Alexco’s silver intersects in the Yukon

Assay results from Alexco Resource‘s (AXR-T) Keno Hill project in the Yukon sent the Vancouver-based company’s shares rocketing.

In Toronto on Nov. 4, Alexco shares shot up nearly 27% or 80 to $3.80 on roughly 230,000 shares.

The Keno Hill project sits within the Mayo mining district, and is located 330 km north of Whitehorse.

Results from the initial seven holes around the past producing Silver King mine are highlighted by:

• Hole DDH K06-002 – 1 metre from 166.8 to 167.8 metres, grading 93.6 oz per ton silver and 1.65% lead; and 1 metre from 299 to 300 metres grading 79 oz. per ton silver
• Hole DDH K06-006 112 – 1.4 metres from 248.4 to 249.8 metres 112 oz.per ton silver
• Hole DDH K06-009 – 1.04 metres from 130.36 to 131.4 metres grading 72 oz. per ton silver and 24.1 grams gold.

Thus far, Alexco has drilled 33 holes and 9,200 metres with the majority targeting known mineralization in areas around seven past producing silver mines — Silver King, Husky, Husky Southwest, Lucky Queen, Shamrock, Ruby and Bellekeno mines.

The former mines extended along the 18 km Keno Hill silver belt.

The drill program is being managed by the NovaGold Resources (NG-T, NG-X) exploration team on behalf of Alexco.

The latest assays are from five of the seven initial drill holes completed, and the company says the holes at Silver King targeted the down-dip and along-strike extension of the historic mine.

In addition to Silver King, holes drilled at the other six historical mines encountered mineralized intervals with galena, sphalerite, ruby silver and native silver in widths varying from 1 metre to 10 metres, Alexco says. Assays for those holes are pending.

In contrast to what Alexco refers to as “more discrete” lead-zinc-silver veins in the Bellekeno area, the company says initial results from Silver King mean there is a possibility of bulk mineable widths.

True widths have not yet been determined at any of the drill intercepts.

Based on 2006 results, the company says it plans 30,000 metres of diamond drilling for the coming year.

The Keno Hill district produced more than 217 million oz of silver with average grades of 40.5 oz per ton silver, 5.6% lead and 3.1% zinc between 1921 and 1988 making it the second-largest historical silver producing district in Canada.

Alexco specializes in closed or abandoned mine sites. The company manages environmental services, executes mine reclamations and closure as well as rejuvenating exploration and development activity at some sites.