Yukon Territory Mining

[Lone Clone]

Alexco Announces Amendment of Water Use Licence at Keno Hill and Other Developments

https://finance.yahoo.com/news/alexco-announces-amendment-water-licence-035500469.html

PR NewswireDecember 28, 2017

VANCOUVER, Dec. 28, 2017 /PRNewswire/ - Alexco Resource Corp. (NYSE-American:AXU, TSX:AXR) ("Alexco" or the "Company") is pleased to announce that it has received an amendment to its Water Use Licence from the Yukon Water Board for the development and operation (and eventual closure) of the Flame & Moth mine. The Flame & Moth underground mine, located adjacent to the existing Keno Hill District mill, comprises a potentially mineable 683,000 tonnes of 666 grams per tonne ("g/t") silver and is anticipated to be the primary production source for mine operations in the Keno Hill Silver District (RPA, 20171).

Clynt Nauman, Alexco CEO and Chairman commented, "The receipt of the Flame & Moth Water Use Licence amendment is the final permit and regulatory authorization required for production from the Flame & Moth mine. Receipt of this licence amendment is a milestone in our journey toward mine operations and has involved the cooperation and support of our many stakeholders and partners, including the First Nation of Nacho Nyak Dun."

In addition to Flame & Moth, the Bellekeno, Lucky Queen and Onek mines are also fully permitted for operations in the Keno Hill Silver District. In November 2017, the Company submitted a further Project Proposal to the Yukon Environmental Socioeconomic Assessment Board for environmental assessment of the development, operations and eventual closure for the Bermingham mine. Bermingham is anticipated to contribute approximately 220,000 tonnes of 1,276 g/t silver toward the approximately one million tonne and more than 27 million silver ounce mine production stream outlined over eight years in the PEA mine plan1. Approximately 5,000 meters ("m") of underground exploration and in-fill drilling of the Bermingham deposit will commence later in Q1 2018 upon completion of the currently active 580 m Bermingham exploration decline. Results of the drilling along with other work will contribute to a pre-feasibility study anticipated to be completed in Q3 2018.

In other business, Alexco announces that it has restructured its US environmental division. In this restructuring, Alexco's wholly-owned subsidiary, Alexco Environmental Group Inc. ("AEG Canada") has entered into a share purchase agreement with Arete Property Holdings LLC ("Arete") for the purchase by Arete of all of the issued shares of Alexco Environmental Group (US) Inc. ("AEG US") and its wholly-owned subsidiary, Alexco Financial Guaranty Corp. (collectively with AEG US, the "AEG US Group") for nominal consideration. Arete is wholly-owned by Mr. James Harrington, Senior Vice President and Chief Technical Officer of AEG Canada.

As a result of this transaction, a new Colorado affiliate of AEG Canada, Alexco Water and Environment Inc. will seamlessly continue current and future environmental work in the United States. AEG US Group, together with initial funding provided by AEG Canada required for ongoing administrative and corporate responsibilities, will become subsidiaries of, and will be directly managed by Arete to pursue certain property negotiation rights and further capital opportunities.

Mr. Nauman commented, "The restructuring of Alexco's US environmental division is merely an initial step in facilitating AEG's ability to pursue significant opportunities for new brownfields-related environmental work and revenue while also prudently managing the parent company balance sheet."