Based on these numbers it looks like after 35 years it's going to be a great mine again, way to go Alexco! Way to go Clynt.
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 |