Alexco Resource Corp.
TSX : AXR

Alexco Resource Corp.

November 16, 2006 10:11 ET

Alexco Announces Additional Keno Hill Drill Results: Bellekeno Mine Area

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 16, 2006) - Alexco Resource Corp. (TSX:AXR) ("Alexco or the Company") is pleased to announce additional encouraging assay results from its Keno Hill Project, Yukon, where its exploration program is managed by NovaGold Resources Inc. (TSX:NG)(AMEX:NG). To date over 10,500 metres of diamond drilling has been completed in 40 holes in the Keno Hill silver district, the majority targeted to confirm or test extensions of known mineralization in areas around seven of the thirty five past producing silver mines in the district.

Highlights

- Partial drill results from the initial three of nine holes in the area of the past producing Bellekeno mine at Keno Hill have returned bonanza silver grades. Highlights include:

- DDH K06-011 which cut an interval grading: 4.6 kg/tonne of silver (135.0 ounces per ton silver), 63.4% lead and 7.5% zinc or 220.5 opt silver equivalent over 2.0 metres from 399.3 to 401.3 metres;

- DDH K06-016 which cut an interval grading: 2.5 kg/tonne of silver (74.2 ounces per ton silver), 0.97 g/tonne gold, 10.0% lead and 24.0% zinc or 132.4 opt silver equivalent over 1.6 metres from 364.45 to 366.05 metres; and

- DDH K06-020 which cut an interval grading: 1.4 kg/tonne of silver (56.3 ounces per ton silver), 1.28 g/tonne of gold and 30.8% zinc or 101.4 opt silver equivalent over 2.2 metres from 409.6 to 411.8 metres.

- SRK Consulting has been retained to undertake a NI 43-101 compliant resource estimate for the Bellekeno deposit where United Keno Hill Mines Limited ("UKHM") reported significant historical resources. Completion of the study is scheduled for the First Quarter 2007 and will form the basis for a resource definition drilling campaign in 2007.

- Based on the initial drill results from the Silver King, Bellekeno and other areas in 2006, Alexco plans a major exploration and resource expansion effort at Keno Hill district with a minimum of 30,000 metres of diamond drilling anticipated in 2007. At Bellekeno, an initial 20+ million oz silver equivalent inferred resource is targeted for 2007 based on an estimated minimum 12,000 metres of surface drilling.

2006 Work Program

Drilling in 2006 has focused on gathering baseline information from areas around the former Silver King, Bellekeno, Husky, Husky Southwest, Lucky Queen, Shamrock and Ruby mines. These past producers mined a portion of the historic Keno Hill silver district extending over an eighteen kilometre long belt. A property target location map along with drill hole plan maps for the Bellekeno and Silver King areas are posted on the Company's website at www.alexcoresource.com.

Assays from three of the nine initial drill holes completed in the area of the former Bellekeno mine have been received. The initial results are impressive with high-grade silver and base metal intervals encountered in all three of the drill holes. The holes at Bellekeno primarily targeted the down-dip and along-strike southwestern extension of the bonanza lead-zinc-silver veins developed by UKHM and served to verify the continuation of historically reported mineralization. Two of the holes reported here (K06-011 and K06-016) were lost in the mineralized zone due to technical drilling issues. A summary of the results received to date is presented in Table 1.



Table 1: Initial Results from the BELLEKENO Mine - Keno Hill Property

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Ag Eq
Ag Ag Au (i)
From To Length g/ oz/ g/ Au Pb Zn oz/
Hole # metres metres metres tonne ton tonne oz/ton % % ton
--------------------------------------------------------------------------

--------------------------------------------------------------------------
K06-011 399.30 402.00 2.70 3449.2 100.6 0.30 0.009 47.11 8.65 170.4
--------------------------------------------------------------------------
includ-
ing 399.30 401.30 2.00 4628.5 135.0 less less 63.39 7.54 220.5
than than
0.01 0.001
--------------------------------------------------------------------------

--------------------------------------------------------------------------
K06-016 363.95 367.50 3.55 1239.3 36.1 0.75 0.022 5.46 13.44 68.9
--------------------------------------------------------------------------
includ-
ing 364.45 366.05 1.60 2543.1 74.2 0.97 0.028 10.04 24.04 132.4
--------------------------------------------------------------------------

--------------------------------------------------------------------------
K06-020 407.80 411.80 4.00 859.1 25.1 0.99 0.029 0.32 19.14 63.2
--------------------------------------------------------------------------
Includ-
ing 409.60 411.80 2.20 1409.1 56.3 1.28 0.037 0.06 30.82 101.4
--------------------------------------------------------------------------
(i) Silver (Ag) equivalent calculated based on metal prices of
US$525/oz Au, US$8.00/oz Ag, US$0.45/lb Pb, and US$0.75/lb Zn;
metallurgical recoveries not considered.


Exploration continues at Keno Hill with two core rigs currently drilling on the property. Total drilling exceeds 10,500 metres with approximately 11,500 metres anticipated by the end of November 2006. Core logging is current and over 4,700 core samples have been delivered to ALS Chemex labs in North Vancouver, BC. Results from the historic Silver King mine area were released on November 2nd and can be viewed on the Company's website. The exploration program is managed by the NovaGold Resources Inc. exploration team on behalf of Alexco.

Bellekeno Resource Update

SRK Consulting has been retained to undertake a NI 43-101 compliant resource estimate for the past producing Bellekeno mine where United Keno Hill Mines Limited reported significant historical resources. Records indicate the Bellekeno mine produced 42,000 tons (38,102 tonnes) of ore averaging 42.6 ounces per ton of silver (1,461 g/t silver) with approximately 11% lead and 7% zinc. Completion of the resource estimate is scheduled for the First Quarter 2007 and will be the basis for resource definition drilling in 2007.

In March 1997, estimated remaining resources at Bellekeno were published by Keno Hill mine staff (Table 2). Samples were collected by underground percussion drilling and surface core drilling, and silver assays were capped at 100 ounces of silver per ton (3,429 g/t silver). Manual polygonal estimation methods were used and, if necessary, the veins were diluted to a minimum mining width of 5 feet (1.52 metres). These historical resources used the revised February 1996 CIM Mineral Resource/Reserve Classification reporting guidelines. Although believed to be relevant by Alexco management, these historical resources are not NI 43-101 compliant, should not be relied upon, and will be updated and verified by an independent qualified person in the upcoming SRK resource estimate.



Table 2: Estimated Remaining Historical Resources from the BELLEKENO Mine-
Keno Hill Property
--------------------------------------------------------------------------
Ag
Eq Ag
Resou- Resou- (i) Eq
rce rce Ag Ag Au Au Pb Zn oz/ (i)
Hole # Tons Tonnes g/tonne oz/ton g/tonne oz/ton % % ton Moz
--------------------------------------------------------------------------

--------------------------------------------------------------------------
M & I 253,327 229,813 1,251 36.5 0.34 0.010 12.40 7.10 64.4 9.7
--------------------------------------------------------------------------
Inferred 37,950 34,427 789 23.0 0.34 0.010 6.00 4.00 37.9 4.3
--------------------------------------------------------------------------
(i) Silver (Ag) equivalent calculated based on metal prices of US$525/oz
Au, US$8.00/oz Ag, US$0.45/lb Pb, and US$0.75/lb Zn; metallurgical
recoveries not considered.


2007 Program Planning

Alexco's plan in 2007 is to initially capitalize on this historic resource at the Bellekeno deposit with further definition and expansion drilling to develop Inferred category resources from the surface. This will be followed by underground conversion of Inferred resources to Measured and Indicated resources as soon as the final regulatory authorizations related to environmental care and maintenance of the Keno Hill district are received, likely in late 2007 or early 2008.

Alexco anticipates four rigs drilling at the Keno Hill Project for six months in 2007, drilling a minimum of 30,000 meters within the district. At Bellekeno, a 20+ million oz silver equivalent inferred resource is initially targeted based on an estimated 12,000 metres of surface drilling including significant drilling up and down plunge of existing mineralized shoots where early indications from 2006 indicate continued mineralization.

Notes

True widths have not been determined for all the above reported drill intercepts but are believed to be representative of actual drill thicknesses.

A rigorous quality control and quality assurance protocol under the supervision of Qualified Person, Mike Stammers, P. Geo., a qualified person as defined by NI 43-101, was utilized on the project including blank, duplicate and standard reference samples in each batch of 20 samples that were delivered to the lab. All drill core samples were shipped to ALS Chemex Labs of North Vancouver, BC for preparation and analysis by fire assay and multi-element ICP.

Keno Hill Silver District History

Between 1921 and 1988, the Keno Hill 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.

About Alexco

Alexco's business is to unlock value and manage risk at mature, closed or abandoned mine sites through integration and implementation of the Company's core competencies which include management of environmental services, execution of mine reclamation and closure operations and if appropriate, rejuvenation of exploration and development activity.

Some statements in this press release contain forward-looking information. These statements include, but are not limited to, statements with respect to the entering into of agreements, the closing of transactions and the expenditure of funds. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing of transactions, the ability to fulfill certain conditions, the ability to raise funds and the timing and amount of expenditures.

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