Alexco Resource Corp (AXU)

[kiwisteve]

Alexco Resources (AMEX: AXU or TSE: AXR).

Alexco has a dual-focus business model in which they are engaged in a profitable environmental consulting/reclamation/mine closure business, but also own a project in one of the highest grade silver districts in the world – Keno Hill.

The Keno Hill Silver District has produced more than 217 million ounces of silver with average grades of 40 oz/ton silver, making it the second-largest historical silver producer in Canada.

Despite this impressive history, Alexco believes just 5% of the area has been explored. With low silver prices in 1989, the Keno Hill project was forced into government receivership and had huge environmental liabilities.

Alexco was brought in by the government to clean it up, realized the value of the project and in December of 2007 became 100% owner.

Silver Wheaton (SLW) has since taken a stake in Alexco’s future production, which should give you further confidence in the potential of their properties.

Alexco recently completed a $25.7 million financing for continued development of the Bellekeno mine, which is on track to commence production during Q3 of this year.

In addition to this near-term production, Alexco has begun an aggressive exploration program for 2010 which has the potential to significantly increase their resources.

I believe Alexco has blue-sky potential and could easily double in value over the next 12-24 months even if silver prices only advance modestly. If silver makes new highs by the end of 2010 as I suspect, shares of Alexco could see an astronomical increase.

Jason Hamlin -Author Disclosure:
I own shares of Alexco, but have not been compensated in any way to write about the company.


The above commentary was copied from the article - Silver Short Squeeze: Once in a Lifetime Opportunity?
http://seekingalpha.com/article/199037-silver-short-squeeze-once-in-a-lifetime-opportunity?source=yahoo