Alexco Resource Corp.
TSX : AXR
NYSE MKT : AXU

Alexco Resource Corp.

January 20, 2015 04:00 ET

Alexco Intersects 1,483 Grams Per Tonne Silver (47.7 Ounces Per Tonne) Over 6.2 Meters True Width at Flame & Moth Deposit in the Keno Hill Silver District

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 20, 2015) - Alexco Resource Corp. (NYSE MKT:AXU)(TSX:AXR) today announced final results from the 2014 surface drilling program in the vicinity of the Flame & Moth deposit which is centrally located within the Keno Hill Silver District in Canada's Yukon Territory. The infill, definition and extension drilling totaled 15,133 meters in 59 holes focused on the northern and down-plunge areas of the northern Christal Zone, and on southern extensions of the southerly Lightning Zone.

Infill and extension drilling in 22 holes totaling 5,523 meters in and around the northerly Christal Zone returned results of a maximum true width of 13.3 meters (average of 6.5 meters) of mineralization, with a best composite silver assay of 1,483 grams per tonne silver (g/t) (47.7 ounces per tonne (opt)) over 6.2 meters true width. Drilling was completed to 20 - 30 meter centers to confirm mineralization continuity and grade, and is expected to positively affect the overall resource model for the Christal Zone area.

To the southwest of the southerly Lightning zone, down-plunge extension drilling in 14 holes (6,154 meters) included a best result of 843 g/t (27.1 opt) silver over 3.3 meters true width proximal to the existing resource. Drilling also extended the overall strike length of the mineralized zone an additional 150 meters to the southwest but at lower grade. The total drilled strike length of the Flame & Moth vein system in the area about the existing resource now measures approximately 1,150 meters.

Alexco President and Chief Executive Officer Clynt Nauman said, "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. 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. Meantime, Flame & Moth remains one of the best discoveries in the Keno Hill Silver District in the last 50 years and furthermore, there is significant exploration upside in the highly mineralized corridor within which the Flame & Moth deposit is centrally located."

Drill Hole Highlights

Final 2014 exploration drill results include the following significant composite or individual assay intervals (above 30 g/t silver) as shown in Table 2:

Flame Christal Zone Resource Infill

  • K-14-0553 intersected mineralized vein material over 6.18 meters true width from 209.70 meters with a composite assay of 1,483 g/t (47.7 opt) silver, 0.45 g/t gold; including 0.47 meters true width from 211.32 meters with an assay of 4,390 g/t (141.1 opt) silver, 0.79 g/t gold, and 0.68 meters true width from 214.35 meters with an assay of 3,720 g/t (119.6 opt) silver, 0.66 g/t gold.
  • K-14-0554 intersected mineralized vein material over 5.19 meters true width from 201.5 meters with a composite assay of 1,111 g/t (35.7 opt) silver, 0.63 g/t gold; including 0.73 meters true width from 203.0 meters with an assay of 2,650 g/t (85.2 opt) silver, 0.43 g/t gold.
  • K-14-0557 intersected mineralized vein material over 5.27 meters true width from 220.4 meters with a composite assay of 1,018 g/t (32.7 opt) silver, 0.32 g/t gold; including 0.84 meters true width from 221.10 meters with an assay of 1,760 g/t (56.6 opt) silver, 0.45 g/t gold.
  • K-14-0558 intersected mineralized vein material over 6.06 meters true width from 209.00 meters with a composite assay of 963 g/t (31.0 opt) silver, 0.71 g/t gold; including 0.47 meters true width from 212.14 meters with an assay of 3,040 g/t (97.7 opt) silver, 2.58 g/t gold.
  • K-14-0566 intersected mineralized vein material over 5.26 meters true width from 187.15 meters with a composite assay of 1,356 g/t (43.6 opt) silver, 0.52 g/t gold; including 0.65 meters true width from 189.65 meters with an assay of 6,270 g/t (201.6 opt) silver, 1.10 g/t gold, and 0.34 meters true width from 192.62 meters with an assay of 4,600 g/t (147.9 opt) silver, 1.00 g/t gold.

Flame Southwest Lightning Zone

  • K-14-0528 intersected mineralized vein material over 3.30 meters true width from 234.40 meters with a composite assay of 843 g/t (27.1 opt) silver, 0.38 g/t gold; including 0.36 meters true width from 236.30 meters with an assay of 3,040 g/t (97.7 opt) silver, 1.17 g/t gold, and 0.36 meters true width from 236.85 meters with an assay of 2,710 g/t (87.1 opt) silver, 0.99 g/t gold.
  • K-14-0530 intersected mineralized vein material over 3.05 meters true width from 248.21 meters with a composite assay of 510 g/t (16.4 opt) silver, 0.15 g/t gold; including 0.43 meters true width from 248.40 meters with an assay of 2,390 g/t (76.8 opt) silver, 0.64 g/t gold; and also 0.30 meters true width from 280.62 meters with an assay of 2,140 g/t (68.8 opt) silver, 0.03 g/t gold.

Flame West Vein

  • K-14-0515 intersected mineralized vein material over 1.30 meters interval from 184.70 meters with a composite assay of 661 g/t (21.2 opt) silver, 0.22 g/t gold; including 0.40 meters interval from 184.70 meters with an assay of 1,830 g/t (58.8 opt) silver 0.61 g/t gold.

The Flame & Moth deposit has been previously identified to comprise 1,378,000 tonnes at 516 g/t silver (22.9 million ounces) of indicated resource and 107,000 tonnes at 313 g/t silver (1.1 million ounces) of inferred resource. The deposit encompasses a northerly Christal zone (containing approximately 7.9 million ounces of indicated and 0.6 million ounces inferred silver resource), and the larger southerly Lightning zone (containing approximately 14.9 million ounces of indicated and 0.5 million ounces of inferred silver resource), separated by approximately 90 meters of strike-slip movement along the Mill Fault (see news release dated January 31, 2013 "Alexco Expands Flame & Moth Indicated Resource to 22.9 Million Ounces of Silver; Resource Grade Increased, Deposit Remains Open").

In addition to the extension and infill drilling pursuant to a re-estimation of the Flame & Moth resource, other drilling in the vicinity of the Flame & Moth deposit was conducted as outlined below:

  1. A fence of step-out drill holes approximately 500 meters to the northeast of the Flame deposit located indications of mineralization which could be interpreted as a possible extension of the Flame structure. Although the correlation cannot be confirmed without additional drilling, the structure is inferred to continue in this direction within the favorable Keno Hill quartzite host rock lithology, with the potential for the discovery for additional mineralization similar to the Lightning and Christal zones. In total, silver mineralization has now been identified over 1,700 meters of inferred strike length along the Flame structure.
  2. Additional drilling (four holes, 977 meters) of the previously identified Flame West vein (formerly known as the Bulldozer vein) that lies subparallel to the Flame vein has confirmed this occurrence to be within a significant mineralized structure with a best 2014 intercept of 21.24 opt silver over a 1.3 meter interval. However, continuity of higher grade mineralization has not been established and the definition of the northern extension of this structure through the Christal Lake Corridor remains a priority exploration target.
  3. Geotechnical drilling of 249 meters in five holes was completed along the proposed trace of the Flame & Moth decline (see news release dated December 23, 2014 entitled "Alexco Updates Positive Preliminary Economic Assessment for Expanded Silver Production from Keno Hill Silver District, Yukon").
  4. Three drill holes were also completed along the Christal Lake corridor.

It is notable that a number of holes drilled down-plunge of the Lightning Zone intercepted broad zones (to approximately 5.0 meters) of strongly mineralized but lower silver grade intervals including the presence of massive sulfides indicating continuation of a robust mineral system to depth to the southwest. Further exploration of this area will be undertaken as part of future underground activity. Updated composite assay tables, along with a drill hole location map and a long section plot for 2014 drill holes completed at the Flame & Moth prospect are appended to this release, and are also available for review on the Company's website at www.alexcoresource.com.

Alexco is currently planning a 2015 exploration program to follow up successful results returned from the 2014 surface drilling program. Focus in 2015 will likely be on Bermingham where robust silver mineralization encountered in 2014 appears to be vectoring toward a stratigraphic - structural setting similar to the historic Hector Calumet deposit (see news release dated November 5, 2014 entitled "Alexco Drills Best Hole Ever: Intersects 5,667 Grams Per Tonne Silver Over 6.39 Meters (true width) at Bermingham; Mineralization Extended and Remains Open"). Additionally, 2015 exploration may address shallow surface drilling alternatives in the Christal Lake corridor where several areas of satellitic silver mineralization have been identified from 2014 work.

The 2014 exploration drill program and sampling protocol has been reviewed, verified and compiled by Alexco's geologic staff under the supervision of Alan McOnie, Vice President, Exploration for Alexco and a Qualified Person as defined by National Instrument 43-101. A rigorous quality control and quality assurance protocol is used on the project, including blank, duplicate and standard reference samples in each batch of 20 samples delivered to the assay lab. Drill core samples were shipped to ALS Minerals Labs at Whitehorse, Yukon Territory for preparation, with fire assay, multi-element ICP analyses and ore grade over limits completed at the ALS Minerals facility in North Vancouver, British Columbia. The disclosure of scientific and technical information about Alexco's mineral projects contained in this news release has also been reviewed and approved by Mr. McOnie.

About Alexco

Alexco Resource Corp. owns the Bellekeno silver mine, one of several mineral properties held by Alexco which encompass substantially all of the historical Keno Hill Silver District located in Canada's Yukon Territory. Bellekeno, which commenced commercial production at the beginning of calendar year 2011, was Canada's only operating primary silver mine from 2011 to 2013. Alexco is currently undergoing an interim suspension of operations at Keno Hill in order to decrease costs and reposition the District for long-term, sustainable operations. Between 1921 and 1988, the Keno Hill Silver District was a world-class silver producer, with more than 217 million ounces of silver produced at average grades of 40.5 ounces per ton silver, 5.6% lead and 3.1% zinc (Yukon Government's Minfile database). These historical production grades would rank Keno Hill in the top 3% by grade of today's global silver producers. Employing a unique business model, Alexco also provides mine-related environmental services, remediation technologies and reclamation and mine closure services to both government and industry clients through the Alexco Environmental Group, its wholly-owned environmental services division.

Some statements ("forward-looking statements") in this news release contain forward-looking information concerning the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future, made as of the date of this news release. Forward-looking statements may include, but are not limited to, statements with respect to the amendment to the Silver Purchase Agreement, its impact on Alexco and the Keno Hill Silver District and the parties' rights, obligations and conditions thereunder, including Alexco's condition to pay Silver Wheaton $20 million and obtain regulatory approvals for any financing related thereto, future remediation and reclamation activities, future mineral exploration, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and mineral resource estimates, future mine construction and development activities, future mine operation and production, the anticipated timing of making a production decision in the Eastern Keno Hill Silver District including recommencement of production at the Bellekeno mining operation, the timing of activities and reports, the amount of estimated revenues and expenses, the success of exploration activities, permitting time lines, requirements for additional capital and sources and uses of funds. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Such factors include, among others, risks related to the parties' performance under the amendment to the Silver Purchase Agreement, including Alexco's ability to raise additional capital to make the $20 million payment to Silver Wheaton to meet its condition thereunder; success and timing of regulatory approvals; actual results and timing of exploration and development activities; actual results and timing of mining activities; actual results and timing of environmental services activities; actual results and timing of remediation and reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of silver, gold, lead, zinc and other commodities; possible variations in mineable resources, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; First Nation rights and title; continued capitalization and commercial viability; global economic conditions; competition; and delays in obtaining governmental approvals or financing or in the completion of development activities. Forward-looking statements are based on certain assumptions that management believes are reasonable at the time they are made. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to, the assumption that the Company will be able to raise additional capital to make the $20 million payment to Silver Wheaton under the amendment, that regulatory approval will be obtained in a timely fashion, that the proposed exploration and development will proceed as planned, and that market fundamentals will result in sustained silver, gold, lead and zinc demand and prices. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.

APPENDICES

Table 1

Location of 2014 Flame and Moth area drill holes

Map Projection UTM NAD83Z8

Area Hole Easting
(m)
Northing
(m)
Elevation
(m)
Length
(m)
Surface
Azimuth
Surface
Dip
Flame NE K-14-0507 484,677.07 7,087,255.94 923.51 394.20 290 -45
K-14-0508 * 484,505.06 7,087,406.00 914.64 77.00 290 -45
K-14-0509 484,288.20 7,087,484.27 912.09 380.24 288 -45
K-14-0510 484,509.92 7,087,410.33 914.52 342.00 290 -45
Flame West K-14-0513 483,294.66 7,086,582.09 871.69 243.00 300 -45
K-14-0514 483,284.28 7,086,579.28 872.46 243.00 275 -45
K-14-0515 483,143.08 7,086,322.72 879.20 251.00 322 -45
K-14-0517 483,143.84 7,086,324.74 878.89 240.00 291 -50
Christal Corridor K-14-0512 483,758.21 7,086,714.72 892.87 239.00 306 -55
K-14-0520 483,599.93 7,086,623.91 882.18 441.40 322 -50
K-14-0522 483,816.34 7,087,428.32 867.76 355.00 280 -45
Flame SW K-14-0525 483,753.01 7,086,331.62 906.61 233.00 293 -80
K-14-0526 483,893.20 7,085,924.82 956.79 642.00 285 -62
K-14-0527 483,755.14 7,086,330.15 906.86 239.00 339 -72
K-14-0528 483,792.22 7,086,333.09 911.21 266.00 285 -78
K-14-0530 483,793.33 7,086,333.76 911.22 284.00 312 -82
K-14-0532 483,898.10 7,085,925.27 956.75 579.00 293 -56
K-14-0533 * 483,791.00 7,086,341.00 910.00 30.03 342 -74
K-14-0534 483,795.63 7,086,333.75 911.42 269.00 342 -74
K-14-0536 483,805.11 7,086,324.96 911.73 311.00 345 -75
K-14-0540 483,928.75 7,086,232.75 930.53 406.00 290 -60
K-14-0541 * 483,929.00 7,086,230.00 930.00 23.00 275 -54
K-14-0543 483,926.41 7,086,229.18 930.14 380.00 275 -54
K-14-0544 * 483,919.64 7,085,908.91 958.94 165.00 272 -67
K-14-0545 483,926.88 7,086,229.25 930.19 449.00 256 -57
K-14-0546 483,917.30 7,086,121.87 934.27 506.00 258 -55
K-14-0547 * 483,920.00 7,085,913.00 960.00 149.00 270 -49
K-14-0548 483,917.89 7,086,123.30 934.46 508.00 267 -68
K-14-0549 483,924.53 7,085,913.55 958.79 715.41 270 -70
Christal Infill K-14-0550 484,072.39 7,086,585.89 924.09 236.92 292 -60
K-14-0551 484,072.69 7,086,586.02 924.14 254.00 297 -66
K-14-0552 * 484,072.00 7,086,586.00 924.00 10.50 310 -56
K-14-0553 484,073.41 7,086,586.84 924.07 242.00 310 -56
K-14-0554 484,072.61 7,086,587.18 923.88 218.90 308 -48
K-14-0555 484,073.82 7,086,586.36 924.03 284.00 308 -68
K-14-0556 * 484,119.00 7,086,802.00 926.00 77.00 250 -47
K-14-0557 484,073.81 7,086,587.35 924.03 242.00 317 -57
K-14-0558 484,119.41 7,086,802.09 926.26 230.00 250 -66
K-14-0559 484,074.17 7,086,587.04 924.11 260.00 317 -65
K-14-0560 484,118.69 7,086,802.58 926.29 210.00 261 -55
K-14-0561 484,073.05 7,086,588.05 924.08 221.00 324 -45
K-14-0562 484,073.61 7,086,587.33 924.08 231.50 323 -55
K-14-0563 484,119.28 7,086,802.68 926.32 212.00 261 -66
K-14-0564 484,071.00 7,086,586.00 924.00 220.20 299 -56
K-14-0565 484,119.14 7,086,802.62 926.30 203.33 266 -62
K-14-0566 484,118.81 7,086,801.93 926.20 205.00 250 -55
K-14-0567 484,072.79 7,086,584.82 923.96 272.00 292 -69
K-14-0568 484,070.58 7,086,585.17 923.99 299.00 322 -67
K-14-0569 484,070.33 7,086,585.96 924.03 263.00 325 -58
K-14-0570 484,162.17 7,086,645.42 930.19 270.80 289 -47
K-14-0571 484,160.97 7,086,645.47 930.13 263.00 298 -45
K-14-0572 484,161.75 7,086,645.11 930.14 305.00 298 -56
K-14-0573 484,161.33 7,086,645.15 930.24 292.00 307 -50
Lightning Geotech K-14-0511 483,779.85 7,086,654.03 897.42 38.00 0 -90
K-14-0516 483,802.44 7,086,674.36 894.56 77.00 0 -90
K-14-0518 484,113.91 7,086,698.13 923.89 53.00 0 -90
K-14-0519 484,114.15 7,086,753.75 921.02 40.30 0 -90
K-14-0519a * 484,117.00 7,086,749.00 921.00 30.00 0 -90
K-14-0521 484,118.87 7,086,804.37 926.33 11.50 0 -90
* Abandoned

Table 2

2014 Flame area 30 g/t Ag assay composites

(with up to 2 meters internal dilution)

Flame Christal Zone Resource Infill

Hole From
(m)
To
(m)
Inter-
val
(m)
True
Width
(m)
Ag
(g/t)
Ag
(oz/
tonne)
Ag
(oz/ton)
Au
(g/t)
Pb
(%)
Zn
(%)
K-14-0550 217.85 224.98 7.13 6.10 562 18.06 16.38 0.18 2.38 2.13
including 220.60 221.00 0.40 0.34 831 26.72 24.24 0.23 5.61 5.48
221.00 221.95 0.95 0.81 2280 73.30 66.50 0.38 6.03 3.56
221.95 222.50 0.55 0.47 1120 36.01 32.67 0.27 3.50 1.85
222.50 223.00 0.50 0.43 660 21.22 19.25 0.62 3.80 2.53
228.00 228.50 0.50 0.43 43 1.37 1.24 0.04 0.40 0.70
K-14-0551 235.03 245.50 10.47 8.33 195 6.28 5.70 0.19 0.78 3.79
K-14-0553 209.70 216.73 7.03 6.18 1483 47.69 43.26 0.45 15.01 3.62
including 211.32 211.85 0.53 0.47 4390 141.14 128.04 0.79 51.50 4.85
212.27 212.88 0.61 0.54 1160 37.29 33.83 0.44 1.90 1.45
213.65 214.35 0.70 0.62 2830 90.99 82.54 0.90 21.27 7.90
214.35 215.12 0.77 0.68 3720 119.60 108.50 0.66 34.94 8.54
215.12 215.67 0.55 0.48 1860 59.80 54.25 0.13 17.05 2.47
215.67 216.20 0.53 0.47 1855 59.64 54.10 0.24 14.90 5.83
K-14-0554 197.00 197.90 0.90 0.82 75 2.40 2.17 0.02 0.12 0.03
201.50 207.20 5.70 5.19 1111 35.73 32.42 0.63 14.19 7.21
including 203.00 203.80 0.80 0.73 2650 85.20 77.29 0.43 52.35 8.52
203.80 204.87 1.07 0.97 1875 60.28 54.69 0.82 32.83 8.76
204.87 205.50 0.63 0.57 1390 44.69 40.54 0.91 1.34 8.83
205.50 206.12 0.62 0.56 1325 42.60 38.65 1.81 2.22 6.63
K-14-0555 253.48 270.35 16.87 12.50 389 12.49 11.33 0.35 0.51 4.33
including 254.99 255.91 0.92 0.68 751 24.15 21.90 0.69 0.95 7.59
256.55 257.66 1.11 0.82 1550 49.83 45.21 0.89 1.05 10.50
257.66 258.35 0.69 0.51 1230 39.55 35.88 0.37 1.29 10.95
272.81 275.39 2.58 1.91 59 1.89 1.71 0.01 0.12 1.13
K-14-0557 220.40 226.65 6.25 5.27 1018 32.74 29.70 0.32 4.02 4.93
including 221.10 222.10 1.00 0.84 1760 56.59 51.33 0.45 4.49 5.05
222.10 222.65 0.55 0.46 961 30.90 28.03 0.14 1.66 3.03
222.65 223.65 1.00 0.84 1120 36.01 32.67 0.28 0.74 6.22
223.65 224.13 0.48 0.40 1790 57.55 52.21 0.27 29.00 3.80
224.13 224.80 0.67 0.57 1435 46.14 41.85 0.72 0.90 7.64
225.30 225.95 0.65 0.55 1250 40.19 36.46 0.32 6.40 4.01
229.10 229.40 0.30 0.25 71 2.30 2.08 0.05 0.19 5.19
K-14-0558 209.00 217.54 8.54 6.06 963 30.96 28.08 0.71 1.10 0.85
including 210.28 211.50 1.22 0.87 1210 38.90 35.29 0.61 2.96 0.71
212.14 212.80 0.66 0.47 3040 97.74 88.67 2.58 1.40 0.35
212.80 214.05 1.25 0.89 789 25.37 23.01 0.58 0.40 0.04
214.05 214.94 0.89 0.63 1695 54.50 49.44 1.13 0.87 0.08
214.94 216.14 1.20 0.85 1190 38.26 34.71 0.99 0.51 0.57
222.74 223.53 0.79 0.56 111 3.57 3.24 0.04 0.25 1.25
K-14-0559 240.95 255.20 14.25 11.14 475 15.26 13.85 0.64 1.21 2.49
including 240.95 241.45 0.50 0.39 778 25.01 22.69 3.48 0.79 0.06
241.45 241.90 0.45 0.35 1450 46.62 42.29 0.30 15.60 2.26
242.70 243.25 0.55 0.43 641 20.61 18.70 0.92 5.00 2.88
243.65 244.70 1.05 0.82 693 22.28 20.21 1.99 0.77 2.97
244.70 245.55 0.85 0.66 878 28.23 25.61 2.02 0.86 1.35
246.50 247.50 1.00 0.78 1140 36.65 33.25 0.21 0.31 5.77
251.35 251.90 0.55 0.43 675 21.70 19.69 0.63 0.78 1.59
K-14-0560 176.70 177.38 0.68 0.54 780 25.08 22.75 0.20 5.98 1.24
179.38 181.90 2.52 2.01 202 6.49 5.89 0.36 1.31 4.96
188.00 192.00 4.00 3.19 58 1.88 1.70 0.00 0.10 3.37
K-14-0561 206.56 207.82 1.26 1.11 406 13.06 11.85 0.35 1.04 4.02
including 207.40 207.82 0.42 0.37 788 25.33 22.98 0.38 1.55 7.51
K-14-0562 215.90 221.00 5.10 4.28 544 17.48 15.86 0.19 5.30 8.57
including 219.30 220.10 0.80 0.67 1360 43.72 39.67 0.19 18.60 15.75
220.10 221.00 0.90 0.75 648 20.83 18.90 0.60 0.95 1.18
K-14-0563 199.82 208.50 8.68 6.53 821 26.39 23.94 0.39 3.09 6.29
including 200.80 201.40 0.60 0.45 2950 94.84 86.04 1.01 4.48 1.16
201.40 202.00 0.60 0.45 774 24.88 22.58 0.99 8.69 7.08
202.00 202.36 0.36 0.27 1735 55.78 50.60 0.22 23.41 5.25
203.40 203.76 0.36 0.27 1480 47.58 43.17 0.44 5.89 8.94
205.71 206.27 0.56 0.42 1440 46.30 42.00 0.31 1.96 16.70
206.27 206.69 0.42 0.32 2570 82.63 74.96 0.50 1.90 13.60
206.69 207.04 0.35 0.26 1110 35.69 32.38 0.18 1.76 12.60
K-14-0564 206.00 207.00 1.00 0.92 69 2.22 2.01 0.29 0.10 0.14
211.00 214.95 3.95 3.62 864 27.77 25.19 1.39 0.94 7.31
including 211.00 212.00 1.00 0.92 1420 45.65 41.42 1.14 0.91 9.27
212.00 213.10 1.10 1.01 1190 38.26 34.71 2.19 0.86 4.75
K-14-0565 189.70 202.45 12.75 9.91 399 12.82 11.63 0.36 2.73 2.80
including 190.65 191.80 1.15 0.89 911 29.29 26.57 0.88 1.04 0.43
192.20 192.65 0.45 0.35 865 27.81 25.23 0.67 22.53 14.40
192.65 193.30 0.65 0.51 903 29.03 26.34 0.47 16.55 3.84
196.35 196.90 0.55 0.43 622 20.00 18.14 0.23 0.26 3.01
197.68 198.30 0.62 0.48 1250 40.19 36.46 0.35 1.99 9.70
K-14-0566 187.15 194.00 6.85 5.26 1356 43.60 39.56 0.52 6.00 4.18
including 187.50 188.00 0.50 0.38 1020 32.79 29.75 0.05 23.82 8.38
189.65 190.50 0.85 0.65 6270 201.59 182.88 1.10 3.34 17.65
190.50 191.00 0.50 0.38 677 21.77 19.75 0.31 0.27 0.62
191.72 192.62 0.90 0.69 736 23.66 21.47 0.88 1.66 1.00
192.62 193.06 0.44 0.34 4600 147.89 134.17 1.00 45.48 1.89
200.00 202.10 2.10 1.61 196 6.31 5.72 -0.01 3.62 1.21
K-14-0567 238.42 251.60 13.18 10.73 291 9.34 8.47 0.12 0.67 2.97
including 239.70 240.70 1.00 0.81 850 27.33 24.79 0.19 2.02 6.71
240.70 241.70 1.00 0.81 1090 35.04 31.79 0.33 2.04 7.27
243.54 244.34 0.80 0.65 722 23.21 21.06 0.37 1.03 5.91
K-14-0568 262.25 281.00 18.75 13.30 207 6.64 6.03 0.75 0.20 0.78
including 276.50 277.50 1.00 0.71 824 26.49 24.03 0.87 0.55 0.24
K-14-0569 238.55 246.20 7.65 5.82 581 18.68 16.95 0.54 2.36 1.08
including 240.25 240.70 0.45 0.34 1260 40.51 36.75 0.82 1.92 1.91
240.70 241.50 0.80 0.61 986 31.70 28.76 1.61 0.67 0.59
242.30 242.90 0.60 0.46 2720 87.45 79.33 0.39 23.54 3.81
258.60 260.70 2.10 1.60 88 2.83 2.57 0.07 0.45 1.36
K-14-0570 246.70 252.55 5.85 5.61 194 6.24 5.66 0.39 0.40 1.05
including 250.05 250.45 0.40 0.38 907 29.16 26.45 0.41 2.96 4.38
250.45 250.92 0.47 0.45 655 21.06 19.10 0.74 0.43 0.02
K-14-0571 246.50 250.70 4.20 4.09 513 16.49 14.96 0.96 0.64 2.47
including 247.55 247.95 0.40 0.39 1450 46.62 42.29 2.68 1.38 0.13
248.45 249.10 0.65 0.63 1450 46.62 42.29 2.19 0.60 1.81
K-14-0572 279.40 283.15 3.75 3.29 142 4.56 4.14 0.15 0.48 2.44
287.10 289.75 2.65 2.32 39 1.25 1.14 0.03 0.03 0.96
297.70 302.45 4.75 4.16 85 2.74 2.48 0.08 0.99 3.87
K-14-0573 262.55 271.85 9.30 8.46 599 19.25 17.47 1.16 0.75 2.49
including 263.30 264.55 1.25 1.14 1985 63.82 57.90 2.34 1.39 1.08
264.55 265.15 0.60 0.55 861 27.68 25.11 2.06 0.77 1.74
268.24 269.15 0.91 0.83 744 23.92 21.70 0.73 0.86 0.28
271.15 271.85 0.70 0.64 709 22.79 20.68 0.18 1.09 7.09
275.05 275.65 0.60 0.55 63 2.02 1.83 0.16 0.21 0.63
284.20 285.85 1.65 1.50 45 1.45 1.32 -0.01 0.06 0.18
288.50 288.90 0.40 0.36 853 27.42 24.88 0.12 9.00 4.59

Flame Lightning Zone (Geotech)

Hole From
(m)
To
(m)
Inter-
val
(m)
True
Width
(m)
Ag
(g/t)
Ag
(oz/
tonne)
Ag
(oz/ton)
Au
(g/t)
Pb
(%)
Zn
(%)
K-14-0511 24.80 26.00 1.20 0.47 30 0.96 0.87 -0.01 0.00 0.57
29.00 37.00 8.00 3.16 84 2.71 2.46 0.00 0.11 0.41
K-14-0516 38.53 61.31 22.78 10.66 250 8.05 7.30 0.43 0.80 8.41
including 39.99 41.23 1.24 0.58 1420 45.65 41.42 0.36 0.39 2.60

Flame Southwest Extension Zone

Hole From
(m)
To
(m)
Inter-
val
(m)
True
Width
(m)
Ag
(g/t)
Ag
(oz/
tonne)
Ag
(oz/ton)
Au
(g/t)
Pb
(%)
Zn
(%)
K-14-0525 186.25 188.00 1.75 1.47 438 14.07 12.77 0.16 5.61 7.39
including 186.25 186.50 0.25 0.21 726 23.34 21.18 0.53 0.85 3.22
186.50 187.06 0.56 0.47 986 31.70 28.76 0.19 17.05 20.50
191.00 194.35 3.35 2.81 340 10.94 9.92 1.39 0.81 1.69
197.48 199.46 1.98 1.66 101 3.25 2.95 0.29 0.05 0.07
213.52 214.10 0.58 0.49 109 3.50 3.18 0.82 0.06 0.06
K-14-0526 201.92 202.29 0.37 0.28 164 5.27 4.78 0.68 1.69 1.26
530.41 536.92 6.51 5.01 166 5.34 4.85 0.20 0.24 0.96
K-14-0527 183.58 185.10 1.52 0.99 100 3.22 2.92 0.22 0.18 0.37
189.85 190.12 0.27 0.18 100 3.22 2.92 0.24 0.39 5.37
194.15 194.47 0.32 0.21 72 2.30 2.09 -0.01 0.02 0.01
K-14-0528 230.52 230.93 0.41 0.27 194 6.24 5.66 0.48 0.28 11.40
234.40 239.40 5.00 3.30 843 27.09 24.58 0.38 0.93 1.64
including 235.80 236.30 0.50 0.33 1070 34.40 31.21 0.63 1.49 0.27
236.30 236.85 0.55 0.36 3040 97.74 88.67 1.17 3.32 3.46
236.85 237.40 0.55 0.36 2710 87.13 79.04 0.99 2.16 7.41
245.30 248.70 3.40 2.24 35 1.13 1.03 0.05 0.07 1.09
K-14-0530 248.21 253.05 4.84 3.05 510 16.39 14.87 0.15 0.84 2.60
including 248.21 248.40 0.19 0.12 2020 64.94 58.92 0.52 1.84 7.82
248.40 249.09 0.69 0.43 2390 76.84 69.71 0.64 3.65 11.30
260.12 260.48 0.36 0.23 498 16.01 14.53 0.36 0.70 5.75
274.40 275.33 0.93 0.59 135 4.34 3.94 0.02 0.91 1.25
280.62 281.10 0.48 0.30 2140 68.80 62.42 0.03 5.69 7.73
K-14-0532 526.47 527.25 0.78 0.58 31 0.99 0.90 0.06 0.11 0.19
538.41 540.90 2.49 1.87 112 3.61 3.27 0.15 0.13 1.28
K-14-0534 244.10 248.00 3.90 2.46 125 4.03 3.65 0.21 0.18 1.63
K-14-0536 274.77 279.30 4.53 2.67 121 3.88 3.52 0.10 0.98 1.68
285.68 286.50 0.82 0.48 76 2.45 2.23 0.02 0.20 0.89
K-14-0540 367.79 369.70 1.91 1.62 213 6.83 6.20 0.08 0.76 4.31
K-14-0543 352.04 355.52 3.48 3.20 181 5.81 5.28 0.35 0.15 3.02
including 354.40 354.67 0.27 0.25 737 23.70 21.50 0.09 0.08 8.57
K-14-0545 417.00 423.00 6.00 4.92 146 4.70 4.26 0.45 0.33 5.94
including 417.00 417.73 0.73 0.60 610 19.61 17.79 1.36 0.96 2.22
K-14-0546 470.53 476.55 6.02 5.06 92 2.95 2.68 0.09 0.15 1.85
K-14-0548 322.05 323.05 1.00 0.77 43 1.40 1.27 0.07 0.15 0.11
482.40 484.10 1.70 1.31 74 2.37 2.15 0.08 0.65 0.21
K-14-0549 661.21 663.00 1.79 1.09 53 1.70 1.54 0.02 0.05 0.09

Flame Northeast Exploration

Hole From
(m)
To
(m)
Inter-
val
(m)
True
Width
(m)
Ag
(g/t)
Ag
(oz/
tonne)
Ag
(oz/ton)
Au
(g/t)
Pb
(%)
Zn
(%)
K-14-0507 180.00 183.00 3.00 41 1.30 1.18 0.02 0.01 0.07
K-14-0509 117.40 118.00 0.60 92 2.96 2.69 0.38 0.07 14.85
302.00 302.70 0.70 70 2.24 2.03 6.16 0.08 0.16
324.00 324.50 0.50 36 1.15 1.04 0.76 0.05 17.90
K-14-0510 276.00 277.95 1.95 42 1.34 1.21 -0.01 0.00 0.01

Flame West

Hole From
(m)
To
(m)
Inter-
val
(m)
True
Width
(m)
Ag
(g/t)
Ag
(oz/
tonne)
Ag
(oz/ton)
Au
(g/t)
Pb
(%)
Zn
(%)
K-14-0513 40.57 42.00 1.43 46 1.48 1.35 0.04 0.32 0.68
K-14-0514 36.00 37.98 1.98 12 0.39 0.35 0.01 0.03 1.82
93.12 94.43 1.31 57 1.84 1.67 0.03 2.78 1.17
197.59 197.90 0.31 136 4.37 3.97 0.26 0.16 0.50
221.68 222.38 0.70 60 1.94 1.76 0.21 0.12 1.54
K-14-0515 184.70 186.00 1.30 661 21.24 19.27 0.22 10.12 0.20
including 184.70 185.10 0.40 1830 58.84 53.38 0.61 24.37 0.10
K-14-0517 178.00 179.00 1.00 131 4.21 3.82 0.02 0.01 0.05

Christal Corridor

Hole From
(m)
To
(m)
Inter-
val
(m)
True
Width
(m)
Ag
(g/t)
Ag
(oz/
tonne)
Ag
(oz/ton)
Au
(g/t)
Pb
(%)
Zn
(%)
K-14-0520 52.00 52.50 0.50 81 2.59 2.35 0.01 0.27 19.30

To view Figure 1, Figure 2 and Figure 3 accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/988287.pdf

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