AXR:TSX / AXU:NYSE-A
President and CEO: Clynton Nauman
Executive Vice President and COO: Brad Thrall
Vice President, Exploration: Alan McOnie
Alexco Resource Corp. is focused on unlocking value in the historic silver-rich Keno Hill district, which covers about 23,350 hectares, or 56,274 acres, in central Yukon Territory and a growing environmental consulting and reclamation and mine closure business. Alexco’s primary exploration objective in 2013 was the Flame & Moth and Bermingham properties, as well as targets on the Elsa-Husky trend. The 2012 exploration program expanded Flame & Moth’s indicated resource to 22.9 million ounces of silver in 1.38 million metric tons grading 516 grams per metric ton silver, 1.72 percent lead and 5.70 percent zinc plus another 107,000 metric tons inferred grading 313 grams per metric ton silver, 0.86 percent lead and 4.21 percent zinc. Alexco planned exploration in 2013 on a smaller scale than 2012 with a budget of C$3 million to C$5 million, to be funded by a C$7 million flow-through share financing completed in April. Further surface exploration drilling to potentially extend the Flame & Moth deposit was conducted this summer, funded by a flow-through financing completed in April. In September, the company reported that drilling has confirmed a further 220-meter extension of the mineralized Flame vein to the southwest of the previously defined silver resource at Flame & Moth. The deposit remains open down plunge to the southwest, and to the northeast. Alexco also said results from 2013 surface drilling at the Bulldozer prospect, discovered in 2012 about 500 meters west of the Flame & Moth deposit, returned up to 28.7 ounces per ton silver over 0.85 meters on a separate but probably related structure. The results indicate the presence of a locally mineralized NNE-SSW trending corridor that is prospective over two kilometers (1.2 miles) in the immediate Christal Lake area and is interpreted to extend a further six kilometers (four miles) northeast to the Sadie Ladue deposit. Alexco also conducted baseline geotechnical, metallurgical and environmental work as well as preliminary engineering on the Flame & Moth deposit to study potential production options in context with existing mines and other opportunities in the district. Separately, a technical review of exploration results from prior years was carried out to identify new exploration targets for future drill programs. Sharp and significant declines in precious metal prices occurred during the second quarter of 2013, with silver declining from US$28.64 at the beginning of the quarter to US$18.86 at June 30. As a result, Alexco reported plans in July for a temporary suspension of operations at the Bellekeno mine prior to the onset of winter. The company continued mining through the month of August and implemented the suspension during September. Mining is targeted for re-start in 2014, depending on improvements in silver markets and the results of the corporation’s efforts over winter to improve the underlying fixed-cost structure of the mine. In May 2013, the corporation received the completed and signed type A water license amendment from the Yukon Water Board, the final permit necessary to enable the corporation to process mill feed from the Onek and Lucky Queen mines. However, in light of the recent decline in silver prices and the decision to suspend mining operations at Bellekeno, plans for initiation of production from Onek and Lucky Queen have been deferred.
Cash and short-term deposits: C$10.9 million (June 30, 2013)
Working capital: C$15.6 million (June 30, 2013)
Market capitalization: C$87.0 million (Oct. 2, 2013)
200 Granville Street • Suite 1150, Vancouver, BC Canada V6C 1S4
Tel: 604-633-4888 • Fax: 604-633-4887
www.alexcoresource.com
