The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

Excellon Announces New High-Grade Assays from Platosa 912 g/t (27 oz/T) Ag, 8% Pb, 12% Zn Over 3.53 m in Hole EX11-LP942 and Provides A General Mexican Exploration Update

Monday, October 17, 2011

Excellon Announces New High-Grade Assays from Platosa 912 g/t (27 oz/T) Ag, 8% Pb, 12% Zn Over 3.53 m in Hole EX11-LP942 and Provides A General Mexican Exploration Update08:36 EDT Monday, October 17, 2011TORONTO, ONTARIO--(Marketwire - Oct. 17, 2011) - Excellon Resources Inc. (TSX:EXN) ("Excellon" or "the Company") is pleased to announce assays for nine holes, all from the immediate mine area on its 100% owned Platosa Property in Durango State, Mexico. The best hole was LP942, off the southeast corner of the Rodilla Manto, which intersected 3.53 metres (m) of massive sulphides grading 912 g/t (26.6 oz/T) Ag, 8.36% Pb, 12.48% Zn. Hole LP919, on the northern fringe of the high-grade Pierna Manto intersected 142 g/t (4.1 oz/T) Ag, 5.59% Pb, 6.28% Zn over 1.58 m.Recent diamond drilling has focussed on two goals. One was to drill several close-spaced holes on the northern fringe of the Guadalupe Manto, where underground development indicated the presence of more sulphides than the resource model. This work provided increased confidence that there were areas where additional mining beyond the previously defined limits was warranted. The second goal was to fill in gaps in the area between the Rodilla, 623 and NE-1 mantos. Mine development is progressing towards the 623 Manto and the presence of additional sulphides in these gaps may influence development plans and lead to early development of mining areas prior to reaching 623. This infill drilling continues with one rig and a second rig has now resumed drilling proximal, large-tonnage deposit carbonate replacement deposit (CRD) targets. These are stratigraphic targets based on several geotechnical parameters but mainly focussed on geology, alteration and mineralization. Initial drilling is in the Rincon del Caido area northwest of the mine where there are already indications of a proximal environment. At the same time we continue to study new interpretation options for the 2010 ZTEM airborne survey data and remain hopeful that additional proximal targets will be defined from these data. In addition, exploration has begun at the Cañón Colorado Rare Earth Elements (REE) discovery area first announced in a press release dated September 27, 2011. Drill road construction is beginning and the Company plans to be drilling by early November. An updated Mineral Resource estimate is nearing completion and the Company expects to announce the results before the end of October. Roscoe Postle Associates Inc. (RPA), a well-known Toronto-based international mining and geological consultancy, is preparing the estimate."We are very pleased with the continued high-grade intersections near the mine and the resumption of drilling on proximal targets designed to find the large-tonnage CRD source of the high-grade mantos presently being exploited," said John Sullivan, Excellon's Vice-President of Exploration for Mexico. "We also look forward to the commencement of drilling at the Cañón Colorado REE exploration program." Assay details for the nine holes are shown in the Table and their locations are shown on Map 2 below. All intervals are estimated true thicknesses. In addition to these nine holes there have been 48 other holes, including three of the ZTEM holes, drilled at Platosa since the exploration press release dated June 27, 2011. While some of these 48 holes encountered sulphides, none intersected values over significant widths. Excellon's drill core samples are prepared and assayed by SGS Minerals Services (SGS) in Durango, Mexico. The lab is accredited to ISO/IEC 17025. The Company has in place a comprehensive QAQC program supervised by an independent Qualified Person. Qualified PersonThe Company's Mexican exploration programs are supervised by John Sullivan, BSc., PGeo., Excellon's Vice-President of Exploration for Mexico, who has acted as the Qualified Person, as defined in NI 43-101, for this disclosure. Mr. Sullivan is an economic geologist with over 35 years of experience in the mineral industry. Prior to joining Excellon in 2007 he was a senior geologist at a Toronto-based international geological and mining engineering consulting firm where he evaluated properties and prepared NI 43-101 reports on gold and base metal projects in Canada and internationally. In addition he has held senior positions with two large Canadian mining companies where he directed major exploration programs, managed field offices, and evaluated projects in Canada, Europe, Africa and Latin America. Mr. Sullivan is not independent of Excellon as he is an officer of the Company.Table: Platosa Assay Results (intervals are estimated true thicknesses) LocationDDH No.Interval From (m)Interval To (m)Interval width (m)Silver (g/t)Silver (oz/T)Lead (%)Zinc (%)Rodilla MantoLP940144.31144.710.401,00129.212.9124.81LP942138.10141.633.5391226.68.3612.48LP953138.14140.101.9686125.15.251.04Rodilla/NE-1 MantosLP927172.21174.402.191273.71.872.98LP929194.02194.670.6555316.13.150.69Rodilla/Guadalupe MantosLP925147.49147.910.421263.71.032.09LP939A140.96141.390.431725.02.355.17Guadalupe MantoLP941149.05150.301.251,07631.43.361.92Incl.149.95150.300.353,39399.011.206.79Pierna MantoLP919212.27213.851.581424.15.596.28To view Map 1: Location Map – Platosa Property, please visit the following link: view Map 2: Platosa Mantos and Recent Drill Hole Locations, please visit the following link: ExcellonExcellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, is committed to building value through production, expansion and discovery. Excellon is producing silver, lead and zinc from the high-grade manto Mineral Resource on its large, 100% owned Platosa Property, strategically located in the middle of the Mexican silver belt. Excellon's focus is on expanding its operating capacity and increasing its Mineral Resources at Platosa where an exploration program focused on diamond drilling and advanced geophysical techniques is ongoing. All of these activities are fully funded through existing cash flow. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system. On behalf ofEXCELLON RESOURCES INC.Jeremy Wyeth, President and Chief Executive OfficerThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, business and financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any minerals produced [particularly silver], the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. All of the Company's public disclosure filings may be accessed via and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties, and particularly the January 15, 2010 NI 43-101-compliant technical report prepared by Scott Wilson Roscoe Postle Associates Inc. with respect to the Platosa Property. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States. FOR FURTHER INFORMATION PLEASE CONTACT: (416) 364-1130Excellon Resources Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release, which has been prepared by management.