(All amounts in CDN$ unless otherwise
indicated)
VANCOUVER, BC, May 26, 2021 /CNW/ - Alexco Resource
Corp. (NYSE American: AXU) (TSX: AXU) ("Alexco" or
the "Company") today announces the filing of an updated
technical report (the "Technical Report") for its Keno Hill
operations in Yukon, Canada
("Keno Hill"), expanding the Mineral Reserve by 22% to 1.44
million tonnes, grading an average 804 grams per tonne
("g/t") silver ("Ag"), 3.84% zinc ("Zn"),
2.64% lead ("Pb"), and 0.31 g/t gold ("Au"), or
approximately 1,035 g/t silver equivalent ("AgEq"). The
updated reserve mine plan is projected to produce over 35.5 million
ounces of Ag over the next 8 years.
HIGHLIGHTS
- Updated life of mine plan. Average annual production
from Keno Hill of 4.4 million ounces of Ag at an average all-in
sustaining cost ("AISC"), including corporate costs and
working capital, of US$11.59/ounce
("oz").
- Robust economics at consensus silver prices with significant
leverage. Life of mine after-tax free cash flows of
approximately $189.7 million using
analyst consensus metal prices, which equates to approximately
$277.3 million at current Ag
prices1.
- High grade Reserve growth of 22% for contained Ag.
Mineral Reserves increased to 1.44 million tonnes, versus the
previous estimate of 1.17 million tonnes, while maintaining Keno
Hill's unique high-grade Ag grades of over 800 g/t (on
average).
- Organic growth inherent in Keno Hill. After ramping up
operations through 2021, the Technical Report contemplates a mill
expansion in year three of operations from approximately 400 tonnes
per day ("tpd") to approximately 550 tpd, helping to grow
payable Ag production to over 5.0 million oz in 2024.
- Further growth ahead for Keno Hill. The Technical Report
and updated Mineral Reserve estimate are based upon all drilling
completed at Keno Hill prior to 2019. Alexco plans to update the
property-wide mineral resource estimate by year end 2021 and will
incorporate the results from the ongoing 25,000 meter drill program
focused on the infill and extension of the Bermingham Northeast
Deep zone as well as the results of the successful drilling
campaigns of 2019 and 2020.
Clynt Nauman, Alexco's Chairman
and CEO said, "Today's updated Technical Report further
demonstrates that Keno Hill is a district capable of generating
significant financial returns from very high-grade Reserves over a
growing mine life in a tier-one jurisdiction. Our 2021
exploration drilling program continues to advance and will form the
basis for an updated mineral resource by the end of the year. We
anticipate that this work will confirm our long-held thesis that
production from Keno Hill should continue for many years to come,
and that its best days are ahead."
1. Based upon the
+20% Ag price sensitivity scenario, which approximates the current
Ag price
|
MINERAL RESERVE ESTIMATE
The Mineral Reserves (shown below) show the total Mineral
Reserves for Keno Hill; all Mineral Reserves are Probable Mineral
Reserves. External dilution and mineable recovery have been
applied to the Mineral Reserves. Please note that rounding of
tonnes, average grades, and contained metal may result in apparent
discrepancies with rounded totals.
Mineral Reserves
Deposit
|
Category
|
Tonnes
|
Ag
(g/t)
|
Pb
(%)
|
Zn
(%)
|
Au
(g/t)
|
Contained
Metal
(000 oz Ag)
|
Contained
Metal
(000 oz Au)
|
Contained
Metal
(M Ibs Pb)
|
Contained
Metal
(M Ibs Zn)
|
Bellekeno
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
12,809
|
936
|
13.00
|
7.30
|
0.00
|
385
|
0
|
4
|
2
|
Bellekeno
Surface
Stockpile
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
3,397
|
1150
|
21.70
|
4.50
|
0.00
|
126
|
0
|
2
|
0
|
Lucky
Queen
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
70,648
|
1269
|
2.71
|
1.56
|
0.13
|
2883
|
0
|
4
|
2
|
Flame and
Moth
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
721,322
|
672
|
2.69
|
6.21
|
0.49
|
15,590
|
11
|
43
|
99
|
Bermingham
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Probable
|
630,173
|
899
|
2.26
|
1.30
|
0.13
|
18,209
|
3
|
31
|
18
|
Total
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Probable
|
1,438,349
|
804
|
2.64
|
3.84
|
0.31
|
37,193
|
14
|
84
|
122
|
Notes:
|
|
1.
|
Mineral Reserves are
reported herein based on an NSR cutoff value using estimated
metallurgical recoveries, assumed metal prices and smelter terms,
which include payable factors, treatment charges, penalties, and
refining charges.
|
2.
|
Tonnage and grade
measurements are in metric units. Contained gold and silver ounces
are reported as troy ounces.
|
3.
|
The Bellekeno, Lucky
Queen, Flame & Moth and Bermingham deposits are incorporated
into the current mine plan supported by disclosure in the news
release dated May 26, 2021 entitled "Alexco Announces 22% Increase
to Silver Reserves; Updated Technical Report Demonstrates Robust
Economics at Keno Hill".
|
4.
|
Rounding as required
by reporting guidelines may result in apparent summation
differences between tonnes, grade and contained metal
content.
|
LIFE OF MINE PLAN
|
TOTAL
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026
|
2027
|
2028
|
2029
|
MILL
TONNES
|
1,438,349
|
62,057
|
137,120
|
166,380
|
199,980
|
199,980
|
199,980
|
199,980
|
199,980
|
72,892
|
Calculated Average
Grade
|
Ag (g/t)
|
804
|
947
|
1077
|
909
|
863
|
721
|
777
|
678
|
730
|
623
|
Au (g/t)
|
0.31
|
0.16
|
0.29
|
0.27
|
0.34
|
0.33
|
0.32
|
0.31
|
0.33
|
0.28
|
Pb (%)
|
2.64%
|
5.93%
|
2.93%
|
2.92%
|
3.41%
|
2.55%
|
2.23%
|
2.08%
|
1.93%
|
1.41%
|
Zn (%)
|
3.84%
|
4.85%
|
4.63%
|
3.24%
|
2.85%
|
3.52%
|
3.35%
|
3.46%
|
5.02%
|
5.52%
|
Payable Metal
Production
|
Ag (Oz)
|
33,510,354
|
1,686,763
|
4,308,807
|
4,398,913
|
5,018,716
|
4,168,804
|
4,501,660
|
3,914,647
|
4,209,621
|
1,302,423
|
Au (Oz)
|
5,082
|
81
|
419
|
450
|
691
|
779
|
787
|
758
|
844
|
273
|
Pb (lbs)
|
69.8
|
6.8
|
7.4
|
9.0
|
12.8
|
9.4
|
8.1
|
7.5
|
7.0
|
1.8
|
Zn (lbs)
|
75.8
|
4.2
|
8.9
|
7.2
|
7.6
|
9.6
|
9.1
|
9.4
|
14.2
|
5.7
|
NATIONAL INSTRUMENT 43-101
The Technical Report, titled "NI 43-101 Technical Report on
Updated Mineral Resource and Reserve Estimate of the Keno Hill
Silver District" with an effective date of April 1, 2021 and dated May 26, 2021 has been filed on SEDAR.
Readers are cautioned that the conclusions, projections, and
estimates set out in this news release are subject to important
qualifications, assumptions, and exclusions, all of which are
detailed in the Technical Report. To fully understand the summary
information set out above, the Technical Report filed on SEDAR at
www.sedar.com should be read in its entirety.
Qualified Persons
The Technical Report was compiled by Mining Plus with
contributions from a team of Qualified Persons as defined by
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101") as follows:
- Zach Allwright, P.Eng. of Mining
Plus
- Gilles Arseneau, Ph.D., P.Geo.
of SRK Canada Inc.
- Hassan Ghaffari, P.Eng of Tetra
Tech
- Paul Hughes, Ph.D., P.Eng. of
Mining Plus
- Cliff Revering, P.Eng., of SRK
Canada Inc.
- Kourosh Tarighi, M.Sc, P.Eng. of
Mining Plus
All Mineral Resources and Mineral Reserves are classified
following the CIM Definition Standards for Mineral Resources and
Mineral Reserves (May 2014), in
accordance with the CIM Estimation of Mineral Resources and Mineral
Reserves Best Practice Guidelines and NI 43-101.
See "Cautionary Note to Investors regarding Mineral Resource
and Mineral Reserve Estimates" below.
The technical information in this news release regarding the
Technical Report and the contents thereof was reviewed by
Zach Allwright, P.Eng., Paul Hughes
Ph.D., P.Eng. and Kourosh Tarighi,
M.Sc., P.Eng. each of Mining Plus, Gilles
Arseneau, Ph.D., P.Geo. and Cliff
Revering, P.Eng, both of SRK Canada Inc. and Hassan Ghaffari, P.Eng. of Tetra Tech, each of
whom is a Qualified Person and has approved the disclosure
herein.
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 started concentrate production and shipments
in Q1 2021. Keno Hill is expected to produce an average of
approximately 4.4 million ounces of silver per year contained in
high quality lead/silver and zinc concentrates. Keno Hill retains
significant potential to grow and Alexco has a long history of
expanding the operation's mineral resources through successful
exploration.
Please visit the Alexco website at www.alexcoresource.com.
Forward-Looking Statements
Some statements ("forward-looking statements") in this news
release contain forward-looking information concerning the results
of the Technical Report, anticipated results and developments in
Alexco's operations in future periods, planned exploration and
development of its properties, 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 may include, but
are not limited to, statements with respect to results of the
Technical Report; future mineral exploration including the
estimation of Mineral Reserves and Mineral Resources and the
realization of Mineral Reserve and Mineral Resource estimates and
anticipated timing regarding results from the ongoing drill program
and updated mineral resource estimate; future mine construction and
development activities; future mine operation and production; the
timing of activities and reports; the amount of estimated
development and operational expenses; projected operational and
economic metrics; the success of exploration and development
activities; the potential upside and growth in respect of certain
deposits comprising the Keno Hill Project; anticipated permitting
time lines; requirements for additional permits (or amendments to
existing permits); anticipated installation of certain
infrastructure; projected equipment and production capacity; plans
regarding the Company's 2021 drilling program; and potential
capital, revenue 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 risks and uncertainties relating to the COVID-19
pandemic including but not limited to business closures, travel
restrictions, 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 assumptions, projections, and estimates in the
Technical Report 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.
Cautionary Note to Investors regarding Mineral Resource and
Reserve Estimates
This press release has been prepared in accordance with the
requirements of Canadian provincial securities laws, which differ
from the requirements of U.S. securities laws. Unless otherwise
indicated, all mineral reserve and mineral resource estimates
included have been prepared in accordance with Canadian National
Instrument 43–101— Standards of Disclosure for Mineral
Projects ("NI 43–101") and the Canadian Institute
of Mining, Metallurgy and Petroleum (the "CIM") – CIM
Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended. NI 43–101 is an
instrument developed by the Canadian securities administrators that
establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral projects.
These definitions differ from the definitions in requirements under
United States securities laws
adopted by the United States Securities and Exchange Commission
(the "SEC").
Under Canadian rules, estimates of Inferred Mineral Resources
(as defined therein) may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. Investors are
cautioned not to assume that all or any part of an inferred mineral
resource exists or is economically or legally mineable. An
"Inferred Mineral Resource" is that part of a mineral resource for
which quantity and grade or quality are estimated on the basis of
limited geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity. An Inferred Mineral Resource has a lower level of
confidence than that applying to an Indicated Mineral Resource (as
defined herein) and must not be converted to a mineral reserve. It
is reasonably expected that the majority of Inferred Mineral
Resources could be upgraded to Indicated Mineral Resources with
continued exploration.
Investors are cautioned not to assume that all or any part of
Mineral Reserves and Mineral Resources determined in accordance
with NI 43-101 and CIM standards will qualify as, or be identical
to, mineral reserves and mineral resources estimated under the
standards of the SEC applicable to U.S. companies. The SEC has
adopted amendments to its disclosure rules to modernize the mineral
property disclosure requirements for issuers whose securities are
registered with the SEC. As a foreign private issuer that files its
annual report on Form 40-F with the SEC pursuant to the
multi-jurisdictional disclosure system, the Corporation is not
required to provide disclosure on its mineral properties under the
SEC's new rules and will continue to provide disclosure under NI
43-101 and the CIM standards. If the Corporation ceases to be a
foreign private issuer or lose its eligibility to file its annual
report on Form 40-F pursuant to the multi-jurisdictional disclosure
system, then the Corporation will be subject to the SEC's new
rules, which differ from the requirements of NI 43-101 and the CIM
standards.
Accordingly, information contained in this press release that
contain descriptions of the Corporation's mineral deposits may not
be comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements under
the United States federal
securities laws and the rules and regulations
thereunder.
Alternative Performance Measures
Alternative performance measures are furnished to provide
additional information. These non-GAAP performance measures are
included in this news release because these statistics are key
performance measures that management uses to monitor performance,
to assess how the Company is performing, and to plan and assess the
overall effectiveness and efficiency of mining operations.
These performance measures do not have a standard meaning within
IFRS and, therefore, amounts presented may not be comparable to
similar data presented by other mining companies. These performance
measures should not be considered in isolation or as a substitute
for measure of performance in accordance with IFRS. The
Company has included certain alternative performance measures
including "All-in Sustaining Cost" (AISC) per ounce of silver in
this press release. All-in sustaining cost per silver ounce
is calculated with reference to World Gold Council guidance, and is
based upon contained silver ounces produced, excludes impacts of
the streaming agreement with Wheaton Precious Metals, and included
general and administrative, exploration, other expenses and
sustaining capital expenditures.
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SOURCE Alexco Resource Corp.