VANCOUVER, BRITISH COLUMBIA (AMEX: AXU)("Alexco") is pleased to
announce a Mineral Resource Statement for the historic Bellekeno
Mine, located in the Keno Hill silver district, Yukon Territory.
The stated resource incorporates results from the 2006/2007 Alexco
drilling and includes a new estimate for the Southwest Zone, one of
the three zones that comprise the Bellekeno silver deposit. The
resources for the other two zones, 99 and East, are based on a
re-classification of an historical polygonal resource done by
United Keno Hill Mines ("UKHM") in 1997. The total stated resource
represents a significant increase in tonnage and grade over the
previously reported historic resource.
Highlights
- SRK has completed a Mineral Resource Statement for the
historic Bellekeno mine located in the Keno Hill district, YT. The
total Inferred Resource for the Bellekeno Mine is stated at 356,000
tonnes grading 1,630 grams per tonne Ag, 20.3% Pb and 5.9% Zn.
- Compared to the historic resource, total contained silver has
increased approximately 84% to 18.7 million ounces, and contained
silver equivalent ounces have increased approximately 82% to 32.2
million contained silver equivalent ounces(i).
- The new estimate represents a tonnage increase of 35% over the
historic UKHM resource. Silver grades have increased 37% and lead
grades have increased 75%.
- Bellekeno metallurgical testing to be completed soon; metal
recoveries ranging from 85- 95% expected.
- Mine planning and engineering studies in progress, underground
exploration/development permitting process begun.
- The current consolidated Bellekeno resource estimate
incorporates 2006/2007 Alexco drill results for the Southwest Zone
only and does not include recent work from the 99 and East Zones. A
further update to this resource is expected in Q1 of 2008.
Bellekeno 43-101 Compliant Estimate Expands Resource
SRK Consulting (Canada) Inc. ("SRK") has recently completed a
Mineral Resource Statement for the Bellekeno Mine. The resource
estimate was completed by G. David Keller (P.Geo.), Principal
Resource Geologist with SRK and a Qualified Person as defined by
National Instrument 43-101 ("NI 43-101"). Mr. Keller has reviewed
and verified the contents of this release.
The resource model concerns three zones along the main Bellekeno
"48" vein: Southwest, 99 and East Zones. For the Southwest Zone,
SRK constructed a new resource estimate using a geostatistical
block modeling approach constrained by wireframe. For the 99 and
East Zones, SRK re-classified an historical polygonal resource
estimate after auditing the methodology used by UKHM in 1997. All
mineral resources are classified as Inferred Mineral Resources
following the CIM Definition Standards for Mineral Resources and
Mineral Reserves (December 2005) guidelines.
The total Inferred Resources for the Bellekeno Mine are stated
at 356,000 tonnes grading 1,630 grams per tonne Ag, 20.3% Pb and
5.9% Zn for 18.7 million ounces of contained silver and 32.2
million contained equivalent ounces(i) silver using a cutoff grade
of 500 grams per tonne silver for the Southwest Zone and 15 ounces
per ton for the 99 and East Zones. Table 1 below summarizes the
resource estimate for all three zones that comprise the Bellekeno
resource area. The new resource estimate represents a 35% or 91,700
tonne increase and a 37% or 12.8 ounces per ton increase in silver
grade compared to the prior historical Bellekeno resource.
(i) Silver (Ag) equivalent ounces calculated based on metal
prices of US$525/oz Au, US$8.00/oz Ag, US$0.45/lb Pb, and
US$0.75/lb Zn; metallurgical recoveries not considered.
Since 2006 Alexco Resource Corp has completed approximately
14,700 meters of surface diamond drilling (HQ and NQ) in the
Bellekeno area to validate known resources and expand resources
down plunge, down dip and along strike, especially within the
silver-lead rich Southwest Zone and the zinc rich East Zone. Prior
to Alexco's confirmation drilling a historic non 43-101 resource
estimate was prepared in 1997 by Keno Hill mine staff. This
historic resource is shown in Table 2.
Table 1: Consolidated NI 43-101 Compliant Resource Statement(ii)
for the Bellekeno Deposit, SRK Consulting, November 10, 2007.
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Category Zone Tonnage Ag Pb Zn Au
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(Tonnes) (gpt) (%) (%) (gpt)
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Inferred 99(iii) 55,700 1,593 11.1 5.5 0.0
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East(iii) 22,300 1,056 5.3 7.1 0.2
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Southwest(iv) 278,000 1,683 23.4 5.9 0.4
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Total Inferred 356,000 1,630 20.3 5.9 0.3
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(ii) Mineral resources are not mineral reserves and do not have
demonstrated economic viability. All figures have been
rounded to reflect the relative accuracy of the estimates.
(iii) Reported at a cut-off of 15 ounces per ton silver. Silver
grades capped at 100 ounces per ton.
(iv) Reported at a cut-off of 500 grams per tonne silver.
Silver grades not capped.
Table 2: Historic Mineral Resource(a) for the Bellekeno Deposit,
UKHM, March 1997.
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Resource Tonnage Ag Au Pb Zn Ag Eq Ag Eq
Category ---------------------------------------------------------------
(Tons) (oz/ton) (oz/ton) (%) (%) (i) (i)
(oz/ton) (Moz)
---------------------------------------------------------------------------
(Imperial original
reporting units)
Measured &
Indicated 253,300 36.5 0.01 12.4 7.1 64.4 16.3
Inferred 38,000 23.0 0.01 6.0 4.0 37.9 1.4
(Metric converted
units)
(Tonnes)(g/tonne) (g/tonne) (%) (%)
Measured &
Indicated 229,900 1,251 0.34 12.4 7.1
Inferred 34,400 789 0.34 6.0 4.0
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(a) Historical mineral resource estimate prepared by Keno Hill mine staff
before the development of NI43-101. This historical resource estimate
that is considered relevant should not be relied upon. Alexco does not
consider this estimate current. Mineral resources are not mineral
reserves and do not have demonstrated economic viability. All figures
have been rounded to reflect the relative accuracy of the estimates.
Resource reported at a 15 oz/t silver cut-off. Silver grades capped at
100 ounces per ton.
The current consolidated resource estimate shown in Table 1
incorporates results from the 2006/2007 Alexco drill results for
the Southwest Zone only and does not include recent work from the
99 and East Zones. A further update to this resource is expected in
Q1 of 2008.
Metallurgy
SGS-Lakefield is currently finalizing metallurgical test work on
a drill core composite from the Bellekeno Southwest zone obtained
in 2006. Initial results confirm overall silver and base metal
recoveries in the range of 85-95% can be obtained using a
conventional lead and zinc floatation process.
Planned Development, Mine Planning, Permitting
Preliminary mine planning and engineering studies in preparation
for underground exploration are underway under the direction of Tim
Hall, Alexco's Manager, Project Development. Currently the
following studies are ongoing:
- Preliminary and conceptual mine planning and backfill
- Ground Control and rock mechanics
- Scoping study level CAPEX and OPEX costs
- Engineering studies for power generation
- ABA analysis
- Hydrology
- Metallurgy and flow sheet development
Appropriate permit applications are being prepared, to allow for
underground exploration and definition drilling of the Bellekeno
deposit. Alexco anticipates that once appropriate permits are in
hand, a decline extending approximately 633 meters to the historic
workings will be driven and approximately 2300 meters of historic
rehabilitation will be completed. The excavated dimensions of the
decline will be approximately 5 meters in width by 4 meters in
height and will allow access of exploration and production
equipment.
Keno Hill Silver District History
Between 1921 and 1988, the Keno Hill 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 activity. NovaGold Resources Inc. with
a 19% equity interest is Alexco's largest shareholder
Some statements in this press release contain forward-looking
information. These statements include, but are not limited to,
statements with respect to the entering into of agreements, the
closing of transactions and the expenditure of funds. These
statements address future events and conditions and, as such,
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
to be materially different from any future results, performance or
achievements expressed or implied by the statements. Such factors
include, among others, the timing of transactions, the ability to
fulfill certain conditions, the ability to raise funds and the
timing and amount of expenditures.
Contacts: Alexco Resource Corp. Clynton R. Nauman President and
Chief Executive Officer (604) 633-4888 Email:
info@alexcoresource.com Website: www.alexcoresource.com