Alexco Updates Progress at Bellekeno Mine-Secures Final Permit ...

Tag : sphalerite
October 9, 2008 1:19 PM EDT
VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 10/09/08 -- AlexcoResource Corp. (TSX: AXR )(AMEX: AXU ) ("Alexco" or the "Company") is pleased to report that it hasreceived the final Water Licence required for completion ofunderground development at its Bellekeno Mine in the Keno HillSilver District, Yukon. The permit was received on schedule and isrequired to discharge water from the historic mine workings. TheType B Water Licence clears the way for accelerated completion ofthe rehabilitation of the historic workings followed by anunderground definition and exploration drilling program and bulksampling, in anticipation of a production decision in early 2009.The Bellekeno Mine contains an inferred resource of 537,000 tonnescontaining 1,016 grams per tonne silver, 13.5% lead and 10.7% zinc,is "open" to depth and along strike, and is the initial focus ofthe Silver Wheaton - Alexco silver purchase agreement wherebySilver Wheaton will advance US$50 million to Alexco to capitalizedevelopment and construction of the Bellekeno Mine, and willfurther pay to Alexco US$3.90 per ounce of silver for 25% of thesilver stream produced from Bellekeno and elsewhere in the KenoHill Silver District.
To date, Alexco and its contractor Procon Mining and Tunneling Ltd.have completed approximately 60% of the new 650 meter BellekenoEast (BKE) decline (4.5 meters x 4.5 meters) to access the formerBellekeno workings in the area of the 99 zone, which is centrallylocated between the silver-lead rich Southwest zone and thezinc-silver East zone. At the same time, approximately 400 metersof rehabilitation and 80 meters of bypass drift has been completedalong the historic 625 level which will act as a secondary accessfor escape, ventilation and ingress/egress, as well as anexploration platform from which the East zone can be furtherexplored. The 625 level work has also exposed the shallower upperextent of the East zone mineralization (the "48 vein") whichappears as veins and stockworks of massive sphalerite with minorgalena, up to 2 meters wide, which has been sampled formetallurgical and assay purposes. Break-through of the BKE declineto the former workings and completion of 625 bypasses isanticipated within 50 days, on schedule.
The Type B Water Licence recently received by Alexco will allowrapid dewatering of the historic underground workings in the fourthquarter 2008 following break through of the BKE decline. The WaterLicense is the third major permit for the Keno Hill project to besecured by Access Consulting Group, a wholly owned subsidiary ofAlexco, within the last 11 months. Each permit was received onschedule and within budget, allowing all Keno Hill Silver Districtoperations (mine development, exploration, district reclamation andclosure planning) to proceed seamlessly and without interruptionalong an aggressive development timeline. Alexco is now proceedingwith preparation for submission of final production-phase permitapplications for future Bellekeno operations. "Alexco is pleased tohave secured this permit, and believes that our environmentalservices group has once again demonstrated its ability to rapidlyand effectively secure necessary authorizations and managepermitting risk for projects such as Keno Hill", said Clynt Nauman,President and CEO of Alexco.
Following dewatering and rehabilitation of the Bellekeno historicworkings in the fourth quarter of calendar 2008, approximately10,000 meters of underground definition and exploration drillingwill begin. This drilling will initially be targeted at definingand expanding the silver-lead mineralization outlined in the 99 andSouthwest zones, where surface drilling in 2007 outlined aninferred resource of 357,800 tonnes containing 1,394 grams pertonne silver, 19.0% lead and 5.5% zinc. A bulk sample will also beextracted from this zone to confirm metallurgical recoveries andmining conditions. Alexco's objective is to obtain sufficientresults from the advanced exploration and bulk sampling programs tomake a commercial development and construction decision atBellekeno early in the calendar 2009 year.
Disclosure of Scientific and Technical Information
For full details regarding scientific and technical informationprovided in this news release regarding the Bellekeno propertyincluding resource estimates for the 99, Southwest and East zones,see the Alexco news releases dated October 3, 2008, entitled"Alexco Enters Into Silver Purchase Agreement With Silver Wheaton";July 9, 2008, entitled "Alexco Releases Positive PreliminaryEconomic Assessment on Bellekeno Deposit"; and January 30 ,2008,entitled "Alexco Outlines New Zinc-Silver Zone at Bellekeno andUpdates Resource Estimate". The contents of this news release havebeen reviewed by Stan Dodd, Vice President, Exploration for Alexcoand a Qualified Person as defined by National Instrument 43-101"Standards of Disclosure for Mineral Properties", who takesresponsibility for the disclosure herein of scientific andtechnical information pertaining to Alexco's mineral properties.
Keno Hill Silver District History
Between 1921 and 1988, the Keno Hill district produced more than217 million ounces of silver with average grades of 40.5 ounces perton silver, 5.6% lead and 3.1% zinc (Yukon Government's Minfiledatabase). The historical production grades would rank Keno Hill inthe top 3% by grade of today's global silver producers. The KenoHill district is the second-largest historical silver producer inCanada.
About Alexco
Alexco's business is to unlock value and manage risk at mature,closed or abandoned mine sites through integration andimplementation of the Company's core competencies which includemanagement of environmental services, execution of mine reclamationand closure operations and if appropriate, rejuvenation ofexploration and development activity.
Some statements in this press release contain forward-lookinginformation. These statements include, but are not limited to,statements with respect to the entering into of agreements, theclosing of transactions and the expenditure of funds. Thesestatements address future events and conditions and, as such,involve known and unknown risks, uncertainties and other factorswhich may cause the actual results, performance or achievements tobe materially different from any future results, performance orachievements expressed or implied by the statements. Such factorsinclude, among others, the timing of transactions, the ability tofulfill certain conditions, the ability to raise funds and thetiming and amount of expenditures. Related Categories Press Releases Stocks Mentioned