Excellon announces updated NI 43-101 resource estimate maintains high-grade mineral resource at Platosa Mine, Mexico
Toronto Stock Exchange - EXN
TORONTO, Oct. 25, 2011 /CNW/ - Excellon Resources Inc.
('Excellon' or 'the Company') is pleased to report the results of the updated Mineral Resource estimate (as at July 31, 2011) for its 100%-owned Platosa Mine located in Durango State, Mexico. The results meet Company expectations and the Platosa Mine remains one of the highest grade producing Ag, Pb, Zn deposits in Mexico.Highlights:
-- New Measured plus Indicated Mineral Resource: 637,000 tonnes
(t) grading 836 g/tonne (24.4 oz/Ton (T)) Ag, 8.95% Pb, 10.58%
Zn;
-- Measured plus Indicated tonnage increased by 10% from that of
the previous estimate (October 31, 2009);
-- Lead and Zn grades are nearly unchanged while the Ag grade has
decreased by 8% as most of the added tonnes have a lower Ag
grade than those mined since late 2009.
-- New Inferred Mineral Resource estimate is 69,000 tonnes grading
1,011 g/t (29.5 oz/T) Ag, 11.35% Pb, 11.34% Zn.
-- Inferred Ag, Pb and Zn grades increased significantly while
tonnage decreased, both as a result of an increased Net Smelter
Return (NSR) cut-off value being used in the 2011 estimate.
The new estimate confirms that the Mineral Resource at Platosa has been maintained since the previous estimate as at October 31, 2009. Taking into account the 109,000 tonnes of production since the previous estimate, total tonnage increased by 10%. The increase in tonnage is derived largely from the Pierna, 6A/6B and NE-1 Mantos. The high-grade Pierna Manto, discovered in late 2010, contributed a Measured plus Indicated Mineral Resource of 45,000 tonnes grading 776 g/t (22.6 oz/T) Ag, 8.80% Pb, 15.94% Zn.
The new tonnages and grades are summarized in the following table and the new manto outlines are shown on the plan map below.
Platosa Project - Summary of July 31, 2011 Mineral Resource Estimate
_____________________________________________________________________________
|Category |Tonnes | Ag | Ag | Pb | Zn |Contained | Contained | Contained |
| | (t) |(g/t)|(oz/T)| (%) | (%) | Ag (oz) | Pb (lb) | Zn (lb) |
|_________|_______|_____|______|_____|_____|__________|___________|___________|
|Measured |88,000 |1,064| 31.0 |9.14 |11.99|3,016,000 |17,760,000 |23,301,000 |
|_________|_______|_____|______|_____|_____|__________|___________|___________|
|Indicated|549,000| 800 | 23.3 |8.92 |10.36|14,104,000|107,918,000|125,248,000|
|_________|_______|_____|______|_____|_____|__________|___________|___________|
| M I |637,000| 836 | 24.4 |8.95 |10.58|17,120,000|125,678,000|148,549,000|
|_________|_______|_____|______|_____|_____|__________|___________|___________|
|Inferred |69,000 |1,011| 29.5 |11.35|11.34|2,241,000 |17,254,000 |17,247,000 |
|_________|_______|_____|______|_____|_____|__________|___________|___________|
Notes:
1. CIM definitions were followed for the classification of Mineral
Resources.
2. Mineral Resources are estimated at an incremental NSR cut-off
value of US$200 per tonne
3. NSR metal price assumptions: Ag US$25.00/oz, Pb US$1.15/lb, Zn
US$1.15/lb.
4. Estimate is of Mineral Resources only and, because these do not
constitute Mineral Reserves, they do not have any demonstrated
economic viability.
5. National Instrument 43-101 compliant Mineral Resource estimate
prepared by David Ross, P.Geo., of Roscoe Postle Associates Inc.,
independent geological and mining consultants of Toronto,
Ontario. Prepared as at July 31, 2011.
6. Totals may not add correctly due to rounding.
Jeremy Wyeth, President and CEO states, 'Our new NI 43-101-compliant Mineral Resource estimate confirms that our drilling program in the immediate mine area, has allowed us to maintain and add to our resource on a continual basis, even as we have mined 109,000 tonnes of ore since the previous estimate. Looking to the future, we remain committed to our aggressive exploration program and are confident that we remain on course to discover the high-tonnage proximal deposit, which is the source of the Platosa Manto system.'
Significant Estimation Parameters
Mineral Resources are reported at an NSR cut-off value of US$200/tonne. Assumptions used for the NSR calculation include metal prices of US$25.00/oz Ag, $1.15/lb Pb, and $1.15/lb Zn. Block Ag, Pb and Zn grades were interpolated and constrained within the wireframe models using the Inverse Distance Squared method. The Platosa drill hole database includes 955 vertical and inclined diamond drill holes totalling 204,736 metres of core. Most holes within the Mineral Resource area are aligned along NE-SW oriented sections spaced 15 metres apart. Average drill hole spacing is approximately 15 to 20 metres. A total of 940 silver, lead and zinc assays were used in the Mineral Resource estimate. Block tonnage was estimated from volume using a bulk density formula derived from the interpolated lead and zinc grades and a regression formula derived from 252 bulk density measurements made on mineralized drill core. The estimate is of Mineral Resources only and, because these do not constitute Mineral Reserves, they do not have any demonstrated economic viability.
A detailed description of the estimation and other pertinent geotechnical information related to the Platosa project will be included in an NI 43-101-compliant technical report being prepared for the Company by RPA and to be filed on SEDAR within the mandated 45 days of this press release.
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 Persons
Mr. John Sullivan, BSc., PGeo., Excellon's Vice President of Exploration for Mexico has acted as a Qualified Person, as defined in NI 43-101, for this disclosure and has supervised the preparation of the technical information, which formed the basis for the updated Mineral Resource disclosed in this press release.
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.
Mr. David Ross, P.Geo., Principal Geologist employed by RPA, acted as the Qualified Person, as defined in NI 43-101, for the Mineral Resource estimate. Mr. Ross is independent of Excellon.
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 ongoing 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 more.
On behalf of
EXCELLON RESOURCES INC.
'Jeremy Wyeth'
President and Chief Executive Officer
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. 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.
SOURCE Excellon Resources Inc.
Image with caption: 'Plan Map of Updated Mineral Resource (CNW Group/Excellon Resources Inc.)'. Image available at: http://photos.newswire.ca/images/download/20111025_C6924_PHOTO_EN_5321.jpg
Excellon Resources Inc.
CONTACT: Excellon Resources Inc.
Joanne C. Jobin, Investor Relations Manager
(647) 964-0292 or (416) 364-1130
Email: info@excellonresources.com
Website: www.excellonresources.com