Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Alexco Resource (TSX: AXU) has updated and expanded the resource estimate at its Bermingham deposit in the Keno Hill district of the Yukon. The company made the update using data from drilling during the period 1919 to 2021, including the recently completed 17,742-metre directional program.
The Bermingham deposit now contains 43% more silver then earlier estimates. The indicated resource is 47.2 million oz. of silver, up from 33 million ounces. The inferred resource contains 19.9 million oz. of silver, up from 11.7 million oz., a gain of 70%.
The indicated category contains 1.6 million tonnes grading 939 g/t silver, and the inferred category contains 843,400 tonnes at 725 g/t silver.
And the Bermingham deposit remains open in all directions.
Mining at the Bermingham deposit is currently taking place from longhole stopes in the upper 1150 level, and additional production levels are to be developed this year as the primary haulage ramp continues to advance.
The ramp is expected to reach within 200 metres of the newly defined Bermingham Northeast Deep zone. The ramp will provide access to higher grade cut and fill stopes on the 1120 level.
Alexco has several other deposits at Keno Hill with resource estimates. They are the Bellekeno, Lucky Queen, Flame & Moth, and Creek. The property has a total of 4.3 million indicated tonnes grading 635 g/t silver (87.6 million contained oz. and 2.1 million inferred tonnes at 595 g/t silver (32.6 million contained ounces).
The 400-t/d mill treated 7,172 tonnes during the fourth quarter of 2021, a 1.4% increase over the third quarter. During December, additional mill throughput campaigns were completed, allowing the mill to reach a peak capacity of 22.5 dry tonnes per hour, 25% higher than the 18 t/d design capacity of the plant.
The majority of the ore milled was from the Bermingham deposit and a recovery rate of 91% silver was achieved. The silver content of the lead concentrate averaged 17.076 g/t.
(This article first appeared in the Canadian Mining Journal)
