Alexco Resource Corp.
TSX : AXR
NYSE Amex : AXU

Alexco Resource Corp.

February 16, 2011 04:01 ET

Alexco Resource Corp.: New Keno Hill Silver Discovery-4.26 Meters of 49.9 Oz Per Ton Silver Intersected at Flame & Moth

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2011) - Alexco Resource Corp. (TSX:AXR)(NYSE Amex:AXU) ("Alexco" or the "Company") is pleased to announce results from 2010 core drilling at its Flame & Moth property, within the Keno Hill Silver District in Canada's Yukon Territory. This new discovery is a "blind" discovery, the result of a district-wide structural geology study, and is located at depth adjacent to the recently constructed Keno District mill. To date, 13 holes have intersected the northeast-trending Flame & Moth structure over a strike length of approximately 400 meters centered on the current mill site and down dip 300 meters below surface.

Highlights

Complete assay results have been received for all 13 holes drilled that reached target depth near the Flame & Moth prospect, located in the central part of the Keno Hill district. Results include the following:

  • DDH K10-320 cut an interval grading: 1,712 grams per tonne silver (49.9 ounces per ton), 1.500 grams per tonne gold, 8.0% lead, 9.8% zinc over 4.26 meters from 219.76 to 224.02 meters.
  • DDH K10-285 cut an interval grading: 1,336 grams per tonne silver (39.0 ounces per ton), 0.141 grams per tonne gold, 15.7% lead, 1.7% zinc over 1.13 meters from 199.47 to 200.60 meters.
  • DDH K10-264 cut an interval grading: 693 grams per tonne silver (20.2 ounces per ton), 0.390 grams per tonne gold, 2.2% lead, 3.8% zinc over 4.64 meters from 250.35 to 254.99 meters.
  • DDH K10-299 cut an interval grading: 542 grams per tonne silver (15.8 ounces per ton), 0.201 grams per tonne gold, 2.4% lead, 6.1% zinc over 2.47 meters from 237.66 to 240.13 meters.
  • DDH K10-305 cut an interval grading: 523 grams per tonne silver (15.2 ounces per ton), 0.193 grams per tonne gold, 0.2% lead, 0.7% zinc over 1.94 meters from 326.21 to 328.15 meters.
  • DDH K10-271 cut an interval grading: 722 grams per tonne silver (21.1 ounces per ton), 0.130 grams per tonne gold, 0.8% lead, 2.0% zinc over 0.72 meters from 323.60 to 324.32 meters.

Based on these encouraging results, the Flame & Moth area, along with the Bermingham area on Galena Hill (see news release dated January 24, 2011 entitled "Alexco Identifies New 6.4 to 8.9 Meter Wide Silver Mineralized Zone at Bermingham, Keno Hill, Yukon"), is considered a primary exploration target for Alexco at Keno Hill in 2011.

2010 Flame & Moth Geology and Results

The Flame & Moth structural zone was recognized as a potentially significant feature in late 2009 as part of Alexco's ongoing, district-wide structural geology study, when regional mapping defined it as a major through-going fault zone displaying significant lithologic offset. Even though the Flame & Moth area has seen minimal historical silver production (1,590 tons grading 18.3 ounces per ton silver, 1.1% lead and 0.9% zinc) and limited exploration, this category of mineral-bearing structure is considered the most favorable for hosting significant resources, similar to the Hector Calumet structural zone located on Galena Hill. As a result, the area was selected for drilling in 2010. As indicated by the Alexco drilling, the Flame & Moth structural zone typically exceeds 10 meters in width and locally contains significant sulfide mineralization including galena, sphalerite, arsenopyrite and massive pyrite. High-grade silver values occur either associated with galena, similar to other occurrences and mines in the district, or across entire structural widths regardless of sulfide mineralogy, as observed in drill hole K10-0320. Drilling occurred over a 400 meter strike length along the Flame & Moth structure to depths up to 300 meters below surface. Mineralization remains open in both directions along strike and down dip as well as up dip to the southwest. This newly discovered, largely unexplored area is considered a priority target for Alexco in 2011.

Notes

True widths have not yet been determined for the above reported drill intercepts.

The 2010 exploration drill program and sampling protocol has been reviewed, verified and compiled by Alexco's geologic staff under the oversight of Stan Dodd, Senior Geologist with Alexco and a Qualified Person as defined by National Instrument 43-101. A rigorous quality control and quality assurance protocol is used on the project, including blank, duplicate and standard reference samples in each batch of 20 samples that were delivered to the lab. Drill core samples were shipped to either Agat Labs or ALS Minerals Labs at Whitehorse, Yukon Territory for preparation, with fire assay and multi-element ICP analyses done at either Agat Labs facility at Mississauga, Ontario or ALS Minerals facility in North Vancouver, British Columbia. The scientific and technical information about Alexco's mineral projects contained in this news release has also been reviewed and verified by Mr. Dodd.

Composite tables and drill hole location maps for the 2010 Keno Hill core drilling programs, including Flame & Moth, are available for review on the Company website at www.alexcoresource.com.

Keno Hill Silver District History

Between 1921 and 1988, the Keno Hill Silver 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 of new mining opportunities.

Some statements in this news release contain forward-looking information concerning the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future, made as of the date of this news release. Forward-looking statements may include, but are not limited to, statements with respect to future remediation and reclamation activities, future mineral exploration, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and mineral resource estimates, future mine construction and development activities, future mine operation and production, the timing of activities, the amount of estimated revenues and expenses, the success of exploration activities, permitting time lines, requirements for additional capital and sources and uses of funds. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of exploration and development activities; actual results of mining activities; actual results of consulting activities; actual results of remediation and reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of silver, gold, lead, zinc and other commodities; possible variations in mineable resources, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; First Nation rights and title; continued capitalization and commercial viability; global economic conditions; competition; and delays in obtaining governmental approvals or financing or in the completion of development activities. Forward-looking statements are based on certain assumptions that management believes are reasonable at the time they are made. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to, the assumption that market fundamentals will result in sustained silver, gold, lead and zinc demand and prices.

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