(All amounts in CDN$ unless otherwise
indicated)
VANCOUVER, BC, May 12, 2022
/CNW/ - Alexco Resource Corp. (NYSE American: AXU)
(TSX: AXU) ("Alexco" or the "Company") today reports
financial results for the quarter ended March 31, 2022 ("Q1 2022"). The
Company also provides an update on capital development projects,
scale-up of mining operations, and exploration activities at Keno
Hill.
- Mining Operations - Ramp-up of mining and milling operations
continued in Q1 2022:
-
- At the Bermingham mine, longhole stoping of ore continued at
the 1150 level. In Q1 2022, 4,575 ore tonnes were mined from the
Bermingham mine, of which 1,666 ore tonnes were mined in March.
- At the Flame & Moth mine, the primary ramp reached the
first two ore access levels with initial cut and fill ore
production achieved in January 2022.
In Q1 2022, 3,517 ore tonnes were mined of which 1,972 ore tonnes
were mined in March. In addition, in Q1 2022, a primary ventilation
and secondary escape raise was completed and will be fully
operational in Q2 2022, allowing for expanded activity underground
as scheduled.
- Exploration:
-
- In May 2022, the Company intends
to commence a 15,000 meter surface exploration drilling program
primarily stepping out along favourable permissive structural and
stratigraphic trends adjacent to and in the vicinity of the
Bermingham deposit. This work will be focused to the west in the
vicinity of the Coral Wigwam deposit, and to the northeast towards
the Hector-Calumet deposit, as well as broader exploration
drilling in other areas.
- On January 18, 2022, the Company
reported the expansion of the Bermingham Indicated Resource (see
press release dated January 18, 2022,
entitled "Alexco Reports 43% Expansion of Bermingham Indicated
Resource to 47 Million Ounces of Silver at 939 Grams per Tonne;
Remains Open").
- Other Activities Subsequent to Period End:
-
- On April 13, 2022, the Company
completed a non-brokered private placement offering of 7,473,495
common shares at a price of $1.75 per
share, resulting in gross proceeds of $13,078,616.
- On April 29, 2022, the Company
sold to Victoria Gold Corp. ("Victoria") all of its rights,
benefits and interests in and to the remaining option consideration
payable to Alexco by Banyan Gold Corp. under the option agreement
with Banyan in exchange for 447,142 shares of Victoria. On
May 4, 2022, the Victoria shares were sold for net proceeds of
$6,000,000 after selling costs and
commissions.
Key Performance Metrics
Operations
|
Q1
2022
|
Q4
2021
|
∆-Q4 vs
Q1
|
|
|
|
|
Ore tonnes
mined
|
8,092
|
4,996
|
62%
|
Ore tonnes
milled
|
7,609
|
7,091
|
7%
|
Mill throughput (tonnes
per operating day)1
|
317
|
253
|
25%
|
Ore tonnes
stockpiled
|
1,849
|
1,366
|
35%
|
Underground development
meters
|
81
|
195
|
(58%)
|
|
|
|
|
Head
grade
|
|
|
|
Silver (grams per tonne ("g/t"))
|
357
|
547
|
(35%)
|
Lead
|
1.1%
|
3.1%
|
(65%)
|
Zinc
|
2.4%
|
2.7%
|
(11%)
|
|
|
|
|
Recoveries
|
|
|
|
Silver
|
93%
|
96%
|
(3%)
|
Lead in lead concentrate
|
87%
|
90%
|
(3%)
|
Zinc in zinc concentrate
|
63%
|
62%
|
2%
|
|
|
|
|
Concentrate
production and grades
|
|
|
|
Lead concentrate produced (tonnes)
|
227
|
351
|
(35%)
|
Silver grade (g/t)
|
10,369
|
10,179
|
2%
|
Lead grade
|
33%
|
57%
|
(42%)
|
Zinc concentrate produced (tonnes)
|
247
|
240
|
3%
|
Silver grade (g/t)
|
774
|
568
|
36%
|
Zinc grade
|
47%
|
50%
|
(6%)
|
|
|
|
|
Contained metal in
concentrate produced
|
|
|
|
Silver (ounces)
|
81,725
|
119,177
|
(31%)
|
Lead (pounds)
|
165,086
|
436,877
|
(62%)
|
Zinc (pounds)
|
255,515
|
262,897
|
(3%)
|
|
|
|
|
Financials
(expressed in
thousands of Canadian dollars,
except per share amounts)
|
Q1
2022
|
Q4
2021
|
|
|
|
|
|
Revenues – Mining operations
|
2,052
|
2,814
|
|
Revenues – Reclamation management
|
744
|
453
|
|
Operating Loss
|
(6,251)
|
(10,646)
|
|
Cash and cash equivalents
|
5,637
|
9,933
|
|
Net
Working Capital2
|
(7,072)
|
1,389
|
|
Adjusted Net Loss2
|
(5,704)
|
(6,976)
|
|
Net
Income (Loss)
|
(11,316)
|
(9,069)
|
|
|
|
|
|
Shareholders
|
|
|
|
Basic and diluted net income (loss) per common
share
|
(0.07)
|
(0.06)
|
|
Adjusted basic net loss per common
share2
|
(0.04)
|
(0.05)
|
|
Adjusted diluted net loss per common
share2
|
(0.04)
|
(0.04)
|
|
|
|
|
|
Total assets3
|
212,461
|
210,362
|
|
Total non-current liabilities
|
6,559
|
7,437
|
|
|
|
|
|
1.
|
Mill throughput (tonnes per operating day) is based
on the number of days that the mill was operational during the
period. The mill was operational for 24 days and 36 days during Q1
2022 and Q1 2021, respectively.
|
2.
|
See "Non-GAAP Measures" in the MD&A for the three
month period ended March 31, 2022.
|
3.
|
Total assets increased primarily due to expenditures
on mineral properties, plant and equipment.
|
|
|
"We have seen improvements and better results recently with our
underground activities at Keno Hill," said Clynt Nauman, Chairman and CEO of Alexco, "but
with that said, we remain below where we need to be for development
rates, equipment availability, and ore extraction rates. In terms
of providing a formal outlook for the balance of 2022, the Keno
Hill operation needs an additional period of time to confirm
improvement in supply chain efficiencies and mechanical
availability of underground equipment, which is the primary driver
for accelerated ramp up progress. The Company is evaluating a
number of production and operating scenarios keying off supply line
risk and availability of maintenance technicians as the basis for
forecasting underground development rates with the objective of
providing further clarity and confidence on reaching our targeted
400 tonnes per day mill throughput. Therefore, while the
Company had previously anticipated providing formal guidance for
the balance of 2022, we are deferring such guidance until such time
when we can confidently guide the market. I am hopeful that
with another several weeks of performance under our belts, we will
be in a much better position to update the market."
Conference Call for Q1 2022
Results
Alexco management will discuss the results during an audio
webcast conference call on Friday, May 13,
2022 at 1:00 pm Eastern Time
(10:00 am Pacific Time).
To participate in the live call, please use one of the following
methods:
Dial toll free from Canada or the
US: 1-800-319-4610
Dial from outside Canada or the
US: 1-604-638-5340
Confirmation Code#:
Ask to join the Alexco
conference call
Live audio webcast:
https://services.choruscall.ca/links/alexco20220513.html
Participants should connect five to ten minutes before the call.
The conference call will be recorded, and an archived audio webcast
will be available at www.alexcoresource.com shortly after the
call.
Qualified Persons
The disclosure in this news release of scientific and technical
information regarding exploration projects on Alexco's mineral
properties has been reviewed and approved by Alan McOnie, FAusIMM, while that regarding mine
development and operations has been reviewed and approved by
Sebastien D. Tolgyesi, P.Eng.,
P.Geo., Keno Hill Operations Manager, both of whom are Qualified
Persons as defined by National Instrument 43-101
– Standards of Disclosure for Mineral Projects.
About Alexco
Alexco is a Canadian primary silver company that owns and
operates the majority of the historic Keno Hill Silver District, in
Canada's Yukon Territory, one of the highest-grade
silver mines in the world. Alexco started concentrate production
and shipments in 2021 and is currently advancing Keno Hill toward
steady state production. Upon reaching commercial production, Keno
Hill is expected to produce an average of approximately 4.4 million
ounces of silver per year contained in high quality lead/silver and
zinc concentrates. Keno Hill retains significant potential to grow
and Alexco has a long history of expanding the operation's mineral
resources through successful exploration.
Website: www.alexcoresource.com
Forward-Looking
Statements
Some statements ("forward-looking statements") in this news
release contain forward-looking information concerning Alexco's
anticipated results and developments in Alexco's operations in
future periods, planned exploration and development of its
properties, plans related to its business and other matters that
may occur in the future, made as of the date of this news
release. Forward-looking statements may include, but are not
limited to, statements with respect to the future remediation and
reclamation activities, future mineral exploration, the estimation
of mineral reserves and mineral resources, the realization of
mineral reserve and mineral resource estimates, future mine
construction and development activities, future mine operation and
production, the timing of activities and reports, the amount of
estimated revenues and expenses, the success of exploration
activities, permitting time lines, requirements for additional
capital and sources and uses of funds. Forward-looking statements
are subject to a variety of known and unknown risks, uncertainties
and other factors, which could cause actual events or results to
differ from those expressed or implied by the forward-looking
statements. Such factors include, among others, risks related to
actual results and timing of exploration and development
activities; actual results and timing of mining activities; actual
results and timing of environmental services activities; actual
results and timing of remediation and reclamation activities;
conclusions of economic evaluations; changes in project parameters
as plans continue to be refined; future prices of silver, gold,
lead, zinc and other commodities; possible variations in mineable
resources, grade or recovery rates; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; First Nation rights and title;
continued capitalization and commercial viability; global economic
conditions; competition; and delays in obtaining governmental
approvals or financing or in the completion of development
activities. Forward-looking statements are based on certain
assumptions that management believes are reasonable at the time
they are made. In making the forward-looking statements included in
this news release, Alexco has applied several material assumptions,
including, but not limited to, the assumption that Alexco will be
able to raise additional capital as necessary, that the proposed
exploration and development will proceed as planned, and that
market fundamentals will result in sustained silver, gold, lead and
zinc demand and prices. There can be no assurance that
forward-looking statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Alexco expressly disclaims any
intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise, except as otherwise required by applicable securities
legislation.
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content:https://www.prnewswire.com/news-releases/alexco-announces-first-quarter-2022-results-301546607.html
SOURCE Alexco Resource Corp.