Alexco Resource Corp. (TSX:AXR)(NYSE MKT:AXU) released a new, updated mineral resource estimate for the Flame & Moth discovery within the Keno Hill Silver District in Canada’s Yukon Territory, substantially increasing its previously estimated indicated silver resource. Since publishing the initial resource estimate (see news release dated June 28, 2012 entitled “Alexco Announces Initial Resource Estimates for Flame & Moth and Bermingham”), Alexco has drilled 8,752 meters in 43 holes to expand the Flame & Moth indicated silver resource from 11.1 million ounces to 22.9 million ounces, while increasing the indicated resource grade 14% to 516 grams per tonne (gpt), or 16.6 ounces per ton (opt) silver.
The updated resource estimate is summarized as follows:
Class Silver Gold Lead Zinc (Troy
Deposit (1,2,3) Tonnes (gpt) (gpt) (%) (%) ounces)
& Moth(4) Indicated 1,378,000 516 0.42 1.72 5.70 22,859,000
Inferred 107,000 313 0.27 0.86 4.21 1,081,000
1. The effective date of these mineral resource estimates is January 30,
2. Mineral resources are not mineral reserves and do not have demonstrated
economic viability. All numbers have been rounded to reflect the
relative accuracy of the estimates.
3. Reported at a contained metal value cut-off grade of CAD $185.00/t (0.96
USD = 1 CAD) using consensus long term metal prices and recoveries
developed for the nearby Bellekeno deposit (silver US$24.00/oz, recovery
96%; lead US$0.85/lb, recovery 97%; zinc US$0.95/lb, recovery 88%; gold
US$1,400/oz, recovery 72%).
4. Silver grades capped at 3,000 gpt; lead capped at 15%; zinc capped at
20%; gold grades not capped.
The updated resource estimate now incorporates a total of 21,245 meters of drilling that has been completed since 2010, and provides an 82% increase in indicated tonnes to approximately 1.4 million and a 14% increase in indicated resource grade over that of the initial Flame & Moth estimated resource.
Alexco President and Chief Executive Officer Clynt Nauman said, “At nearly 22.9 million ounces of indicated silver resource, the Flame & Moth deposit silver inventory is more than twice as large as the original pre-mining 11.0 million ounce Bellekeno Mine indicated silver resource, which is now in its third year of production. Looked at on the basis of a 500 gpt silver cut-off grade, the Flame & Moth deposit contains more than 500,000 tonnes of 861 gpt silver and 0.6 gpt gold accompanied by more than 9% combined lead and zinc. The thickness of mineralization, the continuity of the deposit, its robust grade and the fact that this deposit comes to surface under approximately 20 meters of gravels opens up a number of potential development options for this important discovery. Furthermore, the deposit remains open down dip and down plunge to the south. As a result of this success, we are initiating engineering and baseline studies on the Flame & Moth deposit. In the meantime, we are forging ahead with our plans to commence production from our second and third mines, Onek and Lucky Queen, where we recently received a Quartz Mining License and anticipate award of a Water License in the near future.”
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