VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 17, 2013) - Alexco Resource Corp. (TSX:AXR)(NYSE MKT:AXU) today reports silver production of 576,155 ounces during the second quarter of 2013 from its Bellekeno mine, located in the Keno Hill Silver District in Canada's Yukon Territory. Second quarter silver production increased 52% compared to the first quarter and for the first six months of 2013, silver production totaled 955,772 ounces. Improved second quarter performance was a result of a 27% increase in mill throughput to an average of 283 tonnes per day, as well as an 18% increase in grade to an average 751 grams per tonne, relative to the first quarter.

Alexco's President and Chief Executive Officer, Clynt Nauman, said, "The second quarter was one of our best quarters since initiation of production in early 2011, as the mine sequenced toward interior portions of the Southwest and 99 ore zones. Overall tonnes and grade for the first six months were as targeted with approximately 46,000 tonnes milled at an average grade of 700 grams per tonne. The contrasting side of this good news is the negative impact the metals prices are expected to have on financial results for the quarter, which all miners are currently experiencing."

As a result, Alexco has developed a contingency plan to operate through the summer while beginning preparations to undergo a temporary and orderly suspension of operations at the Bellekeno mine and mill prior to the onset of winter. This avoids selling silver at current or weaker market prices, and positions the mine and mill for a re-opening after the winter, assuming the silver market has improved from current levels and underlying fixed costs have been reduced. Alexco plans to use the winter period to significantly restructure the underlying fixed costs at Keno Hill, as well as refine plans for a production ramp-up to 400 tonnes per day in the 2014 - 2015 time period. To that end, Alexco continues to move forward with a preliminary economic assessment that includes the currently known resources at Bellekeno, Onek, Lucky Queen and the new discovery at the Flame & Moth. The Company will also commence the environmental assessment for the initial development of the Flame & Moth deposit.

Nauman said, "This has been a difficult decision, but we feel it is a prudent move to ensure optimization of future production costs, while saving the cost of winter operations. Along with reviewing our fixed costs, we will specifically be looking at our third party agreements with a view to better ensuring the longer term sustainability of the Keno Hill operations."

Regarding Alexco's ongoing exploration programs, Nauman said, "We are going to continue to focus on our surface and underground exploration which we believe will show favourable results in 2013, utilizing the flow through funds raised earlier this year. Surface exploration to expand the Flame & Moth deposit certainly looks quite interesting, as does drilling further afield in the Flame & Moth vicinity. Our success in exploration in the Keno Hill Silver District continues to show us that we have not yet unlocked the full value of this District, and we have every intention of doing so."

Activities such as Alexco's reclamation and remediation work in the District, the Alexco Environmental Group's business operations and the planned Keno Hill exploration program will go forward as planned.