(All amounts in CDN$ unless otherwise
indicated)
VANCOUVER, BC, Aug. 11, 2021 /PRNewswire/ - Alexco Resource
Corp. (NYSE American: AXU) (TSX: AXU) ("Alexco" or the
"Company") today reports financial results for the quarter
ended June 30, 2021
("Q2 2021"). The Company also provides an update on
capital development projects, scale up of mining operations, and
exploration activities at Keno Hill.
Q2 2021 Highlights
- 22% Increase in Mineral Reserves at Keno Hill: On
May 26, 2021, the Company announced
the expansion of Mineral Reserves by 22% or 270,000 tonnes to 1.44
million tonnes, grading an average 804 grams per tonne
("g/t") silver ("Ag"), 3.84% zinc ("Zn"),
2.64% lead ("Pb"), 0.31 g/t gold ("Au"), or
approximately 1,035 g/t Ag equivalent1. The updated
reserve mine plan is projected to produce over 35.5 million ounces
of Ag over the next 8 years.
- Mill Performance, Throughput and Recovery on Track:
Since initial commissioning in December
2020, the mill has been operating on a modified schedule
(primarily to match ore production from the Bellekeno mine) and saw
throughput of 176 tonnes per operating day ("tpd") in Q2
2021 as ramp up continues towards 400 tpd. For the first six months
of 2021 ("YTD"), mill throughput totaled 14,726 tonnes at
773 g/t Ag. Installation of cyclones, the addition of a new
tailings filter press, installation of a new fine ore feeder, and
construction of a new building around the crusher have all been
completed as planned at the mill. For Q2 2021, Ag recoveries
averaged 93%, with 94% of Ag reporting to the Pb concentrate.
- On Track to Reach Bermingham and Flame & Moth Ore in
Second Half of 2021: Underground development rates have
increased since the first quarter of 2021 ("Q1 2021"), and
the Company has contracted additional underground miners and
maintenance technicians to supplement internal staffing and
resources and to increase advancement rates.
-
- Bellekeno: Ore production is expected to be complete in
the third quarter of 2021 ("Q3 2021") after which equipment
and operators will be redeployed to Bermingham and Flame and
Moth.
- Bermingham: Initial ore production anticipated in Q3
2021.
- Flame & Moth: The main ramp has reached the first
ore access level and advancement of this level to crosscutt the ore
is underway, with initial ore production anticipated in the fourth
quarter of 2021 ("Q4 2021").
- Bermingham Northeast Deep Zone Exploration Program Results
Expected: To date, approximately 11,500 meters ("m")
have been drilled using directional drill technology; a total of
more than 50 intercepts are targeted on the mineralized vein zone,
with initial drill results anticipated to be available in late
August.
|
1 Ag
eq. calculated using the annual metal price assumptions used for
Mineral Reserves as shown in Table 22-3 of the NI 43-101 Technical
Report on Updated Mineral Resource and Reserve Estimate of the Keno
Hill Silver District.
|
Key Performance Metrics
|
Operations
|
Q2
2021
|
Q1
2021
|
∆-Q1 vs
Q2
|
YTD
2021
|
|
|
|
|
|
|
Ore tonnes
mined
|
6,464
|
4,427
|
46%
|
10,891
|
|
Ore tonnes
milled
|
10,896
|
3,850
|
183%
|
14,746
|
|
Mill throughput
(tpd)1
|
176
|
107
|
65%
|
150
|
|
|
|
|
|
|
Head
grade
|
|
|
|
|
|
Silver
(g/t)
|
703
|
985
|
(29%)
|
773
|
|
Lead
|
9.3%
|
11.9%
|
(22%)
|
9.8%
|
|
Zinc
|
3.1%
|
3.3%
|
(0.06%)
|
3.2%
|
|
|
|
|
|
|
Recoveries
|
|
|
|
|
|
Silver
|
93%
|
83%
|
12%
|
90%
|
|
Lead in lead
concentrate
|
83%
|
85%
|
(2%)
|
83%
|
|
Zinc in zinc
concentrate
|
85%
|
31%
|
174%
|
70%
|
|
|
|
|
|
|
Concentrate
production and grades
|
|
|
|
|
|
Lead concentrate
produced (tonnes)
|
1,174
|
539
|
118%
|
1,713
|
|
Silver grade
(g/t)
|
5,729
|
5,664
|
1%
|
5,690
|
|
Lead grade
|
70%
|
72%
|
(3%)
|
70%
|
|
Zinc concentrate
produced (tonnes)
|
635
|
105
|
505%
|
740
|
|
Silver grade
(g/t)
|
715
|
775
|
(8%)
|
637
|
|
Zinc grade
|
53%
|
37%
|
43%
|
44%
|
|
|
|
|
|
|
Production –
contained metal in concentrate
|
|
|
|
|
|
Silver
(ounces)
|
227,683
|
100,984
|
125%
|
328,667
|
|
Lead
(pounds)
|
1,799,959
|
854,346
|
111%
|
2,654,305
|
|
Zinc
(pounds)
|
637,780
|
86,494
|
637%
|
724,274
|
|
|
|
|
|
|
Financials
|
Q2
2021
|
Q2
2020
|
|
YTD
2021
|
|
(expressed in
thousands of Canadian dollars, except per share
amounts)
|
|
|
|
|
|
|
Revenues – Mining
operations
|
7,501
|
-
|
|
10,234
|
|
Revenues – Reclamation
management
|
438
|
871
|
|
1,518
|
|
Operating
Loss
|
(2,489)
|
(2,778)
|
|
(5,543)
|
|
Cash and cash
equivalents
|
39,123
|
17,799
|
|
39,123
|
|
Net Working
Capital2
|
30,240
|
24,405
|
|
30,240
|
|
Adjusted Net Income
(Loss)2
|
(2,548)
|
(650)
|
|
(1,397)
|
|
Net Income
(Loss)3
|
(2,748)
|
(12,229)
|
|
1,411
|
|
|
|
|
|
|
Shareholders
|
|
|
|
|
|
Basic and diluted net
income (loss) per common share3
|
(0.02)
|
(0.10)
|
|
0.01
|
|
Adjusted basic and
diluted net loss per common share2
|
(0.02)
|
(0.01)
|
|
(0.01)
|
|
|
|
|
|
|
Total
assets4
|
215,448
|
152,200
|
|
215,448
|
|
Total
liabilities5
|
28,533
|
14,194
|
|
28,533
|
|
1.
|
Mill throughput
(tonnes per day) is based on the number of days that the mill was
operational during the period. The mill was operational for 62 days
and 36 days during Q2 2021 and Q1 2021,
respectively.
|
|
2.
|
See "Non-GAAP
Measures" in Section 11 of the Q2 2021 MD&A.
|
|
3.
|
Net loss for Q2
2021 includes a non-cash fair value loss relating to the embedded
derivative asset totaling $200,000 (2020 - $11,579,000). Net income
for YTD 2021 includes a non-cash fair value gain relating to the
embedded derivative asset totaling $2,808,000 (2020 - loss of
$3,482,000).
|
|
4.
|
Total assets
increased primarily due to increases in cash and cash equivalents
and mineral properties, plant and equipment.
|
|
5.
|
Total liabilities
increased primarily due to increases in accounts payable and
accrued liabilities and lease liabilities.
|
Outlook and Strategy
Clynt Nauman, Chairman and CEO,
commented, "During the second quarter, we made good progress at
Keno Hill, increasing mine reserves by 22% and ramping up mill
throughput by 65% over Q1 2021, while maintaining strong
metallurgical performance, both from a recovery and payability
perspective. We continue to be extremely focused on increasing our
underground development rates, and we remain on track to reach
Bermingham and Flame & Moth ore in the second half of 2021. We
do caution investors however that the longer term continuation or
increased COVID-19 related workplace restrictions, slower than
forecasted development advance rates or recruitment of underground
miners and maintenance technicians, may have the effect of
extending our scale-up period. The directional drilling campaign at
the Bermingham Northeast Deep zone has given us a significant
amount of high-quality information and we are looking forward to
sharing those initial results with the market in late August, once
assay results are available."
Conference Call for Q2 2021 Results
Alexco management will host an audio webcast conference call to
discuss these results on Thursday, August
12, 2021 at 8:00 am PT
(11:00 am ET). Details to join the conference call are as
follows:
Dial toll free from Canada or
the US: 1-800-319-4610
Dial from outside Canada or the
US: 1-604-638-5340
Live audio
webcast: http://services.choruscall.ca/links/alexco20210812.html
Participants should connect five to ten minutes before the call.
The conference call will be recorded, and an archived audio webcast
will be available at www.alexcoresource.com shortly after
the call.
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, Vice President,
Exploration, while that regarding mine development and operations
has been reviewed and approved by Neil
Chambers, P.Eng., Chief Mine Engineer, 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 deposits in the world. Alexco is currently advancing Keno
Hill to production and commenced concentrate production and
shipments in Q1 2021. 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.
Forward-Looking Statements
Some statements
("forward-looking statements") in this news release contain
forward-looking information plans related to Alexco's business and
other matters that may occur in the future, made as of the date of
this news release. 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 risks and
uncertainties relating to the COVID-19 pandemic including but not
limited to business closures, travel restrictions, quarantines
and a general reduction in consumer activity; actual results and
timing of exploration and development, mining, environmental
services and remediation and reclamation activities; future prices
of silver, gold, lead, zinc and other commodities; possible
variations in mineral resources, grade or recovery rates; failure
of plant, equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry;
First Nation rights and title; continued capitalization and
commercial viability; global economic conditions; competition; and
delays in obtaining governmental approvals or financing or in the
completion of development activities. Forward-looking statements
are based on certain assumptions that management believes are
reasonable at the time they are made. In making the forward-looking
statements included in this news release, Alexco has applied
several material assumptions, including, but not limited to the
circumstances surrounding the COVID-19 pandemic, although evolving,
will stabilize or at least not worsen; that the extent to which
COVID-19 may impact the Company, including without limitation
disruptions to the mobility of Company personnel, costs associated
with implementation of health and safety protocols, increased
labour and transportation costs, and other related impacts, will
not change in a materially adverse manner; Alexco will be able to
raise additional capital as necessary, that the proposed
exploration and development activities will proceed as planned, and
that market fundamentals will result in sustained silver, gold,
lead and zinc demand and prices. There can be no assurance that
forward-looking statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Alexco expressly disclaims any
intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise, except as otherwise required by applicable securities
legislation.
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SOURCE Alexco Resource Corp.