Alexco to explore for high-grade silver mineralization at Keno Hill
Last updated 6/12/2016 at Noon
Alexco Resource Corp. June 1 reported the start of site preparations for an initial 8,000-meter surface drilling program to expand upon the high-grade silver discovery at its Bermingham prospect in the Keno Hill Silver District, Yukon Territory.
In addition to exploration, the company will carry out initial development to collar and establish the underground ramp portal and infrastructure necessary for future development of the Flame & Moth deposit at Keno Hill.
The Bermingham target is a blind, steeply plunging zone of high-grade mineralization about 160 meters from surface where one hole in 2015 cut five meters averaging 240 ounces per metric ton silver.
This zone is estimated to extend roughly 140 meters down plunge, 40 meters along strike and range from 0.4-6.4 meters thick.
The discovery zone is located immediately to the northeast and adjacent to previously outlined Bermingham silver mineralization with 377,000 metric tons of indicated resource averaging 430 g/t (5.2 million oz.) silver.
A minimum of C$3 million will be spent to initially drill 25 to 30 holes to define the limits of Bermingham.
Up to an additional C$500,000 will be spent to test metallurgical response of the high-grade mineralization at Bermingham, and to gather important geotechnical and hydrology information to support an updated Bermingham resource estimate.
Results from the 2016 exploration program will provide the basis to complete a new Bermingham resource estimate to be included in an updated preliminary economic assessment that will include revised and optimized development and mining plans for Alexco's Flame & Moth, Bellekeno and Lucky Queen deposits.
Initial work to establish a portal for the Flame & Moth deposit will begin in late June.
This work will include provision of electrical, air and mine water services to the portal to support development of an initial 25 meters of the Flame & Moth production ramp.
This ramp will ultimately be driven some 460 additional meters to the upper production levels of Flame & Moth, which hosts roughly 585,000 metric tons of potentially mineable material, grading 693 g/t silver, 5.35 percent zinc, 2.19 percent lead and 0.52 g/t gold.
The potentially mineable tons and grade at Flame & Moth will be revised in the updated PEA due by the end of the year.
With roughly C$18 million of unrestricted cash, the company said it is funded to complete the currently planned 2016 work programs at Keno Hill.