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Alexco Intersects 1,483 Grams Per Tonne Silver (47.7 Ounces Per Tonne) Over 6.2 Meters True Width at Flame & Moth Deposit in the Keno Hill Silver District

Press Releases

January 20, 2015 Alexco Resource Corp. (NYSE-MKT:AXU, TSX:AXR) today announced final results from the 2014 surface drilling program in the vicinity of the Flame & Moth deposit which is centrally located within the Keno Hill Silver District in Canada’s Yukon Territory. The infill, definition and extension drilling totaled 15,133 meters in 59 holes focused on the northern and down-plunge areas of the northern Christal Zone, and on southern extensions of the southerly Lightning Zone.

Infill and extension drilling in 22 holes totaling 5,523 meters in and around the northerly Christal Zone returned results of a maximum true width of 13.3 meters (average of 6.5 meters) of mineralization, with a best composite silver assay of 1,483 grams per tonne silver (g/t) (47.7 ounces per tonne (opt)) over 6.2 meters true width. Drilling was completed to 20 – 30 meter centers to confirm mineralization continuity and grade, and is expected to positively affect the overall resource model for the Christal Zone area.

To the southwest of the southerly Lightning zone, down-plunge extension drilling in 14 holes (6,154 meters) included a best result of 843 g/t (27.1 opt) silver over 3.3 meters true width proximal to the existing resource. Drilling also extended the overall strike length of the mineralized zone an additional 150 meters to the southwest but at lower grade. The total drilled strike length of the Flame & Moth vein system in the area about the existing resource now measures approximately 1,150 meters.

Alexco President and Chief Executive Officer Clynt Nauman said, “The high-grade results from the 2014 Flame area drilling program provide further confidence in the grade and geometry upside of the silver resource, especially as it may relate to optimization of initial development and mining activity in the Flame & Moth area. We’ve also now confirmed a strongly developed southwestern down-plunge extension of the deposit, which can be further explored from underground at some point in the future. Meantime, Flame & Moth remains one of the best discoveries in the Keno Hill Silver District in the last 50 years and furthermore, there is significant exploration upside in the highly mineralized corridor within which the Flame & Moth deposit is centrally located.”

Drill Hole Highlights

Final 2014 exploration drill results include the following significant composite or individual assay intervals (above 30 g/t silver) as shown in Table 2:

Flame Christal Zone Resource Infill

  • K-14-0553 intersected mineralized vein material over 6.18 meters true width from 209.70 meters with a composite assay of 1,483 g/t (47.7 opt) silver, 0.45 g/t gold; including 0.47 meters true width from 211.32 meters with an assay of 4,390 g/t (141.1 opt) silver, 0.79 g/t gold, and 0.68 meters true width from 214.35 meters with an assay of 3,720 g/t (119.6 opt) silver, 0.66 g/t gold.
  • K-14-0554 intersected mineralized vein material over 5.19 meters true width from 201.5 meters with a composite assay of 1,111 g/t (35.7 opt) silver, 0.63 g/t gold; including 0.73 meters true width from 203.0 meters with an assay of 2,650 g/t (85.2 opt) silver, 0.43 g/t gold.
  • K-14-0557 intersected mineralized vein material over 5.27 meters true width from 220.4 meters with a composite assay of 1,018 g/t (32.7 opt) silver, 0.32 g/t gold; including 0.84 meters true width from 221.10 meters with an assay of 1,760 g/t (56.6 opt) silver, 0.45 g/t gold.
  • K-14-0558 intersected mineralized vein material over 6.06 meters true width from 209.00 meters with a composite assay of 963 g/t (31.0 opt) silver, 0.71 g/t gold; including 0.47 meters true width from 212.14 meters with an assay of 3,040 g/t (97.7 opt) silver, 2.58 g/t gold.
  • K-14-0566 intersected mineralized vein material over 5.26 meters true width from 187.15 meters with a composite assay of 1,356 g/t (43.6 opt) silver, 0.52 g/t gold; including 0.65 meters true width from 189.65 meters with an assay of 6,270 g/t (201.6 opt) silver, 1.10 g/t gold, and 0.34 meters true width from 192.62 meters with an assay of 4,600 g/t (147.9 opt) silver, 1.00 g/t gold.

Flame Southwest Lightning Zone

  • K-14-0528 intersected mineralized vein material over 3.30 meters true width from 234.40 meters with a composite assay of 843 g/t (27.1 opt) silver, 0.38 g/t gold; including 0.36 meters true width from 236.30 meters with an assay of 3,040 g/t (97.7 opt) silver, 1.17 g/t gold, and 0.36 meters true width from 236.85 meters with an assay of 2,710 g/t (87.1 opt) silver, 0.99 g/t gold.
  • K-14-0530 intersected mineralized vein material over 3.05 meters true width from 248.21 meters with a composite assay of 510 g/t (16.4 opt) silver, 0.15 g/t gold; including 0.43 meters true width from 248.40 meters with an assay of 2,390 g/t (76.8 opt) silver, 0.64 g/t gold; and also 0.30 meters true width from 280.62 meters with an assay of 2,140 g/t (68.8 opt) silver, 0.03 g/t gold.

Flame West Vein

  • K-14-0515 intersected mineralized vein material over 1.30 meters interval from 184.70 meters with a composite assay of 661 g/t (21.2 opt) silver, 0.22 g/t gold; including 0.40 meters interval from 184.70 meters with an assay of 1,830 g/t (58.8 opt) silver 0.61 g/t gold.

The Flame & Moth deposit has been previously identified to comprise 1,378,000 tonnes at 516 g/t silver (22.9 million ounces) of indicated resource and 107,000 tonnes at 313 g/t silver (1.1 million ounces) of inferred resource. The deposit encompasses a northerly Christal zone (containing approximately 7.9 million ounces of indicated and 0.6 million ounces inferred silver resource), and the larger southerly Lightning zone (containing approximately 14.9 million ounces of indicated and 0.5 million ounces of inferred silver resource), separated by approximately 90 meters of strike-slip movement along the Mill Fault (see news release dated January 31, 2013 “Alexco Expands Flame & Moth Indicated Resource to 22.9 Million Ounces of Silver; Resource Grade Increased, Deposit Remains Open”).

In addition to the extension and infill drilling pursuant to a re-estimation of the Flame & Moth resource, other drilling in the vicinity of the Flame & Moth deposit was conducted as outlined below:

  1. A fence of step-out drill holes approximately 500 meters to the northeast of the Flame deposit located indications of mineralization which could be interpreted as a possible extension of the Flame structure. Although the correlation cannot be confirmed without additional drilling, the structure is inferred to continue in this direction within the favorable Keno Hill quartzite host rock lithology, with the potential for the discovery for additional mineralization similar to the Lightning and Christal zones. In total, silver mineralization has now been identified over 1,700 meters of inferred strike length along the Flame structure.
  2. Additional drilling (four holes, 977 meters) of the previously identified Flame West vein (formerly known as the Bulldozer vein) that lies subparallel to the Flame vein has confirmed this occurrence to be within a significant mineralized structure with a best 2014 intercept of 21.24 opt silver over a 1.3 meter interval. However, continuity of higher grade mineralization has not been established and the definition of the northern extension of this structure through the Christal Lake Corridor remains a priority exploration target.
  3. Geotechnical drilling of 249 meters in five holes was completed along the proposed trace of the Flame & Moth decline (see news release dated December 23, 2014 entitled “Alexco Updates Positive Preliminary Economic Assessment for Expanded Silver Production from Keno Hill Silver District, Yukon”).
  4. Three drill holes were also completed along the Christal Lake corridor.

It is notable that a number of holes drilled down-plunge of the Lightning Zone intercepted broad zones (to approximately 5.0 meters) of strongly mineralized but lower silver grade intervals including the presence of massive sulfides indicating continuation of a robust mineral system to depth to the southwest. Further exploration of this area will be undertaken as part of future underground activity. Updated composite assay tables, along with a drill hole location map and a long section plot for 2014 drill holes completed at the Flame & Moth prospect are appended to this release, and are also available for review on the Company’s website at www.alexcoresource.com.

Alexco is currently planning a 2015 exploration program to follow up successful results returned from the 2014 surface drilling program. Focus in 2015 will likely be on Bermingham where robust silver mineralization encountered in 2014 appears to be vectoring toward a stratigraphic – structural setting similar to the historic Hector Calumet deposit (see news release dated November 5, 2014 entitled “Alexco Drills Best Hole Ever: Intersects 5,667 Grams Per Tonne Silver Over 6.39 Meters (true width) at Bermingham; Mineralization Extended and Remains Open”). Additionally, 2015 exploration may address shallow surface drilling alternatives in the Christal Lake corridor where several areas of satellitic silver mineralization have been identified from 2014 work.

The 2014 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. 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 Territory for preparation, with fire assay, multi-element ICP analyses and ore grade over limits 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 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, was Canada’s only operating primary silver mine from 2011 to 2013. Alexco is currently undergoing an interim suspension of operations at Keno Hill in order to decrease costs and reposition the District for long-term, sustainable operations. 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. 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.

Contact

Clynton R. Nauman, President and Chief Executive Officer
Vicki Veltkamp, Vice President – Investor Relations
Phone: (604) 633-4888
Email: [email protected]
Please visit the Alexco website at www.alexcoresource.com

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