newsExcellon Resources reviews Platosa mine exploration
2005-01-20 17:03 ET - News Release
Mr. A. Douglas MacKenzie reports
EXCELLON ANNOUNCES DISCOVERY OF NEW ZONE
Excellon Resources Inc. has provided a progress report on drilling, ramping and exploration results from its 100-per-cent-owned Platosa mine area within its 14,692-hectare (36,304-acre) Platosa/Saltierra property in Durango, Mexico.
Excellon's aggressive surface drilling program (see news in Stockwatch dated Nov. 10, 2004), has resulted in the discovery of a new zone of massive and brecciated sulphide mineralization approximately 85 metres northwest of the known resource. Results from eight contiguous holes in an area roughly 25 metres wide by 65 metres long (table 1 below) indicate that a new coherent sulphide manto has been found with grades comparable with the mineral resources targeted for upcoming production. The volume and grade of the new manto are being calculated by Roscoe Postle Associates Inc., independent geological and mining consultants (RPA). This calculation will include an evaluation of whether and how to incorporate this emerging mineral resource into the mine plan contained in the RPA report of Dec. 10, 2003 (report available at www.sedar.com).
The new manto has been named the N-1 to differentiate it from the previously discovered 4, 5 and 6 mantos which lie along an apparently separate structural feeder lying 85 to 100 metres south of N-1. It remains open in several directions and its structural controls will not be clear until its extent is better known. Further drilling of this new manto will probably largely be done from underground once access to this area is achieved.
Table 1
SELECTED DRILL RESULTS FROM N-1 MANTO
Previously announced
Hole From To Rec. Ag Ag Pb Zn
No. m m % ppm oz/t % %
LP81 108.95 110.30 95 373 12 0.9 0.2
LP84 103.45 108.45 92 361 12 5.8 3.9
New assays
Hole From To Rec. Ag Ag Pb Zn
No. m m % ppm oz/t % %
LP104 105.20 105.64 69 805 26 27.8 6.8
LP105* 94.31 99.48 99 2082 67 22.0 17.1
LP106 101.15 102.15 88 445 14 1.3 0.4
LP107 101.55 102.70 95 683 22 6.6 3.7
LP108 93.55 95.85 85 521 17 9.8 9.8
LP109 101.45 102.10 95 277 9 1.0 0.2
N-1 manto average** 940 30 11.0 8.1
Previously calculated
mineral resource grades +
Ag Ag Pb Zn
ppm oz/t % %
4A manto
massive sulphide ++ 766 22 5.7 7.8
5A manto
massive sulphide ++ 3912 114 22.3 6.5
6A manto
massive sulphide ++ 1664 49 10.4 10.4
*This includes 1.29 m grading 5,430 grams per tonne silver (175 ounces per ton), 34.5 per cent lead and 11.5 per cent zinc. Pb overlimit assay is pending.
**This is a thickness-weighted average of these eight holes that will be refined through RPA's more detailed modelling.
+ Readers are cautioned that mineral resources that are not classified as mineral reserves do not have demonstrated economic viability.
++ Weighted averages from indicated resource estimate calculated by RPA (September, 2002).
The N-1 also contains strongly anomalous gold in three drill holes with four intercepts exceeding 0.5 gram per tonne. The best intercept, one metre of 1.79 g/t Au, lies in the middle of the five-metre-thick LP-105 massive sulphide zone. These values are comparable with those previously reported from the 5 manto (see news in Stockwatch dated Aug. 15, 2002), and indicate that consistent gold credits may characterize portions of the Platosa system. Consistent elevated gold values have long been anticipated at Platosa based on a comparison to the Ojuela mine, which lies 20 kilometres to the south of Platosa. Ojuela produced six million tonnes of ores averaging 3.5 g/t Au, with 475 g/t Ag (15 ounces per ton), 15.0 per cent Pb and greater than 10.0 per cent Zn, and is the mine that launched Industrias Penoles SA, the world's premier silver producer. Gold values increased with depth at Ojuela, suggesting that the gold at Platosa may be an indicator of proximity to feeder structures.
Twelve additional holes were drilled in the campaign beyond those that define the N-1 Manto. Five of these (LP-95, 99, 110, 111 and 112) were drilled in the process of locating the N-1. Three (LP-99, 111 and 112) cut trace mineralization at the N-1 horizon, with 112 cutting 15 centimetres of massive sulphides. The remaining seven holes (LP-96, 97, 98, 100, 101, 102 and 103) were condemnation and geotechnical holes drilled along the route of the Platosa ramp. None of these cut mineralization.
Drilling stopped after LP 112 for the holiday season and has now resumed. The current drilling consists of geotechnical holes to aid in the finalization of the mine design. Once these holes are completed, exploration drilling will recommence.
Assaying and check assaying are being performed by ALS Chemex Laboratories of Vancouver and BSI Inspectorate of Reno, Nev. Check assays for these holes are pending, but results are historically consistent between the two laboratories. Drilling has been done by Major Drilling of Mexico with excellent recoveries. The drill hole maps below are also available in colour on the company website at: www.excellonresources.com, or by request.
As of Wednesday, Jan. 19, the four-metre-by-4.5-metre Platosa ramp, which commenced on Sept. 1, 2004, had advanced 432 metres from the portal. Average advance was slowed by the holiday season and locally poor ground conditions, which required a redesign of the ramp. The ramp is now expected to reach ore at approximately 715 metres down ramp, which should now occur in April, 2005. Underground drilling is expected to begin within the next few weeks when the ramp reaches approximately 450 metres of advance.
Other recent exploration work includes the completion of the phase II biogeochemical survey, an orientation induced polarization and gravity survey over the known resource, and a 25-line-kilometre NSAMT (natural source audio magneto tellurics) geophysical survey focused on covered areas flanking the Platosa mine area and more remote target areas. These surveys have revealed a number of geophysical and biogeochemical anomalies that coincide with the projections of surface structures with associated mineralization and alteration. A number of targets, lying from one-to-five-kilometre distances from the Platosa mine, are being developed for drilling in the near future.
The continuing exploration program is designed and supervised by A.D. MacKenzie, PEng, and Dr. Peter Megaw, respectively, Excellon's president, and its consulting geologist and exploration manager of its Mexican subsidiary.
Qualified person and quality assurance and control
Dr. Megaw, PhD, CPG, has acted as the qualified person as defined in National Instrument 43-101, for this disclosure and supervised the preparation of the technical information on which this release is based. Dr. Megaw has a PhD in geology and more than 20 years of relevant experience focused on silver and gold mineralization, and exploration and drilling in Mexico. He is a certified professional geologist (CPG 10227) by the American Institute of Professional Geologists and an Arizona registered geologist (ARG 21613). Dr. Megaw is not independent of Excellon as he is a shareholder and his company receives a finder's fee with respect to the Platosa/Saltierra property.