Clynton Nauman, President and CEO of Alexco, commented: “The change of SPA is an exceptional result for Alexco. Most importantly, it clearly puts the Keno Hill Silver District on the road to rehabilitation and, ultimately, a production decision. In addition, we appreciate Silver Wheaton`s support through its strategic involvement in Alexco, which we believe reflects confidence in the future of sustainable silver production on Keno Hill, and recognition of the District`s proven and highly forward-looking exploration. “San Dimas has been in service for more than 130 years and the Wheaton mine was founded in 2004. Given that the new streaming agreement is linked to a combination of gold and silver production, we believe San Dimas Wheaton will continue to bring significant added value in the years to come, while providing economic and social opportunities to the Tayoltita community,” said Randy Smallwood, President and CEO of Wheaton. “First Majestic has a long history of operation in Mexico and expertise in extracting narrow underground venous deposits similar to Wie san Dimas. Due to their experience and their refocus on the exploitation of the entire deposit, including the silver-rich areas, we are pleased to welcome First Majestic as a partner. 4 Gold production is based on a silver-gold ratio of 70:1. The deadline for ratification of the agreement is April 1, 1934. However, unanimous ratification is not necessary; Indeed, the agreement provides that if one of the silver-producing countries retains its agreement, it will continue to take effect if those who ratify it take steps to buy or withdraw from the market the entire allocation of 35,000,000 ounces. For money producers, this regime would be just as satisfactory as unanimous ratification. If the United States were the only producing country it ratifies, as well as the money holding countries, the plan would come into effect if the United States agreed to purchase the total amount. The current strength of the money block in Congress brings such regulation in the area of possibility. Before resuming operation of the installation, an additional 1.8m x 3m, 130 kW ball mill (purchased, on site) is installed to provide extended sanding capacity before the flotation circuit.
Blocked and open cycle flotation tests on all deposits and previous operating results indicate that the average grades of lead concentrate during commercial production will be in the range of 65% Pb and 17,000 g/t Ag.