Note : I learned of Alexco just this week – doing the research for my new book AMP Gold and Precious Metals Portfolio.
I have a good list of senior miners .If you have favorite juniors that may be unknown please email the names and a brief description – to email@example.com
AXR : TSX : C$4.29 | Speculative Buy , Target C$8.50
SPECULATIVE BUY recommendation on the shares of Alexco Resources with a target price of C$8.50
Alexco reported initial resource estimates for the Flame & Moth and Bermingham deposits.
The Flame & Moth deposit is host to a global resource of 1.1 million tonnes grading 405 g/t Ag, 0.35 g/t Au, and 7.53% combined Pb/Zn, containing 14.9 million ounces of silver.
Bermingham is host to 359,000 tonnes grading 435 g/t Ag and 3.8% combined Pb/Zn, containing 5.0 million ounces of silver.
The initial resource for Bermingham is lower than what was expected; however, we view the initial resource at Flame & Moth positively. The Flame & Moth deposit is particularly significant for the future development of the Keno Hill district as it hosts significantly wider zones of mineralization compared with the Bellekeno, Lucky Queen, Onek, and Bermingham deposits.
Its development is expected to allow for Alexco to significantly increase the throughput and production from the Keno Hill district over the next three years.
Value the Flame & Moth and Bermingham deposits based on an in situ valuation. After adjusting our model, our peak silver NAVPS (5%, US$35/oz
Ag) estimate has decreased to C$8.51, down from C$8.79. We value the shares of Alexco based on a 1.0x multiple to our peak silver price NAVPS
estimate (5%, US$35/oz Ag).