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Alexco Resource Corp (AXU)

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Last Post: 12/1/2020 3:06:10 PM - Followers: 74 - Board type: Free - Posts Today: 0







Most Recent Prefeasibility Study

Mining Plus Canada Consulting Ltd. (Mining Plus) was retained by Alexco to prepare a PFS and Independent Technical Report on the Keno Hill Silver Project, located in the Yukon Territory, Canada. The purpose of this report is to disclose the results of the PFS. This Technical Report conforms to National Instrument 43-101 Standards of Disclosure for Mineral Projects.

The Project contemplates the conventional mining and milling of silver-lead-zinc ore from four deposits in the District. There is an existing mill, which will process a high-grade silver-lead-zinc ore. Over the eight-year mine life contemplated in this PFS, the mines will produce 1.18 Mt of ore at an average 805 g/t silver, 2.98% lead, 4.13% zinc and 0.34 g/t gold. Following commissioning, the mill will produce two concentrates; a high-grade lead-silver concentrate averaging 15,890 g/t silver, 54% lead, and 3.7 g/t gold, and a zinc-silver concentrate averaging 649 g/t silver and 53% zinc. The average annualized silver product in concentrate is 4.0 Moz.

Alexco has been actively developing Keno Hill since 2006. Alexco built a new mill complex in 2010 which operated for three years, processing ore from the Bellekeno Mine. Since suspending mining operations in 2013, Alexco maintained the District on care and maintenance and focused on additional exploration leading to increases in the estimated Mineral Resources for the Bermingham and Flame & Moth deposits. In 2018, Alexco completed over 1,000 m of underground development work including an advanced exploration decline at the Bermingham deposit and a new portal and ramp at the Flame & Moth deposit. 

The mine plan for Keno Hill comprises mining from four deposits (also referred to as mines); Bermingham, Flame & Moth, Bellekeno, and Lucky Queen. Most of the ore will come from Bermingham and Flame & Moth (over 90%). Two mines will be operating at any given time, except for the initial three-month ramp up period of ore from Bellekeno only.

The mine plan is based on conventional mining methods. A combination of mechanized overhand cut and fill, and longhole stoping with cemented rock fill have been selected as the appropriate mining methods for all four deposits. The deposits require the use of mining methods that can adequately support the vein and that are flexible and selective while minimizing the direct mining costs. The backfill is planned to be a mixture of waste rock fill and tailings from a dry stack tailings facility with cement added as required.

The estimated Mineral Reserves calculated for this Project are 1.18 Mt grading 805 g/t silver, 2.98% lead, 4.13% zind and 0.34 g/t gold for an overall AgEq grade of 1,136 g/t AgEq as of March 28, 2019 (See Reserves and Resources Table).

The District mill will be recommissioned at the currently permitted average throughput of 400 tpd (146,000 tonne per year) with a planned increase in throughput in Year three, for an overall LOM average throughput of 430 tpd. The mill is a conventional flotation mill producing two concentrates. Tailings are thickened, filtered, and placed in a conventional DSTF, which will be progressively reclaimed.

The Bellekeno, Flame & Moth and Bermingham mines have all permits and authorizations in place to commence full scale mine production. The Onek and Lucky Queen mines are included in Keno Hill’s Quartz Mining License. There are currently no plans for production from the Onek deposit. The Project is de-risked and Alexco is advancing to production in Q4 2020.

The initial capital cost estimate is $23.2 M. This initial capital (pre-production prior to achieving positive cash flow) comprises $17.9 M of mine development and PP&E and $5.3 M of net working capital for the initial construction and ramp up period of five months. The LOM sustaining capital is estimated at $76.5 M, primarily for ongoing mine development.

The direct operating costs for the Project are estimated at a total of $362 M or $312 per tonne of ore. These comprise $226 M of direct mine costs, $70 M of direct mill costs, and $67 M for site general and administrative costs (excluding corporate). However corporate costs are included in the calculation of AISC.

Revenue derives from selling four metals (silver as main product and lead, zinc and gold as by-products), reporting to two concentrates; a lead-silver concentrate and a zinc-silver concentrate. The Project will produce a total of 58,200 t of lead-silver concentrate and 67,800 t of zinc-silver concentrate over the eight-year mine life. Over the LOM, the payable metals produced in these concentrates total 27.2 Moz silver, 65.4 Mlb lead, 67.2 Mlb zinc and 4,707 oz gold.

Metal pricing was based on information from external sources. The LOM net revenue NSR is $652 M and the total cash flow is at $174 M. These are based on metal pricing assumptions as follows:

  • Silver ranging from US$15.75/oz in 2019 to the long-term price of US$18.25/oz;
    Zinc: US$1.25/lb in 2019 and 2020, and US$1.22/lb thereafter;
    Lead: US$0.96/lb in 2019, and US$1.00/lb thereafter; and
    Gold: US$1,275/oz in 2019, US$1,315/oz in 2020 and US$1,325/oz thereafter.

The project economics show this to be a robust project with low capital and high returns with a pre-tax NPV5 of $136.2 M and after-tax NPVof $101.2 M. The pre-tax IRR is 84% and after-tax IRR is 74%. Considering the Project on a stand-alone basis, the undiscounted after-tax cash flow totals $129.3 M over the mine life. Simple payback occurs approximately two years from start of production, approximately 26 months after the end of the initial capital period).

The brownfields nature of the Project means a relatively rapid timeline to full production of six months total. The preproduction period is expected to require up to three months, during which the mill modifications and construction of the additional surface infrastructure (expansion of camp, offices, etc.) will be completed. The ramp up to full production in the mill is expected to take three months.

Exploration will continue at Keno Hill to expand the current resources and in the short term is focused on the Bermingham deposit. In 2020, Alexco plans to complete approximately 5140 m of surface diamond drilling at Bermingham; this is not included in the Project costs summarized in the Technical Report.

It is recognized that there remains considerable estimated Mineral Resources in the indicated category after extraction of the Mineral Reserves considered herein.

Pre-Feasibility Study for Expanded Silver Production at Keno Hill Silver District - February 13, 2020



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AXU News: Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 (6-k) 11/25/2020 06:01:36 AM
AXU News: Alexco Announces Commissioning and Initial Concentrate Production at the Keno Hill Silver District Mill 11/24/2020 05:01:00 PM
AXU News: Alexco Announces Commissioning and Initial Concentrate Production at the Keno Hill Silver District Mill 11/24/2020 05:01:00 PM
AXU News: Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 (6-k) 11/13/2020 06:06:03 AM
AXU News: Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 (6-k) 11/13/2020 06:03:03 AM
#2014   New Stimulus Package in the works by EOW dingocub 12/01/20 03:06:10 PM
#2013   Drill Results in the next few weeks. dingocub 12/01/20 01:01:49 PM
#2012   I am out of AXU totally now... timberwolf7 11/29/20 12:31:53 PM
#2011   Thats what they said some years ago when timberwolf7 11/29/20 12:27:05 PM
#2010   Wolfe, With the slightest uptick in solar there will ironyman 11/25/20 11:25:43 AM
#2009   Alexco Announces Commissioning and Initial Concentrate Production at dingocub 11/24/20 11:27:23 PM
#2008   Why in the world is silver going to timberwolf7 11/24/20 04:08:11 PM
#2007   Hmm....must be some news pending. ironyman 11/23/20 01:15:11 PM
#2006   Until there is some honesty in the markets, ironyman 11/23/20 09:45:55 AM
#2005   One of these days the silver price is AAAtrades 11/23/20 07:50:43 AM
#2004   doing this with CRMD, which has a FDA timberwolf7 11/20/20 03:10:30 PM
#2003   Seems like a shakeout of thePM stocks. No ironyman 11/18/20 03:57:08 PM
#2002   Yes, But you may wake up one day dingocub 11/17/20 11:45:47 PM
#2001   market loves to prove us wrong as often timberwolf7 11/17/20 03:45:44 PM
#2000   LOL... dingocub 11/17/20 12:06:21 PM
#1999   Does today count?? $2.45/46 bid/ask at timberwolf7 11/17/20 11:43:11 AM
#1998   2.45 Pre-Market - Never Opened Below 2.50 dingocub 11/16/20 01:37:43 PM
#1997   the decision: timberwolf7 11/16/20 10:57:33 AM
#1996   first of all, the evidence is showing IF timberwolf7 11/16/20 08:31:33 AM
#1995   oops: hit $2.45 this morn... timberwolf7 11/16/20 08:26:41 AM
#1994   If silver blasts off to 30 and then AAAtrades 11/16/20 02:44:14 AM
#1993   It's Never going below $2.50 again... dingocub 11/14/20 08:09:12 PM
#1992   IF I heard them right, whats taking place timberwolf7 11/14/20 02:42:35 PM
#1991   Nothing Happens with Silver Price until New Stimulus Announced. dingocub 11/14/20 02:37:05 PM
#1990   Interesting that private money was willing to buy ironyman 11/13/20 11:40:41 AM
#1989   Not much was expected. Production starts 4fh quarter. ironyman 11/13/20 10:42:58 AM
#1988   well, looks like its going to hinge on timberwolf7 11/13/20 09:48:15 AM
#1987   well damn... just checked their website timberwolf7 11/11/20 12:52:15 PM
#1986   Tomorrow, Nov 12th... timberwolf7 11/11/20 04:40:06 AM
#1985   Just UPDATED the 'INTRO PAGE' for AXU here dingocub 11/07/20 02:52:49 PM
#1984   They finally updated our SECTOR ~ NAME AND LINK dingocub 11/06/20 10:10:45 PM
#1983   The result of the presidential election might not Alexulf 11/05/20 05:35:08 AM
#1982   At least 2 Big Announcements coming in the dingocub 11/03/20 02:07:48 PM
#1981   Dingocub - Thanks for posting that link douginil 11/03/20 01:37:41 PM
#1980   Nice AXU Investor Video Mine Update By Clynton dingocub 11/03/20 12:10:00 PM
#1979   Don't You Worry My Little Friends... This Fairy dingocub 11/02/20 03:05:53 PM
#1978   Question; Do You Want More ROI On Monday? Alexulf 10/31/20 07:49:18 AM
#1977   Yes, I`m on the same page. Yesterday we Alexulf 10/28/20 02:57:32 PM
#1976   This will change as soon as the October ironyman 10/27/20 04:13:33 PM
#1975   not surprised to hear this. The timberwolf7 10/27/20 03:58:34 PM
#1974   Yesterday/ Monday, 29% of all shares traded were ironyman 10/27/20 10:30:39 AM
#1973   hold shares from around $2.75-2.8, that I bought timberwolf7 10/26/20 08:30:42 PM
#1972   Timberwolf, Agree that awareness is key. it’s a waste ironyman 10/25/20 07:07:01 PM
#1971   I hear you timberwolf7, thx for input. Alexulf 10/25/20 02:20:13 PM
#1970   Ok, thx. Alexulf 10/25/20 02:14:43 PM
#1969   FSM is Fortuna Mining. They are a little ironyman 10/25/20 11:44:37 AM
#1968   Have an 'awareness' going on the Investor Village timberwolf7 10/25/20 10:57:15 AM
#1967   Thx for input ironyman, you are right - Alexulf 10/25/20 06:09:02 AM
#1966   I mentioned it on the FSM site but ironyman 10/24/20 09:00:55 PM
#1965   Hi guys, question; have anyone of you posted/promoted Alexulf 10/24/20 02:25:37 PM
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