|
VANCOUVER,
BRITISH COLUMBIA--(Marketwire - Sept. 29, 2010) - Alexco Resource Corp.
(TSX:AXR)(NYSE Amex:AXU) ("Alexco" or the
"Company") is pleased to report the completion of mine and
mill construction, and the initiation of mill commissioning, at its
wholly owned Bellekeno project, located within the Keno Hill Silver
District in Canada's Yukon Territory. Construction of the 400 tonne per
day conventional flotation concentrator and preproduction development
of the Bellekeno underground mine has been completed on schedule and
within 3% of budget.
Mill commissioning has commenced with component electrical testing and
will expand to wet testing, pressure testing and introduction of low
grade mill feed over the next week to ten days. This will be followed
by scale-up and metallurgical optimization over the next four to five
weeks to achieve the planned 250 tonne per day production rate.
Underground mine development has been completed ahead of schedule, with
increased productivities and design improvements resulting in 60% more
stope faces initially being available for production than planned;
design improvements have also resulted in an approximate 50% decrease
in future sustaining development required to execute the existing mine
plan. Approximately 3,000 tonnes of ore grade material is stockpiled
and ready for processing.
Ancillary facilities are complete, including the installation of a new
bridge and haul road, assay laboratory, offices, change facilities and
camp accommodations upgrades. As previously disclosed in the news
release dated August 23, 2010 and entitled "Alexco Issued Type A
Water Use Licence, Sets Plans to Commence Silver Production at Keno
Hill", all permits and licences are also in place to enable
commencement of commercial production.
Underground and surface exploration continues at the Bellekeno deposit,
and is expected to extend into the first quarter of calendar 2011 with
at least 2,000 meters of an expanded drilling program yet to be
completed. Exploration drilling at the adjacent Onek zinc-silver
deposit is substantially complete, and results are pending. New
resource calculations for the Bellekeno and Onek deposits are scheduled
to be completed in the second quarter of calendar 2011.
Bellekeno Mine
The Bellekeno mine will operate initially at 250 tonnes per day
supplying feed to a conventional flotation mill, producing up to 12,000
tonnes of lead-silver concentrate and 8,400 tonnes of zinc concentrate
annually and generating up to 2.8 million ounces of silver per year.
Initial silver grades in calendar 2010 and 2011 are expected to be
approximately 1,000 grams per tonne. The mine and mill operations will
employ approximately 120 people and are expected to directly invest
more than $25 million annually for labour, materials and supplies in
the Yukon.
As disclosed in the news release of November 11, 2009 entitled
"Alexco Completes Positive Bellekeno Mine Development Plan, Silver
Wheaton Concurs - Initiation of Construction Approved", the
Bellekeno deposit contains an indicated resource estimated at 401,000
tonnes grading 921 grams per tonne silver, 9.4% lead and 6.5% zinc, of
which 321,941 tonnes containing an estimated 871 grams per tonne
silver, 9.5% lead and 5.6% zinc on a payable metals basis are included
in the initial mine plan. The deposit remains open down dip and down
plunge, and underground definition and exploration drilling to expand
the mineable resource is currently underway in parallel with mine
development activities.
Silver Wheaton Agreement
In October 2008, Alexco entered into an agreement under which Silver
Wheaton Corp. (TSX:SLW)(NYSE:SLW) will purchase 25% of future Keno Hill
District silver production at a cost of US$3.90 per ounce of silver
delivered, plus up-front deposit payments to Alexco totaling US$50
million. An initial US$15 million deposit payment was received from
Silver Wheaton in December 2008, with the remaining US$35 million to be
provided for the construction and development of the Bellekeno Mine on
a monthly draw-down basis subject to certain conditions including
Alexco having sufficient committed funds available to complete
construction and achieve production within specified time frames. To
date, US$18.3 million of the remaining funds has been received from
Silver Wheaton, with the balance to be received under periodic draws
between now and the satisfaction of an initial 250 tonne per day
completion test, in the normal course as provided under the agreement.
Qualified Person
The scientific and technical information about the Bellekeno Mine
project contained in this news release has been reviewed and verified
by Stan Dodd, Vice President, Exploration for Alexco and a Qualified
Person as defined by National Instrument 43-101.
Keno Hill Silver District History
Between 1921 and 1988, the Keno Hill Silver District produced more than
217 million ounces of silver with average grades of 40.5 ounces per ton
silver, 5.6% lead and 3.1% zinc (Yukon Government's Minfile database).
The historical production grades would rank Keno Hill in the top 3% by
grade of today's global silver producers. The Keno Hill district is the
second-largest historical silver producer in Canada.
About Alexco
Alexco's business is to unlock value and manage risk at mature, closed
or abandoned mine sites through integration and implementation of the
Company's core competencies which include management of environmental
services, execution of mine reclamation and closure operations and if
appropriate, rejuvenation of exploration and development of new mining
opportunities.
Some statements in this news release contain forward-looking
information concerning the Company's anticipated results and
developments in the Company's operations in future periods, planned
exploration and development of its properties, plans related to its
business and other matters that may occur in the future, made as of the
date of this press release. Forward-looking statements may include, but
are not limited to, statements with respect to future remediation and
reclamation activities, future mineral exploration, the estimation of
mineral reserves and mineral resources, the realization of mineral
reserve and mineral resource estimates, the timing of activities and
the amount of estimated revenues and expenses, the success of
exploration activities, permitting time lines, requirements for
additional capital and sources and uses of funds. Forward-looking
statements are subject to a variety of known and unknown risks,
uncertainties and other factors which could cause actual events or
results to differ from those expressed or implied by the
forward-looking statements. Such factors include, among others, risks
related to actual results of remediation and reclamation activities;
actual results of exploration activities; conclusions of economic
evaluations; changes in project parameters as plans continue to be
refined; future prices of gold, silver and other commodities; possible
variations in ore bodies, grade or recovery rates; failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes and other risks of the mining industry; and delays in
obtaining governmental approvals or financing or in the completion of
development activities.
|