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Alexco cuts high-grade silver at Keno Hill

Vancouver-based explorer Alexco Resources (TSX:AXR) has completed an 8,600m resource infill and extension drilling campaign at the Bermingham deposit, part of its Keno Hill Silver District project, in Canada’s Yukon Territory.
Alexco cuts high-grade silver at Keno Hill Alexco cuts high-grade silver at Keno Hill Alexco cuts high-grade silver at Keno Hill Alexco cuts high-grade silver at Keno Hill Alexco cuts high-grade silver at Keno Hill

The most recent results continue to confirm continuity of significant high-grade silver mineralisation in each of the main mineralised vein zones at the Keno Hill Silver District, Yukon Territory

The 2018 programme comprised 24 holes drilled from the underground exploration decline and 12 completed from surface.

The most recent results continued to confirm continuity of significant high-grade silver mineralisation in each of the main mineralised vein zones. Intercepts on the Bear Vein included 4.29m true width at 3,605 grams per tonne (or 115.91ozpt) silver in hole BMUG18-018; 5.99m grading 1,013gpt silver in hole BMUG18-022; and 0.98m at 6,952gpt silver in hole K-18-0702.

In the Bermingham Footwall Vein, Alexco cut 3.96m at 3,348gpt silver in hole BMUG18-016, and 2.27m at 4,480gpt silver in hole K-18-0702. The Main Vein included 4.1m at 1,575gpt silver in hole BMUG18-019; and intercepts on the West Dipping Vein included 1.37m at 1,372gpt in hole BMUG18-016, 2.49m at 1,253gpt in hole BMUG18-017, and 1.32m at 1,982gpt silver in hole BMUG-024. All intercepts were reported as true widths.

"These results serve to reconfirm our confidence in the continuity and tenor of silver mineralisation in what now appears to be one of the larger silver mineralising systems in the Keno Hill Silver District," Alexco chairman and CEO Clynt Nauman says.

With these results in hand, Alexco will immediately update the Bermingham deposit resource estimate before October. The company expects the closer-spaced drilling to convert some of the indicated resource to reserves in the upcoming prefeasibility study, which is scheduled for release in October.

The existing Bermingham resource comprises an indicated 858,000t averaging 628gpt silver, containing 17.3 million indicated ounces of silver.

The current January 2017 preliminary economic assessment on the Keno Hill Silver District project envisions the sequenced development of four high-grade silver deposits over an eight-year mine life, producing more than one million tonnes with an average grade of 843gpt silver, 3.3% lead and 4.6% zinc.

Alexco's equity has lost about 30% in the past 12 months, closing 2.19% in the red Monday at C$1.34 a share, which gives the company a market valuation of about $144.7 million.