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Alexco Resource Corp. (NYSE American: AXU) (TSX: AXU) reports financial results for the quarter ended March 31, 2022. The Company also provides an update on capital development projects, scale-up of mining operations, and exploration activities at Keno Hill.


  • Mining Operations – Ramp-up of mining and milling operations continued in Q1 2022:
    • At the Bermingham mine, longhole stoping of ore continued at the 1150 level. In Q1 2022, 4,575 ore tonnes were mined from the Bermingham mine, of which 1,666 ore tonnes were mined in March.
    • At the Flame & Moth mine, the primary ramp reached the first two ore access levels with initial cut and fill ore production achieved in January 2022. In Q1 2022, 3,517 ore tonnes were mined of which 1,972 ore tonnes were mined in March. In addition, in Q1 2022, a primary ventilation and secondary escape raise was completed and will be fully operational in Q2 2022, allowing for expanded activity underground as scheduled.
  • Exploration:
    • In May 2022, the Company intends to commence a 15,000 meter surface exploration drilling program primarily stepping out along favourable permissive structural and stratigraphic trends adjacent to and in the vicinity of the Bermingham deposit. This work will be focused to the west in the vicinity of the Coral Wigwam deposit, and to the northeast towards the Hector-Calumet deposit, as well as broader exploration drilling in other areas.
    • On January 18, 2022, the Company reported the expansion of the Bermingham Indicated Resource (see press release dated January 18, 2022, entitled “Alexco Reports 43% Expansion of Bermingham Indicated Resource to 47 Million Ounces of Silver at 939 Grams per Tonne; Remains Open”).
  • Other Activities Subsequent to Period End:
    • On April 13, 2022, the Company completed a non-brokered private placement offering of 7,473,495 common shares at a price of $1.75 per share, resulting in gross proceeds of $13,078,616.
    • On April 29, 2022, the Company sold to Victoria Gold Corp. (“Victoria”) all of its rights, benefits and interests in and to the remaining option consideration payable to Alexco by Banyan Gold Corp. under the option agreement with Banyan in exchange for 447,142 shares of Victoria. On May 4, 2022, the Victoria shares were sold for net proceeds of $6,000,000 after selling costs and commissions.


Key Performance Metrics


Operations Q1 2022 Q4 2021 ∆-Q4 vs Q1
Ore tonnes mined 8,092 4,996 62%
Ore tonnes milled 7,609 7,091 7%
Mill throughput (tonnes per operating day)1 317 253 25%
Ore tonnes stockpiled 1,849 1,366 35%
Underground development meters 81 195 (58%)
Head grade
     Silver (grams per tonne (“g/t”)) 357 547 (35%)
     Lead 1.1% 3.1% (65%)
     Zinc 2.4% 2.7% (11%)
     Silver 93% 96% (3%)
     Lead in lead concentrate 87% 90% (3%)
     Zinc in zinc concentrate 63% 62% 2%
Concentrate production and grades
     Lead concentrate produced (tonnes) 227 351 (35%)
          Silver grade (g/t) 10,369 10,179 2%
          Lead grade 33% 57% (42%)
     Zinc concentrate produced (tonnes) 247 240 3%
          Silver grade (g/t) 774 568 36%
          Zinc grade 47% 50% (6%)
Contained metal in concentrate produced
     Silver (ounces) 81,725 119,177 (31%)
     Lead (pounds) 165,086 436,877 (62%)
     Zinc (pounds) 255,515 262,897 (3%)

(expressed in thousands of Canadian dollars,
except per share amounts)

Q1 2022 Q4 2021
     Revenues – Mining operations 2,052 2,814
     Revenues – Reclamation management 744 453
     Operating Loss (6,251) (10,646)
     Cash and cash equivalents 5,637 9,933
     Net Working Capital2 (7,072) 1,389
     Adjusted Net Loss2 (5,704) (6,976)
     Net Income (Loss) (11,316) (9,069)
     Basic and diluted net income (loss) per common share (0.07) (0.06)
     Adjusted basic net loss per common share2 (0.04) (0.05)
     Adjusted diluted net loss per common share2 (0.04) (0.04)
     Total assets3 212,461 210,362
     Total non-current liabilities 6,559 7,437
1. Mill throughput (tonnes per operating day) is based on the number of days that the mill was operational during the period. The mill was operational for 24 days and 36 days during Q1 2022 and Q1 2021, respectively.
2. See “Non-GAAP Measures” in the MD&A for the three month period ended March 31, 2022.
3. Total assets increased primarily due to expenditures on mineral properties, plant and equipment.


“We have seen improvements and better results recently with our underground activities at Keno Hill,” said Clynt Nauman, Chairman and CEO of Alexco, “but with that said, we remain below where we need to be for development rates, equipment availability, and ore extraction rates. In terms of providing a formal outlook for the balance of 2022, the Keno Hill operation needs an additional period of time to confirm improvement in supply chain efficiencies and mechanical availability of underground equipment, which is the primary driver for accelerated ramp up progress. The Company is evaluating a number of production and operating scenarios keying off supply line risk and availability of maintenance technicians as the basis for forecasting underground development rates with the objective of providing further clarity and confidence on reaching our targeted 400 tonnes per day mill throughput. Therefore, while the Company had previously anticipated providing formal guidance for the balance of 2022, we are deferring such guidance until such time when we can confidently guide the market. I am hopeful that with another several weeks of performance under our belts, we will be in a much better position to update the market.”


Qualified Persons


The disclosure in this news release of scientific and technical information regarding exploration projects on Alexco’s mineral properties has been reviewed and approved by Alan McOnie, FAusIMM, while that regarding mine development and operations has been reviewed and approved by Sebastien D. Tolgyesi, P.Eng., P.Geo., Keno Hill Operations Manager, both of whom are Qualified Persons as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.


About Alexco


Alexco is a Canadian primary silver company that owns and operates the majority of the historic Keno Hill Silver District, in Canada’s Yukon Territory, one of the highest-grade silver mines in the world. Alexco started concentrate production and shipments in 2021 and is currently advancing Keno Hill toward steady state production. Upon reaching commercial production, Keno Hill is expected to produce an average of approximately 4.4 million ounces of silver per year contained in high quality lead/silver and zinc concentrates. Keno Hill retains significant potential to grow and Alexco has a long history of expanding the operation’s mineral resources through successful exploration.


Posted May 13, 2022

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