Alexco Resource up 20%, drills 10.4 metres of 44.3 ounces per tonne silver at Keno Hill in Yukon

Alexco Resource (TSX: AXR)(NYSE Amex: AXU) has expanded its Onek Zinc-Silver deposit at Keno Hill, Yukon, drilling 10.4 metres of 44.3 ounces per tonne of silver, it said Wednesday.

The results are from the company's 2010 core drilling program at Keno Hill. Exploration and infill drilling in the area of the historical Onek underground and open pit mine, in the eastern part of Keno Hill, identified an upper silver rich zone of mineralization with associated high grade zinc, and locally lead, over significant widths, the company said.

The historical Onek mine area is located approximately 1.5 kilometres northwest of the Bellekeno silver-lead-zinc deposit, and approximately 1 kilometre from the newly completed Bellekeno mill, currently being commissioned for commercial silver production in 2010.

The 2010 drill program, combined with earlier Alexco work, confirms that high grade zinc-silver mineralization extends at least 400 meters along strike, 220 meters down dip, and remains open to the southwest and down plunge.

Results from 18 of 20 holes drilled in the area have been received and include hole DDH K10-265, which returned 1,518.6 grams per tonne silver, 1.003 grams per tonne gold, 17.93% lead and 3.15% zinc over 10.42 metres from 53.79 to 64.21 metres; and hole DDH K10-254, which intersected 834.4 grams per tonne silver, 1.194 grams per tonne gold, 6.68% lead and 21.84% zinc over 7.30 metres from 122.0 to 129.40 metres.

In addition to silver, lead, zinc and gold, the 2010 drilling also encountered significant indium mineralization in multiple drill holes including 8.86 meters grading 472 ppm indium, in DDH K10-250 from 127.34 to 136.20 meters.

The 2010 drill program focused mainly on expanding the upper, more silver-rich mineralization, as defined in the historical Onek resource by the property's former owner, United Keno Hill Mines. The Onek mine had reported past production totaling 93,000 tons averaging 13.77 ounces per ton silver, 5.54% lead and 3.43% zinc.

Alexco plans to complete an interim NI 43-101 compliant resource estimate for Onek through October 2010, primarily to rank the deposit as part of an ongoing district-wide development plan.

The Keno Hill exploration program is currently projected to continue in to the winter, and a decision will be made later this year regarding the number of drills that will be retained for continuing winter-spring operations in 2011.

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, which would rank Keno Hill in the top 3% by grade of today's global silver producers.

Alexco was up roughly 20% to $5.75 as of 1:08pm ET on Wednesday.