Alexco restarts Keno Hill, Canada’s only primary silver mine

Alexco Resource Corp. built and operated Keno hill’s Bellekeno mine from 2011 to 2013, when low silver prices forced it into care and maintenance. Keno hill is one of the purest primary silver mines in the world and one of only a handful of operations of this kind.

The current plan spans eight years and includes approximately 1.2 million tonnes of ore at an average grade of 805 grams of silver per tonne.

In November 2020, Alexco Resource Corp. recommissioned its Keno Hill Silver District mill, located 350 kilometres north of Whitehorse, within the traditional territory of the First Nation of Na-Cho Nyak Dun,

Yukon. This marks the revival of a historic mining district dating back to the early 1900s.

Alexco knows this project well; management built and operated Keno Hill’s Bellekeno mine from 2011 to 2013, when low silver prices forced it into care and maintenance. Since then, Alexco systematically undertook successful exploration programs that led to the discovery of the Bermingham and Flame & Moth deposits, which are the backbone of today’s Keno Hill mine plan.

The 400-tonne-per-day conventional flotation mill is being commissioned with ore from Bellekeno, where mining operations are underway, and will end in the first quarter of 2021. Underground development at Bermingham and Flame & Moth is advancing as planned and ore production will start in Q1 2021. The Lucky Queen deposit is expected to come on stream towards the end of the mine plan.

The current plan spans eight years and includes approximately 1.2 million tonnes of ore at an average grade of 805 grams of silver per tonne. This makes Keno Hill one of the purest primary silver mines in the world and one of only a handful of operations of this kind. The mine will produce four-million silver ounces annually contained in high-quality lead/silver and zinc concentrates.

Alexco is also working to unlock Keno Hill’s significant upside. The mine’s pre-feasibility study was prepared when silver was around US$15 per ounce and based on a high cut-off grade to design a mine capable of operating through the precious metals’ cycles. Approximately 1.2 million tonnes of ore were not included in the mine plan, and with silver trading above US$20 per ounce, management is working to maximize the project’s long-term value.

In addition, Alexco continues to explore the district with emphasis on areas around known resources, such as the Bermingham “deep” target, where 2019 surface drilling returned exceptional results. The 2020 program drilled 7,653 metres with 11 holes completing to the target area. Results are expected

in December 2020 or January 2021, depending on receipt of assay results. Assuming encouragement from 2020 exploration, management will deploy a larger program at Bermingham and other targets in the district in 2021.

In November 2020, during the Yukon Geoscience Forum, Alexco, in conjunction with the Yukon Geological Survey, published an updated geological map of the Keno Hill Silver District, which builds on previous publications and incorporates historical mining records, and historical exploration work, including historical drill program results. By publishing this work, put together by Alexco’s VP of exploration, Al McOnie, and his team, Alexco expects to contribute to a better understanding of the district’s potential and to benefit Yukon’s exploration and mining community.

Clynt Nauman, Alexco’s chairman and CEO commented, “Keno Hill formed a mainstay of the Yukon economy and the territory’s culture for a long period of time and is now re-entering an exciting, renewed era of highgrade silver production. In order to be successful into the future, it is critical we have a proper understanding of the district’s bedrock geology and deposits, and this updated map will help to inform our exploration programs moving forward.”

Reopening Keno Hill took determination and hard work, and thanks to Clynt Nauman and his team’s vision, the Yukon now has three operating mines and Canada has a primary silver mine again. As precious metals regain their status as store of value in times of uncertainty, it is time for Keno Hill and Alexco to shine. 8