Alexco drills 11.09 metres of 1,383 g/t silver at Keno Hill

Alexco Resources Corp. (AXU-TSX, AXU-NYSE) has released the balance of results from the 2021 directional drilling program at the Bermingham Northeast Deep zone at its flagship Keno Hill silver mine in the Canadian Yukon.

The company said the 17,742-metre drill program completed 52 intercepts through the multi-vein target zone, which extends approximately 500 metres along strike with at least a 100-metre vertical extent.

With all assays now received, the company is calculating a revised estimated mineral resource for the Bermingham deposit, which currently contains a silver resource of 33 million ounces indicated (including 18.2 million ounces of probable reserves) and 11.74 million ounces of inferred material.

The resource estimate for the newly defined zone is expected to be completed before year-end 2021, the company said.

In addition to previously reported initial results in September, 2021, the more significant intercepts from the balance of drilling include K-21-080A, which intersected the Bermingham Main vein over a true width of 11.09 metres from 187.75 metres containing 1,383 g/t silver, including 3.33 metres true width from 189 metres, containing 2,959 g/t silver.

The latest results come after Alexco recently commissioned the mill and launched initial production of lead-silver and zinc concentrates at Keno Hill. The 100%-owned United Keno Hill Mine ranks as Canada’s second largest producer of silver, behind Cobalt, Ontario.

The initial ore source for mill commissioning is the Bellekeno underground mine.

However, Alexco has continued to work on the ramp up and underground development programs at the Bermingham and Flame and Moth operations, which were scheduled to sequentially replace Bellekeno ore feed over the course of the first half of 2021.

A pre-feasibility study contemplated production of approximately 1.2 million tonnes at an average grade of approximately 805 g/t silver, 2.98% lead, and 1.13% zinc from four deposits (Bellekeno, Flame & Moth, Bermingham and Lucky Queen).

Commenting on the latest drill results, Alexco Chairman and CEO Clynt Nauman said the company is working with urgency to understand the size and tenor of the potentially expanded resource.

“Understanding the geology of the entire Bermingham deposit has significant exploration implications in a district where historically silver mineralization was considered shallow and discontinuous,” Nauman said.

“There remain extensive areas along several kilometres of the vein fault systems yet to be drill tested in favourable stratigraphy at depth.”

Meanwhile, on December 16, 2021, Alexco shares closed at $2.17 and currently trade in a 52-week range of $4.38 and $1.81.