Alexco Resource Corp. (AXU) experienced a decrease of 5.88% in aftermarket following the announcement of an $8 million deal. However, the last trading session closed at $1.7 with an increase of 1.19%.
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$8 Million Deal – Latest News
On 18th January 2022, AXU announced that it had signed an agreement with the underwriters. According to the agreement, the profits from the sale of the CEE Flow-Through Shares will be used to fund exploration on the Keno Hill property, as allowed by the Tax Act.
Moreover, the proceeds from the sale of the CDE Flow-Through Shares will be used to pay for development costs on the Keno Hill project, as allowed by the Tax Act. Effective on or before December 31, 2022, the Company shall cease all CEE qualifying expenses in support of CEE Flow-Through Shares customers and all CDE qualifying expenditures in favor of CDE Flow-Through Shares subscribers.
Expanded mineral resource estimate – What is it all about?
On 18th January 2022, AXU announced that the Company’s Bermingham deposit has been upgraded. The Bermingham indicated mineral resource estimate has been increased from 33.0 million to 47.2 million ounces of contained silver. Moreover, at a grade of 735 g/t Ag, the inferred mineral resource estimate has grown from 11.7 million to 19.9 million ounces of contained silver.
The overall indicated mineral resource estimate for the Company’s two principal mining centers in the District, the Bermingham and Flame & Moth deposits, grew by 24 percent from 59.8 M ounces to 74.1 M ounces of contained silver. Lastly, the inferred mineral resource estimate of contained silver grew by 51% from 15.9 M ounces to 24.1 M ounces. As a consequence of these modifications, Alexco is re-evaluating the life of mine plan for both deposits, with the goal of potentially increasing the combined estimated 33.8 million ounce silver mineral reserve.
So what?
As the Bermingham deposit grows in size and grade while remaining open, it’s becoming clear that AXU is operating in one of the Keno Hill district’s most prolific and large mineralized systems. There is still a lot of work to be done on Galena Hill, from near-mine deposit extension drilling to kilometer-scale exploration along strike. Moreover, the Bermingham deposit is already one of the larger discoveries in the KHSD, even at its current interim finding and early production stage.
