Alexco Resource Corp.
TSX : AXR

Alexco Resource Corp.

November 20, 2006 12:23 ET

Alexco Announces New High Grade Discovery at Keno Hill: Silver King East

Conference Call Scheduled on Tuesday November 21, 2006 9:00 am PST

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 20, 2006) - Alexco Resource Corp. (TSX:AXR) ("Alexco") is pleased to announce the discovery of a new zone of bonanza grade silver mineralization at its Keno Hill Project, Yukon. The exploration program is managed by NovaGold Resources Inc. (TSX:NG)(AMEX:NG). The Silver King East discovery is located approximately 600 metres northeast of the historic Silver King mine (see press release November 2, 2006) and represents a significant new development in the understanding and potential of the western extent of the Keno Hill silver district. "These are very exciting results with both bonanza silver grades with significant gold, and broader zones of well mineralized disseminated mineralization. The scale of the alternation system is impressive and suggests that large, bulk mineable targets may exist in the district. The discovery of a new target type has important implications for the potential of the district," stated Rick Van Nieuwenhuyse, NovaGold's President and CEO. "We look forward to expanding on the results with the 2007 exploration program."

Highlights

- Partial drill results from three holes in the Silver King East area in the western part of the historic Keno Hill district have returned bonanza silver grades and robust gold values. Highlights include:

- DDH K06-013 which cut an interval grading: 2.3 kg/tonne of silver (68.4 ounces per ton silver), 2.31 g/tonne gold, 0.7% lead and 1.0% zinc or 75.4 opt silver equivalent over 6.1 metres from 65.5 to 71.6 metres;

- The above interval in DDH K06-013 included a core intercept grading: 4.5 kg/tonne of silver (130.6 ounces per ton silver), 3.47 g/tonne gold, 1.1% lead and 1.8% zinc or 142.0 opt silver equivalent over 3.1 metres from 65.5 to 68.6 metres; and

- DDH K06-015 which cut one interval grading: 5.8 kg/tonne of silver (169.4 ounces per ton silver), 2.07 g/tonne gold, 14.7% lead and 1.1% zinc or 192.1 opt silver equivalent over 1.53 metres from 56.09 to 57.62 metres.

- The discovery at Silver King East suggests the presence of a much larger silver dominated and gold bearing disseminated and vein related mineralized system. It is considered significant that the precious metal rich, base metal depleted nature of mineralization at Silver King East is similar to mineralization at the historic Silver King and Husky Southwest mines to the southwest and northeast of Silver King East respectively.

- Based on initial results from the Silver King, Silver King East, Bellekeno and other areas, Alexco is preparing for a major exploration and resource development effort at Keno Hill with a minimum of 30,000 metres of drilling planned in 2007.

2006 Keno Hill 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 locations for the Silver King East, Bellekeno and Silver King areas are posted on the Company's website at www.alexcoresource.com.

Partial assays from the three holes drilled at the Silver King East prospect have been received. Core holes K06-013 (-59 degrees), K06-014 (-70 degrees) and K06-015 (-50 degrees) were drilled from the same setup and on the same azimuth. The holes were sited to follow up anomalous overburden drilling results reported by United Keno Hill Mines Limited in 1980; in particular hole A9829 which encountered historically reported values of 570.7 g/tonne silver (16.6 oz/ton Ag), 0.36% lead and 0.22% zinc over an apparent 18.3 metre interval. The discovery and follow-up of the Silver King East mineralization is due in large part to the significant historic data compilation program that Alexco has been carrying out over the past 12 months.

The newly discovered mineralization is present within a broad zone of argillized greenstone containing scattered bands of sulphide, primarily pyrite and lesser sphalerite with local galena. The initial results are impressive with both high grade bonanza silver intervals and longer lower grade intervals of stockwork mineralized material encountered in two of the three drill holes reported, Hole K06-014 encountered weaker silver-gold mineralization. A summary of results received to date is presented in Table 1



Table 1: Initial Results from the SILVER KING EAST Prospect - Keno Hill
Property
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Ag
Hole From To Length Ag Ag Au Au Pb Zn Eq(1)
# metres metres metres g/tonne oz/ton g/tonne oz/ton % % oz/ton
--------------------------------------------------------------------------
--------------------------------------------------------------------------
K06-
013 56.40 71.60 15.20 978.6 28.5 1.37 0.040 0.31 0.66 32.8
--------------------------------------------------------------------------
inclu-
ding 65.50 71.60 6.10 2345.1 68.4 2.31 0.067 0.74 0.95 75.4
--------------------------------------------------------------------------
inclu-
ding 65.50 68.60 3.10 4478.1 130.6 3.47 0.101 1.12 1.83 142.0
--------------------------------------------------------------------------
--------------------------------------------------------------------------
K06-014 No significant mineralization
--------------------------------------------------------------------------
--------------------------------------------------------------------------
K06-
015 54.20 60.00 5.80 1809.1 52.8 0.76 0.022 4.47 0.57 60.3
inclu-
ding 56.09 57.62 1.53 5806.8 169.4 2.07 0.077 14.74 1.14 192.1
--------------------------------------------------------------------------
(1) 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.


Diamond drilling at Keno Hill will wrap up in the Husky Southwest area later this week with two core rigs drilling the final holes on the property for 2006. Total drilling for 2006 will exceed 11,000 metres in 42 holes. Core logging is current and over 5,000 core samples have been delivered to ALS Chemex labs in North Vancouver, BC. Results from the historic Silver King and Bellekeno mine areas were released on November 2nd and 16th 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.

Implications of Silver King East Discovery

The recognition of broad zones of locally brecciated argillic and silica altered rock with disseminated and bonanza grade silver and associated gold mineralization in the area of the historic Silver King mine, 600 metres along strike at Silver King East and a further 1400 metres along strike at the former Husky SW mine may indicate the presence of a very large, high level silver dominated, relatively base metal depleted epithermal system. At both Silver King and Silver King East, narrower zones (1.0 to 1.4 metres in the Silver King area and 3.0 to 6.1 metres in the Silver King East area) of bonanza grade silver mineralization are observed in association with broader intervals (12 to 18 metres at Silver King and up to 15 metres at Silver King East) of lower grade but significant silver mineralization. Importantly, at both Silver King and Silver King East gold is associated with the silver mineralization. Initial results from the Silver King and Silver King East areas suggest the possibility of bulk mineable widths of silver and gold mineralization. The possibility of bulk mineable targets opens up the area to a whole new deposit type.

2007 Program Planning

Alexco's plan in 2007 anticipates four rigs drilling at the Keno Hill Project for at least eight months and a minimum of 30,000 metres within the district. The drill program will be designed to significantly expand and accelerate drilling in the Silver King - Husky Southwest corridor including the new discovery at Silver King East, while also capitalizing on the historic resource at the Bellekeno deposit where the objective will be to define a minimum of 20 million ounces of Inferred category silver resources.

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 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.

Conference Call

Alexco will host a conference call Tuesday, November 21st at 9:00 am PST (noon EST) to review the results of the 2006 Keno Hill drill program. There will also be an opportunity for Clynt Nauman and Rick Van Nieuwenhuyse to answer your questions about Keno Hill.

Dial in at 1-877-888-7019 or 416-695-9745 or view webcast at www.alexcoresource.com.

The call will also be archived on Alexco's website and available for replay until December 5, 2006 by calling 1-888-509-0081 or 416-695-5275, using passcode 859147.

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. NovaGold Resources Inc. with a 19% equity interest is Alexco's largest shareholder.

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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