Program with the issuance of a positive Decision Document on July 27, 2018 by the Yukon Government as the Decision Body. The Decision Document outlines a number of standard terms and conditions for the development and mine production at the Bermingham deposit. These terms and conditions will be incorporated into the Company's Quartz Mining and Water Licences for Bermingham. With the issuance of the Decision Document, Alexco has recently submitted a water license renewal application to the Yukon Water Board for processing and milling ore and discharging treated water from the Bermingham mine.

Mine Development Update

Following completion of the Bermingham exploration decline in early May 2018, Alexco relocated its underground mine development team and equipment to the Flame and Moth deposit to resume decline and ramp development. To date, 283 meters of primary development has been completed including supporting remuck bays and sumps. The Flame and Moth decline is being constructed at a design of 15% grade and sized 3.7 m wide x 4.0 m high and will accommodate new underground drilling 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. Approximately 310 m of ramp development and supporting remuck bays remains to reach the first ore level access at the Lightning Zone within the Flame and Moth deposit.

Notes

The 2018 exploration drill program and sampling protocol has been reviewed, verified and compiled by Alexco's geologic staff under the supervision of Alan McOnie, Vice President, Exploration for Alexco and a Qualified Person as defined by National Instrument 43-101 ("NI-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 deliver to the assay lab. Drill core samples were direct shipped to ALS Minerals Lab at Whitehorse, Yukon for preparation, and to the ALS Minerals facility in North Vancouver, British Columbia for fire assay, multi-element ICP and overlimit analyses.

The disclosure of all other scientific and technical information contained in this news release regarding projects on Alexco's mineral properties have been reviewed and approved by Mr. Alan McOnie, FAusIMM, Alexco's Vice President, Exploration, while that regarding mine development and operations has been reviewed by Neil Chambers, P.Eng., Mine Superintendent, 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 owns the majority of the historic high-grade Keno Hill Silver District in Canada's Yukon Territory. Alexco published an updated Preliminary Economic Assessment in March 2017, which 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.

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, 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.

APPENDICES

Table 1 - Drill Hole Details

Hole

Easting

Northing

Elevation (m)

Surface Azimuth

Surface Dip

Length (m)

Date Started

Date Completed

BMUG 18-003

479026.41

7086929.35

1161.63

138

-11

105

2018-05-18

21/05/18

BMUG18-004

479021.824

7086941.655

1163.624

117

-15

108

17/05/18

21/05/18

BMUG18-005

479027.123

7086929.277

1161.546

131

-12

99

21/05/18

26/05/18

BMUG18-006

479022.01

7086941.362

1163.648

124

-12

117

21/05/18

25/05/18

BMUG18-007

479022.201

7086941.892

1163.462

126

-24

118.5

25/05/18

29/05/18

BMUG18-008

479026.056

7086928.846

1161.266

139

-20

124.5

25/05/18

29/05/18

BMUG18-009

479022.316

7086941.959

1163.52

127

-19

114

29/05/18

2/06/18

BMUG18-010

479025.927

7086928.788

1161.575

139

-16

121.5

29/05/18

6/06/18

BMUG18-011

479022.062

7086941.759

1163.28

136

-27

130.5

2/06/18

8/06/18

BMUG18-012

479025.772

7086928.624

1161.222

143

-30

176.52

6/06/18

17/06/18

BMUG18-015

479025.971

7086928.6

1161.301

143

-27

234

19/06/18

25/06/18

K-18-0677

479094.7825

7086617.405

1356.95

286

-56

362

8/05/18

20/05/18

K-18-0686

479095.5403

7086617.673

1356.952

294

-62

400.5

25/05/18

2/06/18

K-18-0689

479021.9052

7086665.678

1350.482

286

-68

289.5

2/06/18

7/06/18

Figure 1 – Drill Hole Locations (CNW Group/Alexco Resource Corp.)

Table 2 - Preliminary 2018 Bermingham Assay Composites

Hole

From (m)

To (m)

Interval (m)

Est. True Width (m)1

Ag (g/t)

Ag (oz/t)

Au (g/t)

Pb (%)

Zn (%)

Vein Name2

BMUG-003

88.50

98.05

9.55

7.64

121

3.89

0.01

0.19

0.87

BR Vein

including

94.50

95.16

0.66

0.53

1012

32.54

0.03

1.45

6.88


BMUG18-004

99.00

102.41

3.41

2.86

208

6.69

0.01

2.18

0.02

BR Vein

Including

99.00

99.41

0.41

0.34

1540

49.51

0.08

17.55

1.07


105.00

106.50

1.50

1.26

208

6.69

0.01

0.78

0.09



BMUG18-005

87.64

88.13

0.49

0.39

178

5.72

0.03

1.33

0.51

BR Vein


92.13

96.00

3.87

3.10

786

25.26

0.02

1.40

0.37


Including

92.13

92.67

0.54

0.43

4820

154.96

0.09

6.72

0.41



BMUG18-006

96.58

102.00

5.42

4.55

107

3.44

0.02

0.41

0.40

BR Vein


109.50

115.50

6.00

5.04

99

3.19

0.00

0.10

0.65


Including

112.95

113.58

0.63

0.53

426

13.70

0.03

0.13

3.89



BMUG18-007

111.24

112.35

1.11

0.77

3428

110.20

0.26

12.14

3.12

BR Vein

Including

111.24

111.90

0.66

0.46

5649

181.63

0.42

20.31

4.60


BMUG18-008

12.75

13.65

0.90

0.59

877

28.20

0.07

1.30

1.50

BR Vein


115.20

121.66

6.46

4.26

1958

62.95

0.17

5.81

2.69



BMUG18-009

104.01

107.59

3.58

2.72

315

10.12

0.02

0.91

0.32

BR Vein

Including

104.82

106.50

1.68

1.28

594

19.10

0.04

1.77

0.46


BMUG18-010

85.50

86.66

1.16

0.82

147

4.73

0.01

0.66

0.05

BR Vein


95.72

96.32

0.60

0.43

43

1.38

0.02

0.60

0.04



101.53

111.70

10.17

7.22

841

27.05

0.06

1.73

1.50


Including

101.53

107.70

6.17

4.38

1288

41.41

0.07

2.82

2.09


and Including

111.14

111.70

0.56

0.40

416

13.37

0.08

0.22

0.84



118.84

120.19

1.35

0.96

506

16.27

0.06

0.01

0.02



BMUG18-011

12.00

13.50

1.50

0.90

33

1.05

0.01

0.38

0.05



121.50

129.22

7.72

4.63

2045

65.78

0.21

7.14

0.97

BR Vein

Including

124.26

127.87

3.61

2.17

3483

111.99

0.25

12.22

1.56

BMUG18-012

136.25

161.32

25.07

12.28

1019

32.76

0.13

2.07

1.27

BR Vein

Including

138.05

140.12

2.07

1.01

8435

271.17

0.88

15.50

5.76

Hole

From (m)

To (m)

Interval (m)

Est. True Width (m)1

Ag (g/t)

Ag (oz/t)

Au (g/t)

Pb (%)

Zn (%)

Vein Name2

and Including

148.22

154.71

6.49

3.18

963

30.97

0.11

2.14

1.31



BMUG18-015

130.50

132.70

2.20

1.21

141

4.55

0.19

0.12

0.07

BR Vein


136.06

143.65

7.59

4.17

5373

172.75

0.38

5.88

4.91


Including

137.20

141.35

4.15

2.28

9723

312.58

0.66

10.68

8.85



204.00

213.00

9.00

6.66

647

20.80

0.07

0.60

1.33

BM FW Vein

Including

206.38

213.00

6.62

4.90

854

27.47

0.07

0.67

1.56


221.68

226.15

4.47

3.31

188

6.04

0.10

1.35

1.18


Including

224.29

225.43

1.14

0.84

484

15.56

0.25

4.70

3.48



K-18-0677

284.00

284.62

0.62

0.30

45

1.44

0.03

0.59

1.58

Aho Vein


311.96

313.10

1.14

0.98

1515

48.70

0.13

4.08

3.01

BM Main

Including

311.96

312.40

0.44

0.38

3490

112.20

0.21

9.48

6.00


325.75

327.35

1.60

1.38

1040

33.43

0.13

1.10

0.92

BM splay

Including

325.75

325.88

0.13

0.11

12126

389.84

1.35

9.69

8.18


332.08

345.61

13.53

9.47

457

14.68

0.06

0.66

0.72

FW Vein

Including

335.54

338.72

3.18

2.23

1022

32.85

0.13

1.98

1.39

and Including

341.00

341.76

0.76

0.53

1580

50.80

0.08

1.04

0.24


K-18-0686

280.58

284.70

4.12

2.22

156

5.01

0.04

1.00

0.59

Aho Vein

Including

284.40

284.70

0.30

0.16

958

30.80

0.28

1.84

4.46


323.37

328.07

4.70

3.90

313

10.07

0.06

0.46

0.93

BM Main

Including

324.85

326.84

1.99

1.65

601

19.31

0.10

0.79

1.92


333.21

334.71

1.50

1.25

143

4.58

0.04

0.05

0.47

BM splay


356.94

357.88

0.94

0.65

221

7.11

0.08

1.47

0.91

FW Vein


362.05

363.74

1.69

1.15

37

1.19

0.02

0.28

0.37

BR Vein


371.00

371.52

0.52

0.35

463

14.89

0.03

7.14

0.07



373.37

374.00

0.63

0.43

112

3.60

0.03

0.83

0.42



K-18-0689

248.00

254.00

6.00

4.44

252

8.10

0.04

0.28

0.82

BM Main

Including

250.80

252.80

2.00

1.48

557

17.89

0.06

0.62

1.38


256.50

263.45

6.95

5.14

299

9.60

0.06

0.43

1.20

BM splay

Including

261.35

262.80

1.45

1.07

1295

41.63

0.15

1.48

4.48


265.80

268.35

2.55

1.43

211

6.79

0.03

0.88

0.34

BM FW splay

Including

266.00

266.42

0.42

0.24

774

24.88

0.11

2.15

0.80


271.00

275.60

4.60

2.58

485

15.60

0.06

0.84

0.71

BM FW Vein

Including

275.15

275.60

0.45

0.25

4480

144.03

0.43

6.66

0.87


 

Table 2

Preliminary Bermingham Assay Composites









Calculated at 30 g/t Ag cut-off with a maximum of two meters unmineralized internal dilution.


Calculated at 400 g/t Ag cut-off with a maximum of two meters unmineralized internal dilution.





1

Estimated True Width from modelled vein attitude and drill hole intercept orientation.

2

Correlated Vein : BM = Bermingham, BM FW = Bermingham Footwall Vein, BR = Bear Vein.

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SOURCE Alexco Resource Corp.

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