Alexco Resource reports NI 43-101 compliant preliminary economic assessment(PEA) Bellekeno deposit, Keno Hill silver district, Yukon Territory.

The PEA results indicate a project with average annual mine production of 3.3 million ounces of silver, 30.1 million pounds of lead and 24.5 million pounds of zinc over an initial 5 year mine life. The PEA indicates a base case pre-tax net present value ("NPV") of US$87.0 million at an 8% discount rate with a pre-tax internal rate of return ("IRR") of 55.5% and a payback period of 1.6 years. The base case uses three year average prices for Ag, Pb and Zn and the $USD/$CAD exchange rate. At current metal prices, the NPV increases to US$106.7 million with an IRR of 64%. The average Life of Mine ("LOM") net smelter return ("NSR") per tonne of ore is C$596 against LOM operating costs of C$206 per tonne of ore, and the average silver production costs on a per-ounce basis, net of by-product revenue, is negative (US$0.33/oz).

President and CEO of Alexco, Clynton Nauman comments,

"The results of the scoping study are very encouraging and an important milestone in the advancement of the Bellekeno deposit. With the release of the Bellekeno PEA, commencement of the underground decline into the Bellekeno workings and our recent signing of a Cooperation Agreement with the First Nation of Nacho Nyak Dun, Alexco is well positioned to move the Bellekeno project to a production decision in early 2009 with a target of commercial production in early 2010. We are also well positioned to advance other deposits in the district to a production decision stage in the short term."

For full details of this press release, click this link. ^[1] Silver Investing News researchers discovered 's Alexco's Bellekeno project described on their website ^[2]. Follow developments in silver mining and exploration for free. Sign on to the Silver Investing Newsletter ^[3].