Alexco Resource Corp.
TSX : AXR

Alexco Resource Corp.

November 02, 2006 13:25 ET

Alexco Announces Initial Keno Hill Drill Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 2, 2006) - Alexco Resource Corp. (TSX:AXR) ("Alexco or the Company") is pleased to announce initial assay results from its ongoing diamond drilling campaign at its Keno Hill Project in the Mayo Mining District, Yukon. To date over 9,200 metres of drilling has been completed in 33 holes, the majority targeted to validate or test extensions of known mineralization in the areas around seven past producing silver mines.

Highlights

- Partial drill results from the initial seven core holes in the area of the past producing Silver King mine at Keno Hill have returned some spectacular values. Highlights include:

- DDH K06-002 which cut four mineralized intervals including two bonanza intervals grading: 3.21 kg/tonne of silver (93.6 ounces per ton silver) and 1.65% lead over 1.0 metre from 166.8 to 167.8 metres, and 2.71 kg/tonne of silver (79.0 ounces per ton silver) over 1.0 metre from 299.0 to 300.0 metres;

- DDH K06-006 which cut one bonanza interval grading: 3.84 kg/tonne of silver (112.0 ounces per ton silver) over 1.4 metres from 248.4 to 249.8 metres;

- DDH K06-009 which cut two mineralized intervals including one bonanza interval over 1.04 metres grading: 2.47 kg/tonne of silver (72.0 ounces per ton silver) and 24.1 g/tonne of gold (0.70 ounces per ton gold) from 130.36 to 131.40 metres.

- Additional diamond drill holes at the former Husky, Husky Southwest, Lucky Queen, Shamrock, Ruby and the Bellekeno Mines have encountered mineralized intervals with significant amounts of galena, sphalerite, ruby silver and native silver in widths varying from 1.0 metre to as much as 10.0 metres. Assays are pending and will be reported when received and compiled.

- Based on the initial drill results from 2006, Alexco plans a major exploration and resource expansion effort with a minimum of 30,000 metres of diamond drilling anticipated in 2007.

2006 Drill Program

Drilling in 2006 has focused on gathering baseline information from areas around the former Silver King, Husky, Husky Southwest, Lucky Queen, Shamrock, Ruby and Bellekeno mines. These past producers mined a portion of the historic Keno Hill silver district extending over an eighteen kilometre long belt.

Assays from five of the seven initial drill holes completed in the area of the former Silver King mine have been received. Partial results have been received for the two remaining holes. The initial results are impressive with high-grade bonanza intervals encountered in three of the drill holes as well as long, lower grade intervals of intensely altered and stock-worked material. The holes at Silver King primarily targeted the down-dip and along-strike extension of historic mine workings. A summary of the results received to date is presented in Table 1.



Table 1: Initial Results from the Silver King Area - Keno Hill Property
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Ag Eq
Au Au Ag Ag (i)
From To Length g/ oz/ g/ oz/ Pb Zn oz/
Hole # metres metres metres tonne ton tonne ton % % ton
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K06-001 141.10 141.50 0.40 0.18 0.005 772.0 22.5 4.85 0.01 28.3
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K06-001 153.10 154.60 1.50 0.15 0.004 360.0 10.5 0.05 0.02 10.9
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K06-002 102.00 115.00 13.00 0.28 0.008 117.73 3.4 1.19 3.40 11.7
include
-ing 111.00 114.00 3.00 0.45 0.013 270.0 7.9 2.15 9.33 28.7
K06-002 166.80 167.80 1.00 0.99 0.029 3210.0 93.6 1.23 0.01 96.9
less less
than than
K06-002 299.00 300.00 1.00 0.01 0.001 2710.0 79.0 0.28 0.68 80.7
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K06-003 160.50 161.20 0.70 1.38 0.040 357.0 10.4 1.49 0.40 15.5
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K06-004 214.60 227.00 12.40 0.10 0.003 152.3 4.4 0.29 0.40 5.7
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include
-ing 216.10 218.36 2.26 0.31 0.009 721.0 21.0 1.29 2.02 26.9
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less
than
K06-004 274.00 275.10 1.10 0.63 0.018 973.0 28.4 0.01 0.03 29.7
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less less
than than
K06-004 333.50 334.50 1.00 5.03 0.147 15.40 0.4 0.01 0.01 10.1
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K06-006 244.70 262.70 18.00 0.43 0.013 306.0 8.9 0.12 0.05 10.0
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include
-ing 248.39 249.75 1.36 1.71 0.050 3840.0 112.0 0.16 0.03 115.5
--------------------------------------------------------------------------
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K06-007 188.28 189.68 1.40 0.16 0.005 502.6 14.7 3.63 0.38 19.8
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K06-009 130.36 134.50 4.14 6.30 0.184 769.0 22.4 0.35 0.10 35.1
include
-ing 130.36 131.40 1.04 24.10 0.703 2470.0 72.0 0.12 0.07 118.5
less
than
K06-009 161.50 164.00 2.50 0.16 0.005 1275.9 37.2 0.49 0.01 38.1
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(i) Silver (Ag) equivalent calculated based on US$525 Au, US$8.00 Ag,
US$0.45 Pb, and US$0.75 Zn; metallurgical recoveries not considered.


The initial results in the Silver King area suggest the possibility of bulk mineable widths in contrast to the more discrete lead-zinc-silver veins encountered in the Bellekeno area, located fifteen kilometres to the east. Preliminary results from Bellekeno drilling are expected shortly.

Exploration continues with two rigs currently drilling on the property. Total drilling now exceeds 9,200 metres with approximately 11,500 metres anticipated by the end of November 2006. Core logging is current and over 4,000 samples have been delivered to ALS Chemex labs in Vancouver. The program is managed by the NovaGold Resources Inc. (TSX:NG)(AMEX:NG) exploration team on behalf of Alexco.

Alexco anticipates three to four rigs drilling at Keno Hill for eight months in 2007, drilling a minimum of 30,000 metres within the district. Planning of the 2007 diamond drilling and geology work plan is currently ongoing and will be finalized upon completion of the 2006 exploration field program.

Note: 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 (5.37 million tons) 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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