Alexco Resource Corp. T.AXU

Clynt Nauman interview January 29th

[mattbigham]

I think you'll want to read about Bermingham.

30:00
Jan.29
Mining Stock Weekly

We then turn to @alexcoresource
CEO Clynt Nauman to provide latest on Keno Hill #silver project in Yukon.

https://twitter.com/TrevAHall/status/1355166238696230913


Very confident we are on the right side of the equation.
Huge amount of money being poured into the economy and we just don't see any way how that can't affect the value of the US dollar.
Gold and silver are traditional areas of preservation of wealth. Seeing a significant increase into wealth preservation assets.
Silver is like gold on steroids-highly leveraged.Industrial and wealth components.
I don't have a sophisticated thesis.Silver prices are quite robust at the present time.We expect them to climb even further and
we think it is a long term secular move and we at Alexco/Keno Hill are particularly well positioned to take advantage of this strength in the market.
That being said,we're dealing with a very high-grade asset here and we're being very careful to build and put it into production so it will operate
through a cycle-a whole silver cycle-so we're not dependent on high silver prices.
That's basically my view.

What we're trying to do is build a business.
At the end of the day we want to build a larger sustainable business that our employees can rely upon that supports the community around us and
is established as an entity people can look to and rely upon for good,straightforward community work and advancement.

We initiated commissioning of the mill in Q4 of last year.The feed for the mill is being provided for by the Belkeno mine.It was always planned that
that mine would supply the initial tonnes to commission and feed into the mill.
We got the first concentrate shipment off early in January and we are shipping concentrate as we speak here.
The rampup is going to be a little slower because of COVID restrictions imposed upon us.
That metal will be a commissioning type of a process well into the second quarter.
We're running maybe two or three months behind our original plan but there are issues beyond our control.
We are quite proud of our employees and worforce operating under very strict protocols to live and work.
Employees continue to do a great job given the circumstances.
Long story short-nothing has changed.The timeline is a little more stretched out.Everything is moving forward pretty,pretty well-given the circumstances.

Commissioning phase we are working two weeks on and two weeks off and that is a workforce related issue more than anything else.
Material (concentrate) is going onto the water every Monday /Tuesday of every week.

We still believe silver production is going to be fairly significant-2.5 or three million oz is nothing to be sniffed at.
Its a slowdown but we're still producing so its moving along at the present time without any significant change in our interim plans.
We have not been surprised.Let's put it that way.
We have to keep our people safe.Paramount.Uppermost in our minds-as well as the communities in which we work.

BERMINGHAM Deep drill results.
3,583 g/t over 8.5 m true width - headline grade.

Drilling deep holes,looking for deeper extensions of the Bermingham ore body which contains 30-33 million oz indicated,resource grade is 900 grams.
The reserve grade is about the same-its a very high grade ore deposit.
It has geological characteristics of -we thought-of something that could be/should be bigger than what we were seeing.
The 2020 exploration simply confirmed that fact.
It drew relatively thick sections-of very high grade material.Robust grade material over a length of half a kilometre ,about 150 metres below the established
deposit/ore reserve.That's a significant discovery at Keno Hill.
The holes drilled are 6-7m thick.The grades are on average 70-75 ounces per tonne silver.Those grades are twice the grade that we are seeing in the shallower
deposit already going into production.
Qualified by the fact that it's speculative.These holes are 100 feet apart.No guarantee that they're going to be continuous.
I can tell you from a geological perspective that given our knowledge of this district this looks like a very promising discovery.
So,then we find ourselves faced with this point ,that you know,that we could have a significant number of ounces down here.I've been quite bullish in saying that
If there are the number of ounces down here that we could speculate might be present then there is enough ounces to strategically change our view on what Keno Hill is.
In other words,Bermingham could be a much bigger deposit.The largest deposit in this district historically was 90-95 million ounces.This Bermingham discovery is by
coincidence right next door and it has all the earmarks of a deposit that is going to be much larger.
If that's the case,the whole......the whole sort of head space that we're in of a 400-500 tpd / 7-8 year mining operation is simply going to be superceded by this discovery.
So.then the question arises: Do we want to know about that now or do we want to know about that later?
I've also been fortcoming in saying that no matter what we finf here its not going to change the mine plan.
The mine plan at BERMINGHAM is to get into those high grade areas and mine them.Nothing is going to change there.....but when you start looking down the road 5,6,7 years
at Keno Hill a discovery like this very well could change the long term view of the district.
It was our decision that we would rather know what type of a resource,how many oz do we have here sooner,rather than later.
We could have waited til we got underground and drilled this thing from underground.We decided to drill it from the surface.They're gonna be long holes and there's a lot of them
in order to close down the spacing so we have enough confidence to put this discovery into a resource category -indicated resources-and its going to cost a significant amount of money..
8-9 million dollars.
That was the basis of our recent financing.
With the slower ramp up at Keno Hill the working capital we need to have needs to be maintained,we did not want to jeopardise that.We wanted to be sure if there were another surprise,
God help us, on the pandemic side,that we could continue to incrementally move forward.That was the reason we did that financing.That will allow us to pull the trigger on this
new exploration program starting here in the 4-6 weeks (now 1-3 weeks) and by the fourth quarter of this year that we will be in a position to restate the resources on this property,
including this new discovery,assuming that exploration is successful.

I'm tired of typing so the remaining 7.5 minutes will now just be highlights.

Financing: Trust me,it was the right thing ,it was the right thing to do.
Investors saw the potential for this type of thing to be-I don't want to use the word game changer-but it is going to change people's perception of Keno Hill,assuming that the exploration
program is successful.
The other thing is this discovery is essentially within a stone's throw from the existing infrastructure we are putting in at Bermingham so its an additional incentive to know what we've here.
Understand that now rather than later.

The key here is getting Keno into production and a cashflow generating opportunity.
This business needs to survive off the back of its own cashflow.


I don't want to sort of overplay it but I have been kicking around Keno Hill for quite a while.
I'm kind of an exciteable person and this has created a lot of excitement in my mind. There will be a lot of holes that are going to be drilled in this discovery to try and figure out
what it is so...and I fully expect that some of those holes are going to be pretty,pretty,pretty impressive.

Presenter: Keno Hill is not only the Yukon's next great mine...... but it really is North America's next great silver mine and that is a HUUUUUGE thing to carry around.Right?

Clynt: Yeah.  We will be the only primary silver producer in Canada.And its in a jurisdiction where we get to keep the benefits of our margin.It has a jurisdictional premium attached to it,in my book.
We wouldn't want to have....I'd much prefer to have this type of deposit or these types of deposits in a tier one jurisdiction than maybe some other places in the world.
We're pretty happy to be where we're at.

[RuudinFrance]

Thanks for the effort Matt. Exiting news.

[vobarze]

Very interesting an promising Interview, thank you Matt for showing us. I like this stock best among all the silver miners.

[touareg]

I second the thanks to Matt for the excellent posts. Alexco is, in my opinion, a screaming buy at these levels. Defnitely not gatting the attention it deserves.. I think many new silver investors do not see much further than which ever silver stock is currenty getting momentum.. very much under the radar currently which is handy for accumulating but surely not long before Alexco has its day! I