Alexco Reports Lower Silver Production in Q2 2012

on Jul 19, 2012

Alexco Resource Corp. (TSX:AXR)(NYSE MKT:AXU)(NYSE Amex:AXU) released a quarterly report on June 16, announcing its silver production for the second quarter of 2012. With 458,472 ounces, the second three months of the year saw a lower silver output compared to Q1. However, 2012 has been successful for the company so far, with a total production of 1,040,257 ounces of silver for the first six months – a nearly 14% increase on the first six months of last year. Lead and zinc production were at 3.7 million pounds and 1.3 million pounds respectively, with the Bellekeno mine in the Keno Hill Silver District, Yukon currently in its second year of operation. The mine is one of the company’s several properties in that region.

!m[](/uploads/story/171/thumbs/pic1_inline.png)Lower production isn’t that concerning, as, according to company’s executives, it was expected. It was caused by underground operations sequencing through lower grade material. The operations aimed to position the mine for increased production capacity in Q3 and beyond. Alexco President and CEO Clynt Nauman said that “there is no question we continue to make progress on ramping up mill throughput, and we look forward to an improved second half in 2012.” But according to him, the biggest challenge will be to put the company’s two new mines in operation. Alexco is planning on production starting from the new mines in the fourth quarter of 2012. The development of those properties is well advanced, but authorization procedures and additional environmental assessments may delay commissioning until early 2013. Despite the possibility of a delay, the company remains confident that it’ll be able to maintain the earlier production forecasts for 2.2-2.5 million ounces of silver produced in 2012. According to Nauman, Alexco is doing everything to compensate for the possible delay.

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Mr. Nauman was extremely pleased to announce that new estimates made in the second three months of 2012 show a dramatic increase of the company’s silver resources at the Flame & Moth and
Bermingham deposits. Nearly 114 million ounces of indicated silver resource and approximately 5 million ounces of inferred resources have been identified – a staggering 52% increase of Alexco’s resources at the Keno Hill mines. That was the real silver lining for the company in Q2, 2012.

**About Alexco Corp.**
Alexco Resource Corp. owns and operates the Bellekeno silver mine, located in the Keno Hill Silver District, Yukon. Bellekeno. Canada’s only primary silver mine, Bellekeno started operating in 2011 as a part of Alexco’s strategy of developing the potential of Keno Hill. The company plans to be able to produce from 7 to 10 million ounces of silver per year within 10 years.
Alexco has several other mineral operations in the district. The company provides a wide array of services, including environmental services, remediation technologies and others that are available to government clients and companies operating in the industry through the Alexco Environmental Group.


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