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Having announced commercial production in early January, Alexco Resource (TSX: AXR) released its first, full quarterly results as a silver producer at its Bellekeno mine in the Yukon.

"This was a historic, milestone quarter for us," Alexco President and CEO Clynt Nauman said in a statement.

Nauman proudly hung the results - strongly in the black - next to the challenges Alexco faced ramping up a mine in Canada's north as a first time producer. "We've started off well, despite the challenges of ramping up a mine in the middle of winter in the Yukon," he said.

Alexco's first quarter net income of C$3.5 million came on sales of 3,083 tonnes lead-silver and zinc concentrate. An average realized silver price of US$39.88 helped drive the profit; overall Alexco got US$1.20 per pound lead and US$1.07 per pound zinc.

Net revenue was C$18.8 million and cash costs of production were C$8.88 per ounce silver net of byproducts. In the first quarter Alexco produced 447,524 ounces silver, 3,682,304 pounds lead and 1,334,144 pounds zinc.

For this year Alexco maintained its production guidance of 2.8 million ounces silver, 18 million pounds lead and 8 million pounds zinc. Alexco's mine plan at Bellekeno calls for mining of an indicated resource of 321,941 tonnes @ 871 g/t silver, 9.5 percent lead and 5.6 percent zinc.Alexco aims to add and update resources with initial resource estimates from the nearby Onek and Lucky Queen properties, as well as with a new resource estimate for Bellekeno expected out mid-2011. Meanwhile, with plenty of cash to fund exploration - Alexco has C$45.2 million in the bank following a C$39 million financing - Alexco is looking for more mineable resources at its Bermingham and Flame & Moth areas.

At the latter target Alexco recently hit as much as 4 metres @ 1,712 g/t Ag, 1.5 g/t gold, 8 percent Pb and 9.8 percent Zn.

Alexco is off to a good start in the Yukon; its first full quarter of production generated a healthy profit, and guidance remains steady.
RESOURCES: http://www.mineweb.com/mineweb/view/mineweb/