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VANCOUVER,
BRITISH COLUMBIA--(Marketwire - March 8, 2010) - Alexco Resource Corp. (TSX:AXR)(NYSE
Amex:AXU) ("Alexco" or the "Company") is pleased to
announce that it has awarded the Mining Services Contract for
development and production mining of the Bellekeno silver-lead-zinc
deposit to the NNDDC/Procon Joint Venture, a joint venture between
Procon Mining and Tunnelling Ltd. and the Nacho Nyak Dun Development
Corp. The
Bellekeno Mine is located in the Keno Hill silver district of Canada's
Yukon Territory, within the traditional territory of the First Nation
of Na-Cho Nyak Dun.
The award of this major contract represents a significant step in the
Company's development of the Bellekeno Mine. Pre-production development
activity under the mining contract includes approximately 600 meters of
primary ramp development, which includes ore access, 32 meters of raise
development and 400 meters of rehabilitation in historical workings, as
well as installation of necessary electrical, ventilation and
compressed air services. This work will be completed over the course of
the next five months, in preparation for the commencement of ore
production in the third quarter of calendar 2010.
Some key points of the mining services contract include:
-- Provides for significant job opportunities and training for the First Nation of Na-Cho Nyak Dun -- Provides for Alexco purchase from the Joint Venture of some or all mining equipment in future -- Provides for opportunity payments to the Joint Venture based on meeting and exceeding specific cost, productivity, safety and environmental targets
Procon's
performance and safety record, history of successful First Nations
relationships and familiarity with the project from prior work in the
Keno Hill district were all significant factors in Alexco's selection
of the NNDDC/Procon Joint Venture for this Mining Services Contract.
"We are pleased to have awarded this major contract to a well
qualified Canadian-based mining contractor. Procon's operating
philosophy aligns well with Alexco's project vision, not only through
their professional approach to mining but through their commitment to
provide meaningful growth and development opportunities to the citizens
of the First Nation of Na-Cho Nyak Dun," said Clynt Nauman,
President and Chief Executive Officer of Alexco.
Update on Bellekeno Mine and Mill Construction
Construction at the Bellekeno Mine and Mill complex is proceeding on
schedule and within budget. Detailed engineering is progressing for the
project, mill building steel is erected, mine rehabilitation and
infrastructure development is ongoing as scheduled, and planning
continues for peak construction which is anticipated to occur over the
April through July timeframe. Due to unusually warm weather being
experienced this winter in the Yukon, construction of the mill building
is ahead of schedule. The targeted completion date for full mill
construction and commencement of production remains the third quarter
of calendar 2010. Alexco anticipates it will provide a complete update
on construction progress early in the second quarter of calendar 2010,
when detailed engineering is projected to be substantially completed
and procurement is expected to have reached the 75% milestone.
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 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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