Exmin expands Horcon
EXMIN Significantly Expands Polymetallic Mineralization and Acquires Additional Ground in the Horcon Mine Area, Guanajuato Region, Mexico
Mon Mar 3, 12:43 PM
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2008) - EXMIN Resources Inc. (EXMIN) (TSX VENTURE: EXM.V) is pleased to provide an update of exploration activities at the Horcon project in the Guanajuato region of central Mexico. To date, EXMIN has focused exploration predominantly on a relatively small area of the land package surrounding the Horcon mine, which was the subject of a core drilling program in 2007 (see news releases of March 5, May 22 and August 16, 2007).
The Horcon mine was developed on the Diamantillo vein and several low angle veins in the footwall. Compilation of underground samples and drill intercepts of the Diamantillo vein in the area of the Horcon mine show that it is mineralized over at least 600 metres along strike and over a vertical extent of 350 metres, suggesting that it may be possible to develop significant gold, silver, zinc lead and copper resources with further exploration (see table below). Also, exploration to the southeast along the trend of the Diamantillo vein has extended the known vein structures to about 2.5 kilometres of strike length, where several small mines exploited breccia bodies hosted by sedimentary rocks; samples from small irregular workings have yielded as much as 7.48 grams per metric ton (g/t) gold, 152 g/t silver, 9.41 % lead, 1.85 % zinc, and 0.29 % copper over an exposed width of 1.8 metres (see table of results below). The breccia bodies extend to the edges of the mine workings and appear to be larger than the sampled width.
EXMIN has entered into an option agreement with a private Mexican citizen to acquire about 390 hectares in several concessions that lie within the boundaries of the project land package and cover part of the southeastern extension of veins mentioned above. This acquisition gives EXMIN nearly 100% control over the district.
Craig Gibson, Executive Vice President of Exploration of EXMIN, stated, "We have been working to expand the known mineralization in the Horcon mine area. Based on the data from our exploration program and information from past exploration by other groups, we feel that the chances of delineating significant resources at the Horcon mine are good. This represents a small portion of the total project area, and there are many additional targets."
The Acquisition
EXMIN has entered into an option agreement to acquire 390 hectares in 7 concessions by making staged payments over the five year term of the option agreement for 100% of the rights to the concessions, subject to a net smelter return royalty (NSR), under the following terms:
1. Payment of US $25,000 (paid);
2. Payments totalling US $215,000 over three years;
3. Subsequent payments totalling US $1.26 million in the 4th and 5th years.
The properties are subject to a 1.5% net smelter return royalty capped at US$ 400,000; 1% of the NSR can be purchased for US$ 250,000 at any time, leaving a permanent 0.5% NSR. EXMIN will assume the normal requirements to keep the concessions in good standing with the Mexican Mining Secretariat. EXMIN can terminate the contract unilaterally at any time, with no further obligations to the titleholder. The only work commitment required is a 500 metre drill program to be completed on the concessions during the period of option.