Vancouver — Investors drove the stock of Alexco Resources (AXR-T, AXORF-O) to a new 52-week high of $5.10 recently, encouraged by the latest results from a Yukon silver project managed by the company’s biggest shareholder, NovaGold Resources (NG-T, NG-X).
After Alexco released results from three of nine holes, which are probing the Yukon’s historic Keno Hill silver district, its shares closed at $5.05, up 70 in one day. The shares have doubled in value from around $2.60 in late October.
Highlights from drilling in the vicinity of Bellekeno, one of several past-producing mines in the Keno Hill district include the following:
* a 2-metre interval (starting at 399.3 metres depth) averaging 4.6 kg per tonne silver, 63.4% lead, and 7.5% zinc in hole DDH K06-011;
* a 1.6-metre intersection (from 364.4 metres) averaging 2.5 kg silver, 0.97 gram gold, 10% lead, and 24% zinc in hole DDH K06-016; and
* a 2.2-metre interval (from 409.6 metres) averaging 1.4 kg silver, 1.28 grams gold and 30.8% zinc in hole DDH K06-020.
In a statement, Alexco described the results as “impressive, with high-grade silver, and base metal intervals encountered in all three of the drill holes.”
NovaGold is drilling in an old mining camp that has historically ranked as one of the highest-grade silver producers in North America.
Between 1921 and 1988, it produced more than 217 million oz. silver with average grades of 40.5 oz. silver, 5.6% lead and 3.14% zinc. That puts Keno Hill among the top 3% (by grade) of silver mines operating today.
The exploration lands controlled by Alexco contain numerous documented mineral deposits and prospects, including 35 mines with a history of production.
The company said two drill rigs are dedicated to probing southwestern extensions of the former Bellekeno mine.
By the end of this month, it expects to have added another 11,500 metres to the 10,500 metres completed so far.
Next year, it anticipates having four rigs working on the Keno Hill project, where it hopes to complete 30,000 metres in the first six months of the year.
The plan is to establish an inferred resource of at least 20 million oz. at Bellekeno, said Alexco, a 19%-owned affiliate of NovaGold.
The Keno Hill mining district is located in the Yukon, 330 km north of Whitehorse near the villages of Mayo and Keno City and lies within the traditional territory of the Nacho Nyak Dun First Nation.
Operations closed down in 1989 when Keno Hill Mines went bankrupt due to low metal prices and difficult labour conditions. But Alexco was able to acquire the properties from a receiver.
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