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VANCOUVER, BRITISH COLUMBIA–(Marketwire – Dec. 8, 2011) – Alexco Resource Corp. (TSX:AXR)(NYSE Amex:AXU) today announces interim results from its 2011 drilling program at the Bermingham property, located adjacent to the historical Hector Calumet mine within the Keno Hill Silver District in Canada’s Yukon Territory. Previously-discovered zones of silver mineralization at Bermingham have been confirmed and expanded, with intercepts ranging up to 22.2 meters true width within a complex structural zone. Drill testing has spanned 350 meters along strike with the mineralized zone remaining open 300 meters down plunge, and high-grade intercepts of up to 346.8 ounces per ton (oz/T) silver over 0.12 meters have been recorded. The broad southwesterly-plunging silver and locally gold mineralized zone is focused within three closely-spaced subparallel vein systems. These are localized along a large northeasterly trending regional structural zone that links to the historic Hector Calumet mine, which produced 96 million ounces of silver over its operating life. To date, assay results have been received for 13 out of 26 holes drilled at Bermingham in 2011 and confirm the presence of significantly wide zones of lower grade silver mineralization as well as selective zones more typical of the high grade Keno Hill style mineralization seen elsewhere in the District. Following receipt of all remaining assays by early 2012, Alexco intends to calculate an initial resource estimate for this new Bermingham discovery.
Alexco President and CEO Clynt Nauman noted, “The thick and continuous nature of the Bermingham mineralization appears to be unique for the Keno Hill Silver District. While we may not yet fully understand the size and tenor of the Bermingham deposit, we certainly understand the positive implications of this important discovery, which will clearly require continuation of dedicated and focused drilling efforts in 2012.”
Bermingham Highlights
Using a combination of a 30 gram per tonne (g/t) silver cutoff for higher grade zones and a 10 g/t silver cutoff for broader mineralized zones, as separately noted within the assay tables, current results at Bermingham include the composite assay intervals shown below, restricted to include a maximum of two meters unmineralized internal dilution. All intervals are adjusted to reflect true thickness.
2011 Bermingham Geology Update and Results
The above results are from the 2011 diamond drilling program, which comprised 26 holes totaling 7,190 meters, to bring the total drilling completed in the Bermingham area by Alexco since 2009 to 10,758 meters in 37 holes. Assay results of 13 holes from the 2011 program have been received to date and are reported here, and are in addition to those previously reported (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”). The complete set of assays and results for 2011 Bermingham work will be reported once all outstanding assays are received in early 2012.
The Bermingham area lies at the junction of the historically mined Bermingham and Ruby vein systems located approximately 1.5 kilometers southwest of the historical Hector Calumet mine workings. The 2011 work was designed to establish continuity and extend mineralization in the Bermingham section and to investigate its relationship to the other mineralized vein systems.
The drilling has concentrated in the area under and immediately southwest of the historical Bermingham open pit mine, where the distribution of mineralization is complicated by the presence of several post-mineral faults including the Mastiff Fault that has an estimated oblique, right lateral normal displacement of 77 meters.
In addition to the Bermingham Vein, the newly discovered Aho and Bermingham Footwall vein systems have been integrated into an updated 3D geological model. These new systems tend to be broadly mineralized and in places form a combined width of up to 22.2 meters true width at 224 g/t (6.5 oz/T) silver where the veins merge and numerous smaller splays are developed in the controlling pre-mineral fault structures.
The drilling reported here has been completed over a 350 meter strike length to depths of 300 meters, with the mineralization remaining open at depth to the southwest. The geological continuity of the system to the northeast is not yet resolved.
The mineralization is characterized by the presence of quartz and siderite veins containing high silver grades due to the presence of silver sulphosalts and some native silver, with some gold (to 1.24 g/t over 2.47 meters intercept width in K-11-0364), but with generally low grades of associated base metals. Importantly, the Bermingham discovery is high within the Keno Hill stratigraphic sequence, so there remains significant depth potential in the underlying favourable Keno Hill Quartzite host rock.
Examination of the mineralized intervals clearly indicates that the scope for mineral resources may not necessarily be restricted to the narrower high silver grade style traditionally mined in the Keno Hill District. Table 2 shows mineralized intervals calculated using a 30 g/t silver cutoff grade (with allowance for up to two meters of unmineralized material in the interval). With the recognition of significantly wider intervals containing multiple subparallel veins and vein splays, Table 3 shows the same results calculated at the lower cutoff grade of 10 g/t silver (again with allowance for up to two meters of unmineralized material in the interval). On receipt of all assay results, it is anticipated sufficient information will be available to enable an initial estimate of mineral resources for the Bermingham property using various mining parameters that will provide guidance for further exploration and development options.
Updated composite assay tables, along with a drill hole location map and a long section plot, for the 13 reported drill holes from the Bermingham property are appended to this release, and are available for review on the Company’s website at www.alexcoresource.com.
Notes
The 2011 exploration drill program and sampling protocol has been reviewed, verified and compiled by Alexco’s geologic staff under the supervision of Alan McOnie, Vice President, Exploration for Alexco and a Qualified Person as defined by National Instrument 43-101 (NI 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 delivered to the assay lab. Drill core samples were shipped to ALS Minerals Labs at Whitehorse, Yukon for preparation, with fire assay and multi-element ICP analyses completed at the ALS Minerals facility in North Vancouver, British Columbia. The disclosure of scientific and technical information about Alexco’s mineral projects contained in this news release has also been reviewed and approved by Mr. McOnie.
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.
Please visit the Alexco website at www.alexcoresource.com.
