Alexco Resource Corp. (NYSE American: AXU) (TSX: AXU) reports financial results for the quarter ended June 30, 2021. The Company also provides an update on capital development projects, scale up of mining operations, and exploration activities at Keno Hill.

Q2 2021 Highlights

• 22% Increase in Mineral Reserves at Keno Hill: On May 26, 2021, the Company announced the expansion of Mineral Reserves by 22% or 270,000 tonnes to 1.44 million tonnes, grading an average 804 grams per tonne silver, 3.84% zinc, 2.64% lead, 0.31 g/t gold, or approximately 1,035 g/t Ag equivalent¹. The updated reserve mine plan is projected to produce over 35.5 million ounces of Ag over the next 8 years.
• Mill Performance, Throughput and Recovery on Track: Since initial commissioning in December 2020, the mill has been operating on a modified schedule (primarily to match ore production from the Bellekeno mine) and saw throughput of 176 tonnes per operating day in Q2 2021 as ramp up continues towards 400 tpd. For the first six months of 2021, mill throughput totaled 14,726 tonnes at 773 g/t Ag. Installation of cyclones, the addition of a new tailings filter press, installation of a new fine ore feeder, and construction of a new building around the crusher have all been completed as planned at the mill. For Q2 2021, Ag recoveries averaged 93%, with 94% of Ag reporting to the Pb concentrate.
• On Track to Reach Bermingham and Flame & Moth Ore in Second Half of 2021: Underground development rates have increased since the first quarter of 2021, and the Company has contracted additional underground miners and maintenance technicians to supplement internal staffing and resources and to increase advancement rates.
  • Bellekeno: Ore production is expected to be complete in the third quarter of 2021 after which equipment and operators will be redeployed to Bermingham and Flame and Moth.
  • Bermingham: Initial ore production anticipated in Q3 2021.
  • Flame & Moth: The main ramp has reached the first ore access level and advancement of this level to crosscutt the ore is underway, with initial ore production anticipated in the fourth quarter of 2021 (“Q4 2021“).
• Bermingham Northeast Deep Zone Exploration Program Results Expected: To date, approximately 11,500 meters have been drilled using directional drill technology; a total of more than 50 intercepts are targeted on the mineralized vein zone, with initial drill results anticipated to be available in late August.

Key Performance Metrics

Outlook and Strategy

Clynt Nauman, Chairman and CEO, commented, “During the second quarter, we made good progress at Keno Hill, increasing mine reserves by 22% and ramping up mill throughput by 65% over Q1 2021, while maintaining strong metallurgical performance, both from a recovery and payability perspective. We continue to be extremely focused on increasing our underground development rates, and we remain on track to reach Bermingham and Flame & Moth ore in the second half of 2021. We do caution investors however that the longer term continuation or increased COVID-19 related workplace restrictions, slower than forecasted development advance rates or recruitment of underground miners and maintenance technicians, may have the effect of extending our scale-up period. The directional drilling campaign at the Bermingham Northeast Deep zone has given us a significant amount of high-quality information and we are looking forward to sharing those initial results with the market in late August, once assay results are available.”

Qualified Persons

The disclosure in this news release of scientific and technical information regarding exploration projects on Alexco’s mineral properties has been reviewed and approved by Alan McOnie, FAusIMM, Vice President, Exploration, while that regarding mine development and operations has been reviewed and approved by Neil Chambers, P.Eng., Chief Mine Engineer, both of whom are Qualified Persons as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Alexco

Alexco is a Canadian primary silver company that owns and operates the majority of the historic Keno Hill Silver District, in Canada’s Yukon Territory, one of the highest-grade silver deposits in the world. Alexco is currently advancing Keno Hill to production and commenced concentrate production and shipments in Q1 2021. Keno Hill is expected to produce an average of approximately 4.4 million ounces of silver per year contained in high quality lead/silver and zinc concentrates. Keno Hill retains significant potential to grow and Alexco has a long history of expanding the operation’s mineral resources through successful exploration.