Excellon Provides Production & Exploration Updates
TORONTO, ONTARIO -- (Marketwire) -- 02/22/11 -- Excellon Resources Inc. (TSX: EXN) reports that production at the Platosa Mine continues to improve as a result of substantial progress in water inflow control. Water inflows occur when mining encounters water-filled faults. The Company began a more intensive grouting program in the late summer of 2010. An underground diamond drill remains dedicated to drilling 25- to 50-metre long sub-horizontal grout cover holes in advance of production and development headings to seal off these faults. The Company is acquiring additional pumps and has upgraded electrical infrastructure as it continues to enhance the Platosa water management program.
Actual and Forecasted production for the fourth quarter of 2010 are shown in the table below.
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Forecast
Actual November 15, 2010
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Ore Milled (t) 12,153 11,200
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Head Grades
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Silver (g/t) 725 600
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Silver (oz/T) 21.1 17.5
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Lead (%) 5.12 5.20
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Zinc (%) 5.01 5.20
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Actual silver grade was higher than forecast in 2010 although total production was lower as a result of a sudden water inflow in August. Results are shown in the table below.
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Actual Forecast
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Ore Milled (t) 64,462 72,000
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Head Grades
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Silver (g/t) 814 793
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Silver (oz/T) 23.7 23.1
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Lead (%) 6.37 7.2
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Zinc (%) 7.68 7.8
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Payable Metal Sold
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Silver (oz) 1,181,181 1,600,000
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Lead (lb) 5,409,917 9,200,000
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Zinc (lb) 6,760,712 7,500,000
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Operations 2011
Estimated production volumes and grades for the twelve months ending December 31, 2011 are lower than those of 2010 due to the additional mine development required to access the Rodilla and 623 mantos.
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2011 Forecast
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Ore Milled 57,000
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Average Head Grades
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Ag (g/t) 793
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Ag (oz / T) 23.1
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Pb (%) 7.2
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Zn (%) 7.8
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Exploration
The Company received preliminary results from the Geotech ZTEM airborne geophysical survey in mid-December. These data are undergoing detailed interpretation and results are expected in early March. In the meantime Company geologists have begun reconnaissance soil geochemical surveys on ZTEM responses outlined on the preliminary maps. ZTEM has depth penetration beyond that of most airborne systems and is particularly effective at detecting structures at depth. Structural networks are fundamental controls on the style of Carbonate Replacement Deposit (CRD) being exploited at Platosa and lead to their proximal source, which is the ultimate object of the Company's exploration.
Early 2011 exploration is focused on the following three areas:
-- The corridor between the 6A/6B Manto and the Rincon del Caido area 1.5
km to the northwest - Indications of a proximal environment where we
might expect to find a large-tonnage deposit were found at Rincon del
Caido in mid-2010 as were new massive sulphides leading northwest from
6A/6B. As previously disclosed 23 holes intersected high-grade massive
sulphides in the extension of this manto in 2010. The area between
Rincon del Caido and the 6A/6B Manto is considered to hold very high
potential;
-- The Pierna Manto area - As disclosed previously seven holes have
intersected high-grade massive sulphides in this manto. Among these
holes LP875 intersected 6.10 metres (m) of massive sulphides grading
1,489g/t (43 oz/T) Ag, 10.65% Pb, 21.63% Zn. Hole LP884 intersected
10.76 m of massive sulphides grading 651g/t (19 oz/T) Ag, 7.86% Pb,
15.79% Zn. The surrounding area is largely open for additional massive
sulphide discovery, but perhaps more importantly, Pierna may also lead
towards Rincon del Caido; and
-- 3D IP anomalies outlined and drilled in late 2010 - To date these
anomalies have been explained by pyritized hornfels and black limestone.
While no values have been found it is encouraging that significant
amounts of sulphides were intersected. Additional drilling and further
review of the 3D IP data, taking into account these drilling results
will be carried out early in the year.
Qualified Person
Mr. John Sullivan, BSc., PGeo. Vice President Exploration of the Company, is the Qualified Person, as defined in National Instrument 43-101, for the exploration portion of 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 and holds common share purchase options.
To view the Location Map - Platosa Property, please visit the following link: http://media3.marketwire.com/docs/PlatosaProperty.pdf.
About Excellon
Excellon, 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 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. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system. The equally large Miguel Auza property hosts an Indicated and Inferred Mineral Resource and was the site of considerable historic mining for silver, (gold), lead and zinc. The exploration potential of Miguel Auza remains to be fully evaluated and an initial exploration program was completed in the fall of 2010.
On behalf of EXCELLON RESOURCES INC.
Peter Crossgrove, Chairman & Chief Executive Officer
This 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 www.sedar.com 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.
The 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.
Contacts:
Excellon Resources Inc.
Morgan Knowles
Director, Investor Relations
(416) 364-1130
mknowles@excellonresources.com
www.excellonresources.com