The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
AXR: TSX/AXU/NYSE-A
President and CEO: Clynton R. Nauman
Chief Operating Officer: Brad A. Thrall
Vice President, Exploration: Stan Dodd, M.Sc.
Alexco Resource Corp., founded in 2004 in British Columbia, is a precious metals exploration company with a silver focus and a growing environmental services business.
After completing an initial public offering in January 2006 on the TSX, Alexco has successfully established itself on two fronts.
The company and two subsidiaries, Access Mining Consultants Ltd. and Alexco Resource US Corp., provide mine-related environmental consulting services, reclamation and mine closure services and environmental remediation technologies to both government and industry clients.
Alexco also conducts exploration programs at abandoned mine sites and elsewhere.
Alexco's primary exploration objective currently is to unlock value in the historic silver-rich Keno Hill district, which covers about 23,350 hectares, or 56,274 acres, in central Yukon Territory.
Since beginning construction of the Bellekeno underground mine and flotation mill in November 2009 and through June 30, Alexco has incurred about C$18.8 million, or 45 percent of the C$41.5 million in construction and development capital estimated to achieve commercial production.
Exploration activity in the district, initiated in April 2010, is continuing with the staged increase to five drill rigs (four surface and one underground) on site and 6,500 meters of drilling completed by early July.
The planned 2010 Keno Hill exploration program includes 25,000 to 30,000 meters of surface and core drilling designed to define and expand silver mineralization and resources at Bellekeno, to confirm and expand historical resources at Silver King, Lucky Queen, Onek and to test other priority targets throughout the district.
Initial drilling activity focused on the Silver King deposit where 4,440 meters of drilling has indicated modest extension of silver mineralization down from prior drilling, and the Onek deposit where silver-rich mineralization was encountered in a series of shallow drill holes covering 1,660 meters.
At the Flame and Moth deposits, construction work in the vicinity of the new mill uncovered silver mineralization assaying up to 1,428 g/t silver (45.8 oz/t) over 2 meters related to large-scale structures in the area.
Drilling has been initiated to test this target.
Surface drilling in July and August focused on resource definition at the Lucky Queen deposits, upper-level targets at Bellekeno and multiple targets on Galena Hill, where recent geologic work indicates favorable structural and stratigraphic patterns consistent with previously mined ore shoots in the area.
At Bellekeno, cross-cut development has exposed up to 3.30 meters of 1,386 grams per metric ton (40.4 ounces per ton) silver, 18.1 percent lead and 9.6 percent zinc located about 94 meters southwest along strike from the 7500 No. 1 cross cut where assays up to 57.3 oz/t silver over 66.04 meters were previously reported.
Underground drilling at Bellekeno totaled 1,690 meters by July.
The drilling focused on the lower Bellekeno East Zone inferred resource where drill hole BKUD10-1184 intersected 3.07 meters grading 27.33 percent zinc, 1.62 g/t gold, 138 g/t (4.0 ounces/t) silver and 0.76 percent lead from 228.05 meters to 231.12 meters.
In late August, Alexco received a Type A Water Use License, the final permit required for the Bellekeno mine and mill project, and is expected begin production in October.
Once in production, the Bellekeno mine will operate at a rate of 250 t/d, producing up to 12,000 tons of lead-silver concentrate (2.8 million ounces of silver) and 8,400 tons of zinc concentrate annually.
Initial silver grades in 2010 and 2011 are expected to average about 1,000 g/t.
The mine and mill operations will employ some 120 workers and are expected to directly invest more than C$25 million annually in Yukon Territory.
Cash and short-term deposits: C$30.21 million (at March 31, 2009)
Working capital: C$21.6 million (at March 31, 2010)
Market capitalization: C$229.77 million (Sept. 10, 2010)
200 Granville St. Suite 1150
Vancouver, BC Canada V6C 1S4
Tel: 604 633-4888 Fax: 604 633-4887
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