The Keno Hill project is located in the Selwyn Basin in the Yukon Territory. The property lies within the Keno Hill District of polymetallic silver-lead-zinc veins, where there are more than thirty-five past producing mines. Alexco’s land package covers a substantial portion of the district with more than 200 km2.
A Preliminary Economic Assessment (“PEA”) released in 2017 looked at production from five deposits: Bermingham, Flame & Moth, Bellekeno, Lucky Queen and Onek. The study estimates a mine life of approximately eight years with average annual production of 3.5 million ounces of silver from approximately 143,000 tonnes of ore.
The Sandstorm royalty covers a portion of the Keno Hill claims around the Bellekeno and Bermingham deposits but the PEA mine plan does not include ore from the royalty ground. Exploration drilling has taken place on the royalty claims in recent years.
The royalty was acquired as part of a package of royalties purchased from Teck Resources in 2016.
A drilling program at the Bermingham deposit returned assay results of 12 metres of 1,019 g/t silver from 136.3 metres. In addition to its ongoing drill program, Alexco is working towards the final project permits.
An underground exploration decline was completed at Bermingham. A 5,000 metre underground drill program and 15,000 metre surface drill program commenced at the deposit.