Alexco hits 8.76 metres of 3,530 g/t silver in Yukon
Alexco Resources Corp. [AXR-TSX, AXU-NYSE] on Tuesday January 19 reported results from its 2020 surface exploration drilling program that focused on the Bermingham Northeast Deep Zone at its flagship Keno Hill silver project in the Yukon Territory.
Bermingham Northeast Deep is situated approximately 150 metres below the existing mineral resource that is currently in development for ore production, beginning in the second quarter of 2021.
The 2020 surface exploration program completed 7,653 metres of core drilling in 14 holes.
“The discovery of a significant zone of high-grade silver mineralization beneath the Bermingham deposit confirms that this is one of the more significant silver deposits in the entire Keno Hill Silver District, rivalling the extent of the historic Hector-Calumet deposit, which produced 96 million ounces of silver prior to shutting down in 1972,” said Alexco CEO Clynt Nauman.
“If the Northeast Deep zone discovery is further substantiated by the extensive drilling program we have planned for 2021, it is my view that the result will have important strategic implications for the future development of Keno Hill,” he said.
“Most interestingly, even as it currently stands, the western-most drill hole in the Northeast Deep zone – which returned a true thickness of 8.76 metres of mineralization grading 3,530 g/t silver with 14% lead and 3% zinc – is located just 250 metres east and 75 metres below the projected bottom of the Bermingham primary decline. This means that zone could be easily accessed from currently-planned infrastructure,” added Nauman.
Alexco recently said it has 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.
Work continues on the ramp up and underground development programs at the Bermingham and Flame and Moth operations, which are scheduled to sequentially replace Bellekeno ore feed over 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).
On Tuesday, Alexco shares rose 2.4% or 0.08 to $3.43 on volume of 262,986. The shares are trading in a 52-week range of $4.65 and $1.00.