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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 6, 2011) - Alexco
Resource Corp. (TSX:AXR)(NYSE Amex:AXU)
("Alexco" or the
"Company") is pleased to announce that it has declared
commercial production to have been achieved as of January 1, 2011 at
its 100% owned Bellekeno silver-lead-zinc
mine and mill complex in the Keno Hill Silver District, Yukon
Territory. Commissioning of the Bellekeno
conventional flotation plant and underground mine, initiated in late
September 2010, was completed at the end of December with both the mine
and mill operating at initial design throughput of 250 tonnes per day of ore for 30 days. This activity
has also satisfied the Initial Completion test under the Company's
silver purchase agreement with Silver Wheaton Corp. (NYSE:SLW)(TSX:SLW). For financial reporting purposes, this
declaration of commercial production establishes January 2011 as the
first full month of commercial production.
Commissioning activity at the Bellekeno
complex began in late September 2010 with confirmation of electrical
and mechanical integrity of all plant equipment, and proceeded through
scheduled processing of low grade material at low throughput rates in
late October, and finally scale-up to initial
design capacity and processing of ore by mid November. During the
commissioning and ramp-up period of October through December, the mine
produced approximately 15,700 tonnes of ore
and the mill processed over 9,000 tonnes of
ore and started shipping commercial specification concentrate for
smelting and refining in early December. Average production grade of
ore extracted during this October through December period, including
low grade material specifically mined for plant commissioning purposes,
was 1,068 grams per tonne silver, 12.6% lead
and 6.6% zinc.
Optimization and debottlenecking activities continue at Bellekeno, as the mine and mill ramp up to
fully-optimized levels of production. Primary focus areas of these
activities include further optimization of pumping and piping
efficiency between the flotation circuit and the dewatering
(filtration) circuit, and continued improvement of operating
efficiencies in the dewatering circuit.
"Reaching commercial production at Bellekeno
is the final milestone in Alexco's transition
to a fully accredited Canadian mining company, and a critical
achievement in the growth and evolution of our business", said Clynton Nauman, Alexco's President & CEO. "We are looking
forward to further success and growth of our Keno Hill operations in
2011, and especially working with our stakeholders to re-establish Keno
Hill as one of the preeminent silver producing districts in the
world."
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.
The scientific and technical information about the Bellekeno
project on which this news release has been based was prepared by Mr.
Thomas Fudge Jr., P.E., Vice President Development and Engineering for Alexco and a Qualified Person as defined by
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects.
For more information visit the Company's website at www.alexcoresource.com.
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 press 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, the timing of activities and
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 remediation and reclamation activities;
actual results of exploration activities; conclusions of economic
evaluations; changes in project parameters as plans continue to be
refined; future prices of gold, silver and other commodities; possible
variations in ore bodies, grade or recovery rates; failure of plant,
equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining
industry; and delays in obtaining governmental approvals or financing
or in the completion of development activities.
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