VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 03/05/12 — Alexco Resource Corp. (TSX: AXR) (NYSE Amex: AXU) today announces plans to increase exploration spending by 50% to $12 million in 2012. The Company will expand its efforts in both surface and underground exploration in the Keno Hill Silver District, Yukon, where its Bellekeno mine continues to ramp up silver production to an estimated 2.2 to 2.5 million ounces of silver in 2012.
Alexco conducted a highly successful exploration program in 2011. Especially notable were the new and expanded discoveries at the Flame & Moth and Bermingham properties, both of which were recently reported with additional positive drilling results. Alexco plans over 29,000 meters of drilling in the District during 2012, including approximately 4,500 meters of drilling underground at the Bellekeno mine, approximately 2,000 meters underground at the Lucky Queen project, and a minimum of 23,000 meters of surface exploration and definition drilling at various locations throughout the District.
From June 2006 through calendar 2011, Alexco has drilled 331 diamond drill holes totaling approximately 73,400 meters in the Keno Hill Silver District, as well as another 344 holes and 37,600 meters drilled from surface and underground specifically in the Bellekeno mine area. Alexco has also completed 34 reverse circulation drill holes totaling 1,150 meters in areas of deep alluvial cover and 283 sonic drill holes totaling approximately 910 meters in the area of the historical Elsa tailings. Over this period, the Company has additionally flown 2,016 line kilometers of airborne geophysics, and has compiled approximately 35,000 historical production and exploration documents into a 300 gigabyte digital database.
To date, only 18 of the approximately 35 known historical silver mines within Alexco-s Keno Hill Silver District land holdings have been drill tested. In addition, and apart from the historical silver mines, work on known gold occurrences at McQuesten and Keno Hill has generally been deferred in prior year programs, a situation which will change in 2012.
References
Pursuant to National Instrument 43-101 – Standards of Disclosure for Mineral Projects („NI 43-101“), supporting documents referenced for scientific and technical information disclosed in this news release are listed as follows:
Qualified Person
The disclosure in this news release of scientific and technical information regarding exploration projects on Alexco-s mineral properties has been reviewed and approved by Alan McOnie, FAusIMM, Vice President, Exploration for Alexco, a Qualified Person as defined by NI 43-101.
About Alexco
Alexco Resource Corp. owns and operates the Bellekeno silver mine, one of several mineral properties held by Alexco which encompass substantially all of the historical Keno Hill Silver District located in Canada-s Yukon Territory. Bellekeno, which commenced commercial production at the beginning of calendar year 2011, is Canada-s only operating primary silver mine. Alexco-s primary near-term exploration objective is to unlock value in the silver-rich Keno Hill District, and is focused on growth by advancing its promising District properties to development decisions. The Company-s goal is to produce 7 million to 10 million ounces of silver annually within the next decade. Employing a unique business model, Alexco also provides mine-related environmental services, remediation technologies and reclamation and mine closure services to both government and industry clients through the Alexco Environmental Group, its wholly-owned environmental services division.
Keno Hill Silver District History
Between 1921 and 1988, the Keno Hill Silver District was a world-class silver producer, with more than 217 million ounces of silver produced at average grades of 40.5 ounces per ton silver, 5.6% lead and 3.1% zinc (Yukon Government-s Minfile database). These historical production grades would rank Keno Hill in the top 3% by grade of today-s global silver producers.
Some statements („forward-looking 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 and reports, 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. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.
Contacts: Alexco Resource Corp. Clynton R. Nauman President and Chief Executive Officer (604) 633-4888
