Alexco adds 12.1M oz silver to Bermingham

Alexco Resource Corp. Jan. 3 reported a major expansion of the Bermingham deposit at its Keno Hill Silver District in the Yukon.

Bermingham now hosts 868,000 metric tons of indicated resource averaging 628 grams per metric tons silver. The 17.3 million ounces of contained silver is more than a 300 percent expansion from 5.2 million oz in the previous estimate.

Additionally, Bermingham's inferred resource has swelled from 700,000 to 5.5 million oz. of contained silver.

As a result of the Bermingham expansion, the district-wide indicated mineral resources at Alexco's Keno Hill project increased roughly 22 percent, from 55.4 million to 67.5 million oz. of contained silver.

The Bermingham deposit comprises the Etta zone and Arctic, a fault separated zone to the east.

Exploration over the past two years has focused on extending Arctic to the northeast.

"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," explained Alexco President and CEO Clynt Nauman.

The Bear and West Dipper veins host 169,000 metric tons of indicated resource averaging 1,296 g/t silver. These higher grade veins account for 7 million ounces of the overall Bermingham indicated resource.

"Looked at it in total, the Bermingham deposit is emerging as a fairly large discovery, now characterized by more than 850,000 tonnes (metric tons) of indicated mineralization with an average silver grade approximately 25 percent higher than our Flame & Moth deposit," Nauman added.

Alexco plans to publish an updated preliminary economic assessment that includes the expanded Bermingham resource, as well as updated mine plans for the Flame & Moth, Bellekeno and Lucky Queen deposits and a preliminary mine plan for the Bermingham deposit.

The company is also planning at least 5,000 meters of surface drilling program at Bermingham in 2017, primarily to expand high grade mineralization down-plunge into an area where the Bermingham vein system is observed to closely imitate the large-scale looping vein geometries observed at the 96-million-ounce Hector-Calumet Mine, the largest past-producing silver mine in the Keno District.

Subject to permitting requirements, Alexco is also considering an underground drill program to infill and upgrade higher grade areas in the shallower portion of the Bermingham resource.

-SHANE LASLEY