Alexco Intersects 1,483 g/t Silver Over 6.18 Meters at Flame and Moth

Alexco Resource (TSX:AXR,NYSEMKT:AXU) released 2014 surface drilling results on Tuesday, reporting an assay of 1,483 grams per tonne (g/t) silver and 0.45 g/t gold over 6.18 meters true width from 209.7 meters at the Flame and Moth deposit at the Keno Hill Silver District.

That includes 0.47 meters true width from 211.32 meters with an assay of 4,390 g/t silver and 0.79 g/t gold, as well as 0.68 meters true width from 214.35 meters with an assay of 3,720 g/t silver and 0.66 g/t gold.

The program totaled 15,133 meters across 59 holes that were specifically focused on the northern and down-plunge areas of the northern Christal Zone, as well as on southern extensions of the Lightning Zone.

The news sent the company’s share price soaring 25.81 percent across Tuesday and Wednesday, and it ultimately closed at $0.78 on Wednesday.

“The high-grade results from the 2014 Flame area drilling program provide further confidence in the grade and geometry upside of the silver resource, especially as it may relate to optimization of initial development and mining activity in the Flame & Moth area,” said Clynt Nauman, president and CEO of the company. “We’ve also now confirmed a strongly developed southwestern down-plunge extension of the deposit, which can be further explored from underground at some point in the future.”

Alexco also received assays from the Flame Southwest Lightning Zone and the Flame West Vein, providing a further boost to the announcement.

Back in December, Alexco updated a positive preliminary economic assessment for expanded silver production at the Keno Hill Silver District. It looks at the construction and operation of a new underground mine at the Flame and Moth deposit.

The PEA envisages an after-tax internal rate of return of 22.1 percent with an after-tax net present value of $23.3 million.

Securities Disclosure: I, Nick Wells, hold no direct investment in any of the companies mentioned in this article.