ALEXCO RESOURCE CORP. VANCOUVER, Jan. 3, 2017 /PRNewswire/ - Alexco Resource Corp. (TSX:AXR, NYSE-MKT:AXU) today reports an updated mineral resource estimate for the Bermingham deposit, located within the Keno Hill Silver District ("KHSD") in Canada's Yukon Territory. The Bermingham indicated mineral resources are expanded from 5.2 million ounces to 17.3 million ounces of contained silver, while inferred mineral resources increased from approximately 0.7 million ounces to 5.5 million ounces of contained silver. As a result, Alexco's district-wide indicated mineral resources at Keno Hill increased approximately 22% from 55.4 million ounces to 67.5 million ounces of contained silver.
The Bermingham deposit comprises a westerly Etta Zone and a fault separated larger easterly Arctic Zone. Recent work (2015 - 2016) has focused on the northeasterly extension of the Arctic Zone where several structurally controlled sets of subparallel moderately to steeply southeast dipping veins including the Bermingham, Bermingham Footwall and Bear veins splay and rejoin in a manner controlled by the host rock stratigraphy. A westerly and shallower dipping conjugate vein set (West Dipper vein) is also present. All vein sets in the northeasterly Arctic Zone are closely associated, connected either laterally or vertically within the wider Bermingham vein-fault structural corridor that is silver enriched over a 660 m strike length, with mineralization extending from between 90 m to 160 m below surface to a depth of approximately 350 m where veining remains open.
The updated mineral resource estimate was prepared by SRK Consulting (Canada) Inc. ("SRK") and is summarized as follows:
Deposit Zone Class Vein Tonnage Silver (g/t) Lead (%) Zinc (%) Gold (g/t) Silver Oz
------- ---- ----- ---- ------- ------------ ------- ------- ---------- ---------
Bermingham Arctic Indicated Bermingham 248,000 376 1.47 1.33 0.12 3,001,000
Vein
Structure
---------
Bear 148,000 1,376 4.51 1.76 0.22 6,532,000
---- ------- ----- ---- ---- ---- ---------
Bermingham Footwall 122,000 717 3.63 1.33 0.20 2,823,000
------------------- ------- --- ---- ---- ---- ---------
West-Dipper 21,000 729 2.47 2.32 0.12 502,000
----------- ------ --- ---- ---- ---- -------
Total Arctic Indicated 539,000 12,858,000
---------------------- ------- ----------
Etta Indicated Bermingham 124,000 421 2.26 2.20 0.07 1,681,000
--------- ------- --- --- ---- ---- ----
Bermingham Footwall 195,000 444 1.28 1.76 0.06 2,779,000
------------------- ------- --- ---- ---- ---- ---------
Total Etta Indicated 319,000 4,460,000
-------------------- ------- ---------
Total Indicated 858,000 628 2.40 1.65 0.13 17,318,000
Arctic Inferred Bermingham 46,000 460 1.92 2.21 0.12 680,000
-------- ------ --- --- ---- ---- ----
Bear 68,000 522 2.62 1.15 0.14 1,146,000
---- ------ --- ---- ---- ---- ---------
Bermingham Footwall 72,000 1,276 1.24 3.06 0.18 2,961,000
------------------- ------ ----- ---- ---- ---- ---------
West-Dipper 4,000 1,802 17.19 8.23 0.54 246,000
----------- ----- ----- ----- ---- ---- -------
Total Arctic Inferred 191,000 5,033,000
--------------------- ------- ---------
Etta Inferred Bermingham 3,000 474 2.12 2.36 0.07 47,000
-------- ----- --- --- ---- ---- ----
Bermingham Footwall 26,000 436 1.24 1.69 0.07 371,000
------------------- ------ --- ---- ---- ---- -------
Total Etta Inferred 30,000 418,000
------------------- ------ -------
Total Inferred 220,000 770 2.13 2.21 0.15 5,451,000
Notes:
------
1. The effective date of this mineral
resource estimate is January 3,
2017.
2. Mineral resources are not mineral
reserves and do not have
demonstrated economic viability.
All numbers have been rounded to
reflect the relative accuracy of
the estimate.
3. Reported at a contained metal value
cut-off grade of CAD $185.00/t
(US$0.80=C$1) using consensus long
term metal prices (US$) and
recoveries developed for the nearby
Bellekeno deposit (Ag US$20.00/oz,
recovery 96%; Pb US$0.95/lb,
recovery 97%; Zn US$1.00/lb,
recovery 88%; Au US$1,300/oz,
recovery 72%).
4. Ag grades capped at 1,500 grams per
tonne ("g/t"); Zn capped at 9.5%;
Pb capped at 9% for the Bermingham
vein.
5. Ag grades capped at 11,000 g/t, Zn
capped at 7% and Pb capped at 20%
for the Bear Vein.
6. Ag grades capped at 3,000 g/t, Zn
capped at 9% and Pb capped at 30%
for the Bermingham Footwall vein.
7. Ag grades capped at 2,000, Zn capped
at 12% and Pb capped at 20% for the
West Dipper vein.
8. Table numbers may not add up due to
rounding.
Alexco President and Chief Executive Officer Clynt Nauman said, "The majority of the tonnage in the Bermingham deposit resides in the Arctic Zone. The northeastern extension of the Arctic Zone is defined by higher grade mineralization primarily in the closely juxtaposed Bear and West Dipper veins which on a consolidated basis (Appendix II) contain:
-- Indicated: 169,000 tonnes of 1,296 g/t silver, including 49,000 tonnes
of 2,543 g/t silver in the Bear vein.
-- Inferred: 72,000 tonnes of 593 g/t silver, including 4,000 tonnes of
1,818 g/t silver in the West Dipper vein.
Importantly, the veins and structures hosting this higher grade mineralization remain largely untested at depth. Finally, the discovery of a West Dipper vein set is particularly significant as both Boyle (1965) and Cathro (2006), pre-eminent geologists in the understanding of the geology of the KHSD, document the importance of shallower west dipping conjugate veins in the highest grade deposits in the district, most notably the nearby historical Elsa Mine. Looked at in total, the Bermingham deposit is emerging as a fairly large discovery, now characterized by more than 850,000 tonnes of indicated mineralization with an average silver grade approximately 25% higher than our Flame & Moth deposit."
Bermingham Deposit
Alexco conducted surface diamond drilling programs at Bermingham between 2009 and 2012 and again in 2014, with 61 holes drilled totaling 18,699 m. In 2015 and 2016 a further 19,977 m were drilled in 58 holes such that the entire data base at Bermingham now includes 119 holes for 38,676 m. All of this drilling was inclined northwesterly except for five holes (1,729 m) drilled southeasterly (parallel to the dominant vein dip direction) to identify and define the newly discovered west dipping conjugate vein set (the "West Dipper"). The resource estimation presented here incorporates the results from 275 composite assay intervals from 93 holes compared with those from 38 holes that were used in the April 2015 estimation.
Drilling in 2016 was focused on obtaining resource definition intercept spacings, particularly on the high grade Bear vein that ranges in true width up to 6.4 m at 182 ounce per tonne ("oz/t") silver (K-14-0537) and in grade up to 240 oz/t silver over 5.0 m true width (K-15-0580) and that has now been traced over a down-plunge extent of 270 m (over a vertical range of 230 m) and a plunge width of up to 100 m, with the top of the deposit in this vicinity being approximately 160 m below surface.
Interpretation of the consolidated drilling results has identified four mineralized veins that splay and change orientation along strike within the north-northeast striking and moderately to steeply southeast dipping Bermingham vein-fault structural corridor. This structural corridor is divided into the Etta Zone that lies in the hangingwall of the post-mineral Mastiff Fault and the Artic Zone in its footwall. The main through-going Bermingham and Bermingham Footwall veins occur in both the Etta and Arctic zones, while the Bear vein and associated newly identified conjugate West Dipper vein set occur only within the Arctic Zone in a position controlled by a flexure in the Bermingham vein-fault. The resource estimate update incorporates both the Bermingham and Bermingham Footwall vein previously reported within the Etta and Arctic zones, with a significant extension of the Arctic zone within the known veins and the two newly discovered veins.
The Bermingham deposit veins typically occur in structurally complex zones as discrete veins 0.5 m to more than 5 m wide with a five to ten meters wide structurally damaged vein margin. The discrete veins exhibit heavily-disseminated to massive mineralization while mineralization in the vein margins is commonly more stringer-like. The Bermingham resource has been separately estimated in terms of these mineralization categories as shown in Appendix II. Regardless of category, higher grade Bermingham mineralization is generally characterized by the presence of a complex silver bearing mineral assemblage including pyrargyrite (ruby silver), freibergite, argentiferous galena, stephanite, polybasite and wire silver in a dominantly sideritic gangue.
Metallurgical test work has demonstrated that silver and lead recoveries are expected to be in the range of 94% to 96%, while producing a lead concentrate grading in excess of 60% lead and 30,000 g/t silver. Zinc recovery is predicted to be in the range of 70% to 75% to a zinc concentrate grading in excess of 50% zinc.
The Bermingham mineral resource was estimated using 3-D Gemcom block modeling software in multiple passes in three by three by three meter blocks by ordinary kriging. Grade estimates were based on capped one meter composited assay data. Capping levels were set to 1,500 g/t for silver for the Bermingham vein, 3,000 g/t for the Footwall vein, 2,000 for the West Dipper Vein and 11,000 for the Bear vein; lead was capped at 9.5% for the Bermingham vein, 30% for the Footwall vein, 20% for the West Dipper Vein and at 30% for the Bear vein. Zinc was capped at 9% for the Bermingham and Footwall veins, at 7% for the Bear vein and at 12% for the West Dipper vein. Blocks were classified as indicated mineral resources if at least three drill holes and five composites were found within the first pass search ellipse. All other interpolated blocks were classified as inferred mineral resources.
A summary of all of Alexco's KHSD mineral resources incorporating the updated mineral resource estimates for Bermingham are appended to this release, and are available for review on the Company's website at www.alexcoresource.com.
Technical Report Update, 2017 Exploration Plans
In March, 2017, Alexco plans to publish an updated Preliminary Economic Assessment including technical support for the expanded Bermingham resource estimation presented here, as well as updated mine plans for the Flame & Moth, Bellekeno and Lucky Queen deposits and a preliminary mine plan for potentially mineable tonnes from the Bermingham deposit.
Alexco is presently planning a minimum 5,000 m surface diamond drilling program at Bermingham in 2017 primarily to expand high grade mineralization down-plunge into an area where, as an outcome of 2016 drilling, the Bermingham vein system is observed to closely imitate the large-scale looping vein geometries observed at the largest past-producing mine in the district, the Hector-Calumet mine (96 million ounces of silver). Subject to permitting requirements, the Company is also contemplating an underground exploration program at Bermingham to infill and upgrade the higher grade areas in the shallower portion of the resource.
References
Boyle, R.W., 1965.
"Geology, Geochemistry, and Origin of the Lead-Zinc-Silver Deposits of the Keno Hill - Galena Hill Area, Yukon Territory". Bulletin 111, Geological Survey of Canada.
Cathro, R.J., 2006.
"The History and Geology of the Keno Hill Silver Camp Yukon Territory." Geoscience Canada, Volume 33, Number 3.
Qualified Persons
SRK prepared the updated mineral resource estimate for the Bermingham deposit, and is independent of Alexco for purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). The Bermingham mineral resource estimate was completed by Dr. Gilles Arseneau, P.Geo., Associate Consultant (Resource Geology) with SRK, whom is Qualified Persons as defined by NI 43-101. Dr. Arseneau has reviewed, verified and approved the contents of this news release relating to the mineral resource estimate for the Bermingham deposit. All mineral resources 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 with NI 43-101 guidelines.
The metallurgical testing information in this news release has been reviewed and verified by Jeffrey B. Austin P. Eng., President International Metallurgical and Environmental Inc. and a Qualified Person as defined by NI 43-101.
The disclosure of all other scientific and technical information in this news release regarding projects on Alexco's mineral properties has been reviewed and approved by Alan McOnie, FAusIMM, Alexco's Vice President, Exploration and a Qualified Person as defined by NI 43-101.
The drill data and sampling protocols have been reviewed, verified and compiled by Alexco's geologic staff since 2011 under the supervision of Alan McOnie, Vice President, Exploration for Alexco and a Qualified Person as defined by National Instrument 43-101 and previously by Stan Dodd, Vice President, Exploration for Alexco and a Qualified Person as defined by National Instrument 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 delivered to the assay lab. Drill core samples included in the updated resource estimation were shipped to ALS Minerals Labs at Whitehorse, Yukon Territory for preparation, with fire assay, multi-element ICP analyses and ore grade over limits completed at the ALS Minerals facility in North Vancouver, British Columbia.
About Alexco
Alexco Resource Corp. owns the Bellekeno silver mine, one of several mineral properties held by Alexco which encompass substantially all of the historical KHSD 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 the Company's anticipated results and developments in the Company'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 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, the Company has applied several material assumptions, including, but not limited to, the assumption 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. The Company 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.
APPENDIX I - Summary of Resources
The following table sets forth the estimated resources for Alexco's mineral properties within the Keno Hill Silver District:
Category1,2,11 Property Tonnes Ag Au Pb Zn Contained
(g/t) (g/t) (%) Ag (oz)
(%)
--- ---
Indicated Bellekeno Deposit3&4 262,000 585 n/a 3.5% 5.3% 4,927,000
Lucky Queen Deposit3&5 124,000 1,227 0.2 2.6% 1.7% 4,892,000
Flame & Moth Deposit3&6 1,638,000 506 0.4 1.9% 5.4% 26,650,000
Onek3&7 654,000 200 0.6 1.3% 12.3% 4,205,000
Bermingham3&8 858,000 628 0.1 2.4% 1.7% 17,318,000
Total Indicated - Sub-
Surface 3,536,000 510 n/a 2.1% 5.6% 57,992,000
Elsa Tailings9 2,490,000 119 0.1 1.0% 0.7% 9,527,000
Total Indicated - All
Deposits 6,026,000 349 n/a 1.6% 3.6% 67,519,000
Inferred Bellekeno Deposit3&4 243,000 428 n/a 4.1% 5.1% 3,344,000
Lucky Queen Deposit3&5 150,000 571 0.2 1.4% 0.9% 2,754,000
Flame & Moth Deposit3&6 348,000 366 0.3 0.5% 4.4% 4,095,000
Onek3&7 234,000 134 0.4 1.2% 8.9% 1,008,000
Bermingham3&8 220,000 770 0.2 2.1% 2.2% 5,451,000
Total Inferred 1,027,000 433 n/a 1.8% 4.6% 16,652,000
Historical Silver King10
Resources -Proven, probable and
indicated 98,998 1,354 n/a 1.6% 0.1% 4,310,000
- Inferred 22,581 1,456 n/a 0.1% n/a 1,057,000
========== ====== ===== === === === =========
Notes:
1. All mineral resources 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 the
guidelines of NI 43-101.
2. Mineral resources are not
mineral reserves and do not
have demonstrated economic
viability. All numbers have
been rounded to reflect the
relative accuracy of the
estimates.
3. The Keno Hill Silver District is
comprised of five deposits:
Bellekeno, Lucky Queen and
Flame & Moth, Onek and
Bermingham, of which Bellekeno,
Lucky Queen and Flame & Moth
are incorporated into the
current mine plan outlined in
the technical report filed on
SEDAR dated December 10, 2014
entitled "Updated Preliminary
Economic Assessment for the
Keno Hill Silver District
Project - Phase 2, Yukon,
Canada". The mineral resource
estimates for the project are
supported by (a) disclosure in
the news release dated December
23, 2014 entitled "Alexco
Updates Positive Preliminary
Economic Assessment for
Expanded Silver Production from
Keno Hill Silver District,
Yukon"; and (b) a technical
report filed on SEDAR dated
December 10, 2014 entitled
"Updated Preliminary Economic
Assessment for the Keno Hill
Silver District Project - Phase
2, Yukon, Canada". The mineral
resource estimates for the
Flame & Moth deposit is further
supported by disclosure in the
news release dated April 30,
2015 entitled "Alexco Announces
Indicated Silver Resource
Estimate Increases of 17% at
Flame & Moth and 26% at
Bermingham, Resulting in a 10%
Increase Overall for Keno Hill
Silver District".
4. The resource estimates for the
Bellekeno deposit are based on
a geologic resource estimate
having an effective date of
September 30, 2012. The
Bellekeno indicated resources
are as at September 30, 2013,
and reflect the geologic
resource less estimated
subsequent depletion from mine
production.
5. The mineral resource estimates
for the Lucky Queen deposit
have an effective date of July
27, 2011.
6. The mineral resource estimates
for the Flame & Moth deposit
have an effective date of April
28, 2015.
7. The mineral resource estimates
for Onek have an effective date
of October 15, 2014.
8. The mineral resource estimates
for Bermingham have an
effective date of January 3,
2017.
9. The mineral resource estimate
for the Elsa Tailings has an
effective date of April 22,
2010, and is supported by the
technical report dated June 16,
2010 entitled "Mineral Resource
Estimation, Elsa Tailings
Project, Yukon, Canada".
10. Historical mineral resources for
Silver King are supported by
disclosure in the news release
dated December 23, 2014
entitled "Alexco Updates
Positive Preliminary Economic
Assessment for Expanded Silver
Production from Keno Hill
Silver District, Yukon"
11. The disclosure regarding the
summary of estimated mineral
resources for Alexco's mineral
properties within the Keno Hill
District has been reviewed and
approved by Scott Smith,
P.Eng., former Bellekeno Mine
Manager and a Qualified Person
as defined by NI 43-101.
APPENDIX II - Bermingham Resource Estimate by Vein and Vein Margin
Deposit Zone Class Tonnes Ag Pb Zn Au Ag
(g/t) (%) (%) (g/t) (troy ounces)
--- --- --- --- --- ----- -------------
Bermingham Bermingham Indicated 220,000 432 1.9 1.7 0.13 3,062,000
Vein
---
Inferred 23,000 583 2.7 2.8 0.16 424,000
-------- ------ --- --- --- ---- -------
Bermingham Indicated 152,000 332 1.5 1.5 0.07 1,621,000
Vein Margin
---
Inferred 26,000 356 1.3 1.7 0.09 303,000
-------- ------ --- --- --- ---- -------
Bear Vein Indicated 49,000 2,543 7.5 2.7 0.37 4,017,000
--------- ------ ----- --- --- --- ----
Inferred 25,000 550 2.9 1.9 0.18 447,000
-------- ------ --- --- --- ---- -------
Bear Vein Indicated 99,000 794 3.0 1.3 0.14 2,515,000
Margin
---
Inferred 43,000 505 2.5 0.7 0.11 699,000
-------- ------ --- --- --- ---- -------
Bermingham Indicated 167,000 657 3.0 1.7 0.16 3,536,000
Footwall
Vein
---
Inferred 62,000 1,407 1.3 3.5 0.19 2,815,000
-------- ------ ----- --- --- ---- ---------
Bermingham Indicated 150,000 430 1.3 1.5 0.06 2,067,000
Footwall
Vein Margin
---
Inferred 36,000 442 1.1 1.4 0.09 518,000
-------- ------ --- --- --- ---- -------
West-Dipper Indicated 13,000 932 3.4 2.8 0.15 388,000
Vein
---
Inferred 4,000 1,818 17.4 8.3 0.55 244,000
-------- ----- ----- ---- --- ---- -------
West-Dipper Indicated 8,000 421 1.0 1.7 0.06 115,000
Vein Margin
---
Inferred - - - - - -
-------- --- --- --- --- --- ---
Total All Veins Indicated 858,000 628 2.4 1.7 0.13 17,321,000
and Vein
Margins
---
Inferred 220,000 770 2.1 2.2 0.15 5,450,000
-------- ------- --- --- --- ---- ---------
Notes:
------
1. The effective date of this mineral
resource estimate is January 3,
2017.
2. Mineral resources are not mineral
reserves and do not have
demonstrated economic viability.
All numbers have been rounded to
reflect the relative accuracy of
the estimates.
3. Reported at a contained metal value
cut-off grade of CAD $185.00/t
(US$0.80=C$1) using consensus long
term metal prices (US$) and
recoveries developed for the nearby
Bellekeno deposit (Ag US$20.00/oz,
recovery 96%; Pb US$0.95/lb,
recovery 97%; Zn US$1.00/lb,
recovery 88%; Au US$1,300/oz,
recovery 72%).
4. Ag grades capped at 1,500 grams per
tonne ("g/t"); Zn capped at 9.5%;
Pb capped at 9% for the Bermingham
vein.
5. Ag grades capped at 11,000 g/t, Zn
capped at 7% and Pb capped at 20%
for the Bear Vein.
6. Ag grades capped at 3,000 g/t, Zn
capped at 9% and Pb capped at 30%
for the Bermingham Footwall vein.
7. Ag grades capped at 2,000, Zn capped
at 12% and Pb capped at 20% for the
West Dipper vein.
8. Table numbers may not add up due to
rounding.
SOURCE Alexco Resource Corp.
