Mining News: Northern Neighbors: Alexco expands Keno drilling; preps to resume silver mining

Alexco Resource Corp. Aug. 10 reported plans to expand its 2016 summer drill program at the Bermingham deposit at its Keno Hill Silver District to 14,000 meters. The company originally planned to drill 8,000 meters but has now added 6,000 meters to follow up on high-grade silver results identified at Bermingham over the past couple of years. The expanded exploration program is budgeted to cost C$3.3 million and is primarily funded with C$3 million in flow-through funds raised late in 2015. The surface drill program is expected to be complete in early October. The company is also investing additional funds to gather important geotechnical and hydrogeological information, as well as undertake a preliminary metallurgical program to test the Bermingham mineralization. As of Aug. 10, Alexco had drilled 25 holes for a total of 7,708 meters at Bermingham. Interim results from this drilling are expected by mid-September with results for the complete program slated for late October. Results from this work will provide the basis to complete a new Bermingham resource estimate to be included in an updated preliminary economic assessment that is expected to include revised and optimized development and mining plans for Alexco’s Flame & Moth, Bellekeno and Lucky Queen deposits. Preparation for the installation of an underground portal at the Flame & Moth mine, along with establishing the necessary surface infrastructure to drive the first 20 meters of the production ramp, began in July. This will allow resumption of development activities to begin at full-scale in the future. This ramp will ultimately be driven some 750 meters to the upper production levels of the Flame & Moth silver deposit. Based on a PEA updated at the end of 2014, the Flame & Moth deposit 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.

-Shane Lasley