NewsExcellon More Than Doubles Platosa Mineral Resource to 417,000 Tonnes of High-Grade
08:03 EST Monday, March 03, 2008
TORONTO, ONTARIO--(Marketwire - March 3, 2008) - Excellon ResourcesInc. (TSX:EXN) has increased its indicated mineral resource to 417,000tonnes at its 100%-owned Platosa test-mine, located near Bermejillo, innortheastern Durango State, Mexico.
The updated Mineral Resource estimate indicates a 126% increase inthe Indicated Mineral Resource category to a total of 417,000 tonnesgrading 1,060 g/t silver (31 oz/T), 9.31% lead, and 9.79% zinc, up from184,500 tonnes grading 1,546 g/t silver, 10.86% lead, and 10.50% zinc(at May 9, 2006). The Inferred Mineral Resource has also increasednine-fold from 8,200 to 73,000 tonnes at a slightly higher grade thanthat of 2006. Tonnages and grades are summarized below. The resultsmeet Company expectations and Platosa remains one of the highest gradeproducing silver, lead, and zinc deposits in Mexico.
Since the cut-off date for the new estimate, the drill holesannounced in press release No. 5 - 2008 (February 21, 2008) have shownthat the Guadalupe and Rodilla mantos are connected. In addition, newmassive sulphide mineralization with an estimated true thickness of 4.7metres has been encountered in the NE-1 area approximately 100 metreseast of Rodilla. Assay results from these holes are pending anddrilling is ongoing to trace the extent of both these mantos.
"Our new 43-101-compliant Mineral Resource estimate confirms thatour aggressive drilling program in the immediate test-mine area, aswell as the underground mine development, has allowed us to add to ourresource on a continual basis, even as we have shipped over 78,000tonnes of ore since our 2006 resource estimate. The Indicated andInferred Mineral Resource disclosed today is sufficient to sustain thePlatosa test-mine operation for eight years on the present basis ofselling ore directly to Penoles or four years should the Company decideto build an on-site 350 tonne per day flotation mill. A final millconstruction decision is expected in the near future," said Richard W.Brissenden, Excellon's CEO and president. "Looking to the future, weare also delighted with the discovery of new massive sulphides at NE-1and the linking of the Guadalupe and Rodilla mantos. Neither of theserecent results is incorporated into the updated resource estimate andwe look forward to adding to our resource base in these and other areasas we continue to drill."
Platosa Project - Summary of February 3, 2008 Mineral Resource Estimate
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Category Tonnes (t) Silver (g/t) Lead (%) Zinc (%)
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Indicated 417,000 1,060 9.31 9.79
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Inferred 73,000 758 9.19 9.69
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Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA),independent geological and mining consultants, prepared the estimate asat February 3, 2008 in accordance with the guidelines set forth inNational Instrument 43-101 ("NI 43-101").
The Guadalupe and Guadalupe South Mantos account for 51% of theIndicated Resource and a large portion of the increase. In addition,the newly and not-completely delineated Rodilla Manto contributed75,200 tonnes or 18% of the total Indicated Mineral Resource.
Significant Estimation Parameters
The estimate is based on data for drill holes completed through toDecember 10, 2007, and production data to February 3, 2008. Theresources were estimated through block modelling in Gemcom Software.Volumes were constrained using 3D wireframes interpreted at a cut offgrade of U.S. $40/tonne Net Smelter Return ("NSR") value. Assumptionsused for the NSR calculation include metal prices of U.S. $13.00/ozsilver, $0.90/lb lead, and $1.10/lb zinc. Silver grades were capped at10,000 g/t prior to compositing. Block silver, lead and zinc gradeswere interpolated within the wireframes using the Inverse DistanceSquared method. The Platosa drill hole database includes 444 verticaland inclined diamond drill holes totalling 78,065 metres of core. Mostholes within the Mineral Resource area are aligned along NE-SW orientedsections spaced 15 metres apart for an average drill hole spacing isapproximately 15 to 20 metres. A total of 612 silver, lead and zincassays were used in the Mineral Resource estimate. Block tonnage wasestimated from volume using a bulk density formula derived from theinterpolated lead and zinc grades and a regression formula derived from85 bulk density measurements made on mineralized drill core. Theestimate is of Mineral Resources only and, because these do notconstitute Mineral Reserves, they do not have any demonstrated economicviability.
A detailed description of the estimation and other pertinentgeotechnical information related to the Platosa project will beincluded in an NI 43-101-compliant technical report being prepared forthe Company by Scott Wilson RPA and to be filed on SEDAR within themandated 45 days of this press release.
Qualified Persons
Dr. Peter Megaw, PhD, CPG, and Mr. John Sullivan, BSc., PGeo., haveacted as Qualified Persons, as defined in NI 43-101, for thisdisclosure and have supervised the preparation of the technicalinformation, which formed the basis for the updated Mineral Resourcedisclosed in this press release.
Dr. Megaw has a PhD in geology and more than 25 years of relevantexperience focused on exploring silver and gold systems in Mexico. Heis a Certified Professional Geologist (CPG 10227) by the AmericanInstitute of Professional Geologists and an Arizona RegisteredGeologist (ARG 21613). Dr. Megaw is not independent of Excellon as heis a shareholder.
Mr. Sullivan is an economic geologist with over 35 years ofexperience in the mineral industry. Most recently a senior geologist ata Toronto-based international geological and mining engineeringconsulting firm, he has evaluated properties and prepared NI 43-101reports on gold and base metal projects in Canada and internationally.Mr. Sullivan is not independent of Excellon as he is an officer andholds common share purchase options.
Mr. D. W. Rennie, P.Eng., a Consulting Geological Engineer, and Mr.David Ross, P.Geo., a Senior Geologist, both employed by Scott WilsonRPA, acted as the Qualified Persons, as defined in NI 43-101, for theScott Wilson RPA Mineral Resource estimate. Mr. Rennie, Mr. Ross, andScott Wilson RPA are independent of Excellon.
Quality Assurance and Quality Control
The Platosa exploration program is supervised by John R. Sullivan,Excellon's vice-president of exploration. Drill core samples areprepared by SGS Laboratories in Durango, Mexico, with silver and goldassayed in Durango. Sample pulps are sent to SGS Canada Inc. andfurther assaying is carried out at its ISO/IEC 17025 accreditedlaboratory in Toronto, Ontario. Excellon has a comprehensive qualityassurance and quality control program in place that is supervised by anindependent QP.
About Excellon
Excellon, a self-sustaining mineral resource company operating inDurango State, Mexico, is committed to building value throughproduction, expansion and discovery. The Company is producing silver,lead and zinc from high grade manto deposits on its Platosa Property,strategically located in the middle of the Mexican silver belt. Infiscal 2008, Excellon's focus is on increasing its Mineral Resourcesthrough an aggressive $11-million exploration program, expanding itsoperation, and studying the feasibility of building a mill at site. ThePlatosa Property, not fully explored, has several geological indicatorsof a large mineralized system, the tracking of which Excellon believeswill lead to the discovery of a world class deposit.
On behalf of
EXCELLON RESOURCES INC.
Richard W. Brissenden, President and Chief Executive Officer
This press release contains forward-looking statements within themeaning of Section 27A of the Securities Act and Section 27E of theExchange Act. Such statements include, without limitation, statementsregarding future anticipated exploration program timing, content, costand results, the discovery and delineation of mineraldeposits/resources/reserves at the Company's Platosa property, businessand financing plans, business trends and future operating revenues.Although the Company believes that such statements are reasonable, itcan 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 similarexpressions, or are those, which, by their nature, refer to futureevents. The Company cautions investors that any forward-lookingstatements by the Company are not guarantees of future results orperformance, and that actual results may differ materially from thosein forward-looking statements as a result of various factors,including, but not limited to, variations in the nature, quality andquantity of any mineral deposits that may be located, the Company'sinability to obtain any necessary permits, consents or authorizationsrequired for its activities, to produce minerals from its propertiessuccessfully or profitably, to continue its projected growth, to raisethe necessary capital or to be fully able to implement its businessstrategies. All of the Company's public disclosure filings may beaccessed via www.sedar.com and readers are urged to review thesematerials, including the technical reports filed with respect to theCompany's mineral properties.
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:
Excellon Resources Inc.
Annemarie Brissenden
Manager, Corporate Communications
(416) 364-1130
(416) 364-6745 (FAX)
Email: abrissenden@excellonresources.com
Website: www.excellonresources.com
The TSX has not reviewed and does not accept responsibility for theadequacy or accuracy of the content of this Press Release, which hasbeen prepared by management.