Excellon Announces Initial Drill Results From Its Desantis Project, Ontario, Including 3.63 Grams Per Tonne Gold Over 23.17 Metres in Hole DS11-010A
TORONTO, ONTARIO -- (Marketwire) -- 10/18/11 -- Excellon Resources Inc. (TSX: EXN) ('Excellon' or 'the Company') is pleased to announce initial drill results from its DeSantis Project, located near Timmins, Ontario. Results from the first 10 holes of the current drill campaign include an intersection of 3.63 grams per tonne (gpt) gold over 23.17 metres (m) including 14.25 gpt over 1.17 m returned from drill hole DS11-010A, which targeted the Hydrothermal Alteration Zone ('HTAZ').
As follow-up to drilling conducted by Lateegra Gold Corp. ('Lateegra') in 2010, Lateegra re-commenced drilling on the DeSantis property in June 2011, focusing initially on the HTAZ, a zone where previous mining and a historic resource estimate found 117,000 tonnes grading 9.09 gpt Au contained in areas proximal to the historic DeSantis mine workings. A Qualified Person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon. Following its acquisition of Lateegra in August 2011 whereby Lateegra became a wholly-owned subsidiary of Excellon, Excellon has continued the program.
To date in 2011 twelve drill holes have assessed the HTAZ, three holes have tested exploration targets elsewhere on the property, and drilling has recently commenced on the Albitite Zone. A total of 4,190 m of core drilling has been completed in this campaign. Drill testing of potential extensions to the Albitite Zone is expected to continue with a minimum of four holes totaling approx. 3,000 m, contingent on results. Assay results for completed drill holes are summarized in the following table:
2011 Drill Program Results Summary:
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DDH No. From To (m) Au (gpt) Intercept Length (m)
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DS11-001 188.00 188.92 1.81 0.92
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DS11-002 a) 168.90 169.57 4.81 0.67
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b) 366.45 368.40 4.30 1.95
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c) 370.20 370.90 1.39 0.70
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d) 374.20 375.05 1.34 0.85
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DS11-003 a) 85.50 86.40 2.05 0.90
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b) 290.89 291.23 1.34 0.34
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DS11-004 289.50 290.50 1.06 1.00
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DS11-005 a) 321.84 323.00 1.56 1.16
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b) 406.60 407.55 1.10 0.95
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c) 410.30 410.75 2.46 0.45
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DS11-006 No significant intercepts
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DS11-007 388.00 389.50 1.09 1.50
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DS11-008 154.29 154.81 5.68 0.52
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DS11-009 248.00 249.45 6.02 1.45
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DS11-010 Hole abandoned
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DS11-010A a) 194.74 196.00 1.63 1.26
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b) 199.00 222.17 3.63 23.17
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Including: 221.00 222.17 14.25 1.17
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Excellon is encouraged by these initial results, and once analyses are complete, will re-assess geological interpretations and the potential for additional follow-up drilling with the goal of further zone expansions.
Excellon's DeSantis Project is located in the heart of the prolific Timmins gold camp, which has produced over 70 million ounces of gold since the start of mining in the early 1900s. The property is situated along the Destor-Porcupine Tectonic Zone ('DPZ'), the main structure controlling gold deposits in the region, approximately 5 km southwest of downtown Timmins, 11 km west of the Dome Mine, currently owned and operated by Goldcorp Inc. and 14 km east of Lake Shore Gold Corp.'s Timmins Mine. The DeSantis property covers nearly 5 km of strike length within highly prospective volcanic stratigraphy on the north side of the DPZ, including the past producing DeSantis Mine. The DeSantis Mine produced approximately 35,800 ounces of gold from ore which graded 6.2 gpt gold during its intermittent production history. The main production shaft, the DeSantis No. 2 Shaft, was rehabilitated during an advanced exploration program conducted by Noranda Inc. and Stan West Mining Corp. in the mid-1980s, which was the last major exploration effort on the property.
Excellon, currently owns a 51% interest in the DeSantis property and holds an option to acquire a 100% interest in the DeSantis West property. Excellon, through its wholly-owned subsidiary Lateegra, has the option to acquire the remaining 49% interest in the DeSantis property by paying an additional $375,000 and issuing an additional 2.5 million shares to the property vendor. The Company can acquire the 100% interest in the DeSantis West property by paying an additional $35,000, issuing 150,000 shares, and completing $150,000 in exploration expenditures on that property.
Reporting of Historical Work
Certain of the exploration results reported on in this news release are based on historical work by others and are identified in the preceding as such. Those reports of work cannot and have not been fully verified by Excellon. Investors or potential investors should take this into account.
Drilling, Assaying and QA/QC
The Company's exploration programs are subject to QA/QC and security programs, which conform to industry-standard best practices and are in compliance with NI 43-101.
The current phase of diamond drilling on the DeSantis Project is being conducted by Bradley Bros. Drilling Ltd. Analytical work is being performed by ALS Chemex Ltd., an ISO 9001-2000 registered laboratory with internal QA/QC procedures. Excellon utilizes, as part of its' QA/QC program, the insertion of standard reference materials and blanks representing approximately 5% of the total sample population. Drill core is sampled according to standardized technical procedures, which include the core being sawn in half, half of the core being retained, while the other half is sampled for gold analysis via Fire Assay-Atomic Absorption finish using a 50 g assay aliquot. Intervals were visible gold has been identified are analyzed via gravimetric or screened metallic procedures. Samples are securely packed for shipment utilizing security seals noted on Chain of Custody documents, which are confirmed as intact upon receipt at ALS's sample receiving facility.
Qualified Person
Excellon's Canadian exploration programs are conducted under the supervision of its Vice President of Exploration for Canada Ms. Heather Miree, P. Geo. Ms. Miree is a Qualified Person as defined by NI 43-101, and has prepared or supervised the preparation of portions of the scientific or technical information in this press release and has verified the data contained herein.
Ms. Miree is an economic geologist with over 25 years of experience in the mineral industry. Ms. Miree has held senior geological and supervisory roles with several junior and mid-sized mining companies, in the areas of exploration and operations. Ms. Miree is not independent of Excellon as she is an officer of the Company.
About Excellon
Excellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, and Ontario and Quebec, Canada, 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. Excellon also has on-going gold exploration programs on the DeSantis Project, located near Timmins, Ontario and the Beschefer Project, located in northwestern Quebec. Both these projects host known gold mineralization and significant potential for the discovery of additional mineralization.
On behalf of EXCELLON RESOURCES INC.
Jeremy Wyeth, President and 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.
(416) 364-1130
info@excellonresources.com
www.excellonresources.com