Alexco Resource Corp (AXU)

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Alexco Resources mentioned in Financial Post

"Alexco stood out on the tour because it has been and will be again a fully functioning mine with its own 400 ton per day mill. That mill is in the shadow of one of the most prolific historical silver regions in the world. Between 1914 and 1989 6.8 million kilograms of silver were extracted from the area. However, in 1989 the Keno Hill Mine was closed due to collapsing metal prices. The asset was sold by the federal government to Alexco in 2009 as part of a package which included significant remediation of the environmental damage created by the earlier mining.

Alexco operated commercially beginning in 2011 producing approximately two million ounces of silver and more than 20 million pounds of lead and zinc concentrate per year into 2013 when production was suspended in the face of collapsing silver and base metal prices. To get its mill built, Alexco entered into a silver purchase agreement with Silver Weaton which, in March 2017, was amended to allow Alexco much greater flexibility in processing its resource. This agreement has been criticized but, as Alexco President and CEO, Clynton Nauman said during his presentation, “I’d probably do the deal again. It got us the mill and added 50 million dollars in market value.”

As at 2016 Alexco had an indicated silver resource of 23 million plus ounces with an average grade of 800 gpt. The entire property is prospective. So much so that when the company was bulldozing the ground for its mill, it found a deposit more or less directly under the mill site. The Flame and Moth deposit has an indicated resource of 1,679,000 tonnes grading 498 gpt.

However, the long term story at Alexco is likely up the hill at the Bermingham. I was lucky enough to be driven up by British born geologist Seymour Iles who many believe is responsible for understanding the Bermingham discovery. And, potentially, for recognizing the geological patterns which underlie and control much of the Keno Hill District’s silver resource.

In the back of the truck were Greg Johnson, CEO of Metallic Minerals (V.MMG) and Bill Harris, a Director of Metallic. Metallic’s property is adjacent to, and on-trend with, Alexco’s operations. Before very long Greg and Seymour had gone deep into the geology of the district. So deep that when we stopped Seymour was drawing fault lines on the dust covered windows of the crew cab. Greg took out his phone and snapped a picture of the diagram.

Right now Alexco is awaiting some permitting before it goes back into production. It has cash in the bank and a solid 25% of its stock is institutionally held. As it waits for its permits, the company has an aggressive drilling program in place to add ounces to its resource. Currently the mine life is estimated at 8 years, success at Bermingham and at other drill locations could extend that life significantly. It will also give Seymour Iles more data for his developing model of the Keno Hill Silver District."

http://business.financialpost.com/commodities/mining/small-cap-news/yukons-tintina-trend-gold-silver-and-exploration/wcm/2b17e786-ccbd-4677-a718-ff154c8c9fc3