Dec 4 2010
Alexco Resource Corp. (TSX:AXR)(NYSE Amex:AXU) ("Alexco" or the "Company") is pleased to announce that it has entered into lead and zinc concentrate off-take agreements with Glencore Ltd., Stamford ("Glencore"), a branch of a wholly owned subsidiary of the Swiss-based international natural resources group Glencore International AG.
The signing of these agreements with Glencore is coincident with the initiation of concentrate shipments from Alexco's newly commissioned Bellekeno silver-lead-zinc mine in the Keno Hill Silver District, Yukon.
Alexco and Glencore have entered into two off-take agreements, one for lead concentrate and a second for zinc concentrate. Both concentrates will be produced from Alexco's newly commissioned conventional flotation mill located approximately 4.5 kilometers from its silver-lead-zinc Bellekeno mine. Over the initial two year term of the off-take agreements, it is anticipated that approximately 42,800 tonnes of concentrate comprising 27,300 tonnes of lead concentrate and 15,500 tonnes of zinc concentrate will be shipped from Bellekeno for smelter treatment and refining. Nominal concentrate grades are anticipated to approximate 70% lead with more than 6,200 grams per tonne silver in the lead concentrate, and 54% zinc with over 300 grams per tonne silver in the zinc concentrate. There are no notable deleterious elements in either concentrate. The off-take agreements also provide for payment of Indium, once commercial concentrate grades for Indium are demonstrated.
"We are very excited to have Glencore as our concentrate off-take partner at Keno Hill. As one of the world's largest suppliers of a wide range of commodities and raw materials to industrial consumers, Glencore brings a wealth of experience and global reach to the project, ensuring that Bellekeno concentrates will be marketed to return maximum benefit to Alexco and our shareholders," said Clynton Nauman, Alexco's President and CEO.
Keno Hill Silver District History
Between 1921 and 1988, the Keno Hill Silver District produced more than 217 million ounces of silver with average grades of 40.5 ounces per ton silver, 5.6% lead and 3.1% zinc (Yukon Government's Minfile database). The historical production grades would rank Keno Hill in the top 3% by grade of today's global silver producers. The Keno Hill district is the second-largest historical silver producer in Canada.
Source: http://www.alexcoresource.com/