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Excellon ProvidesProduction & Exploration Updates & Announces the Option ofAdditional High-Potential Exploration Property Near Platosa
TORONTO, ONTARIO, Nov 02, 2010 (MARKETWIRE via COMTEX News Network) --
ExcellonResources Inc. (TSX: EXN) reports that production at the Platosa Minecontinues at a reduced rate, however, has increased in the last month.On August 18, 2010, the mine suffered a sudden water inflow and fourteendays of production were lost (see press releases dated August 23,August 26 and September 1, 2010). Following reestablishment of thestockpile at Miguel Auza milling recommenced on September 11th.
TheCompany's objective is to return to previous production levels andgrades as early as possible in 2011. Planning for 2011 continues and theCompany will provide an additional update as this work is completed.
Actual and Forecasted Production for the third and fourth quarters of 2010 are shown in the table below.
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Period Tonnes Ag (g/t) Pb (%) Zn (%)
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Q3 July 1 - Sept. 30 (actual) 12,391 848 5.94 7.27
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Q4 Oct. 1 - Dec. 31 (forecast) 11,200 600 5.20 5.20
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Thewater inflows occur when mining encounters water-filled faults and theCompany has recently begun a more intensive grouting program. Anunderground diamond drill is now dedicated to drilling and grouting 25to 50 m long sub-horizontal holes in advance of certain production anddevelopment headings to seal off these faults. The Company is acquiringadditional new pumps and upgrading electrical infrastructure as itcontinues to enhance the Platosa water management program.
Excellonalso reports that it has entered into a binding Letter Agreement withSundance Minerals Ltd., a private Canadian company, to acquire aninterest in their 17,000 hectare Pluton Property located to the west ofand contiguous with portions of the Platosa Property. The property is anexcellent fit with the strategic objectives of the Company and is shownon the property location map below. Sundance, which has considerableexpertise in CRD exploration, will be the initial project operator incooperation with Excellon's exploration team. Excellon can earn a 60%interest in the property by making an upfront cash payment of $50,000and incurring $1,500,000 in exploration expenditures over three years.At its option, Excellon may earn an additional 15% interest for a totalof 75% by completing a pre-feasibility study within another three years.Following earn-in, a joint venture shall be formed and in the eventeither party dilutes to below a 15% interest it shall be entitled to a2.5% Net Smelter Return royalty (NSR). If the royalty holder isSundance, Excellon shall have the right to acquire 1.5% NSR for$5,000,000 payable through the issuance of 5 million common shares ofExcellon with the balance, if any, in cash. If Excellon is the royaltyholder, Sundance shall have the right to acquire 1.5% NSR for $5,000,000payable through the issuance of 5 million Sundance common shares (ifsuch shares are then listed in a recognized stock exchange) with thebalance, if any, in cash.
The Pluton Property covers the westernportion of a large regional magnetic feature that is believed to reflectunderlying intrusives favourable to the development of CRD systems. ThePlatosa Mine is located on the eastern side of the same regionalfeature and the past producing Ojuela Mine (6 million tonnes ofhigh-grade Ag, Au, Pb, Zn production from a series of CRD chimneys andmantos) sits on the south-central side. The Pluton Property coversfavourable geology with sulphide showings and other signs of proximityto a mineralizing source. Sundance has carried out only limited work onthe property but has developed soil geochemical anomalies of significantsize.
The Company is also pleased to report that Geotech Ltd., aCanadian geophysical contracting company and world leader in airbornegeophysical surveying techniques has completed a ZTEM survey at Platosa.The survey covered a large portion of the original Platosa block,almost all of the new concession acquired in April and a portion of thePluton Property. The capabilities of this method are well suited todetecting anomalies, which might represent either skarn-type,intrusive-related sulphide bodies such as a large-tonnage proximal CRDdeposit or high-grade manto deposits similar to those the Company ispresently exploiting. Company geologists are optimistic that the resultsof this survey will help further focus the search for such deposits byoutlining direct targets, which can be advanced quickly to the drillingstage. The Company expects to receive preliminary survey results beforethe end of November. The Company and its geophysical consultant continueto work with the data gathered during the pilot 3D induced polarization(3D IP) survey completed in June. The survey grid measures roughly fivekilometres from NW-SE and one kilometre from SW-NE and is centred onthe known mantos. Several untested areas underlain by chargeabilityanomalies similar in nature to those associated with portions of theknown massive sulphide mantos have been identified and a series of drillholes is planned for these areas. The Company presently has one drilloperating at Platosa.
"We are pleased with the completion of theZTEM survey, which we hope will reveal new targets directly related toeither a large-tonnage proximal CRD deposit we believe is hosted on theproperty or additional high-grade mantos. In addition we believe theoption agreement recently signed with Sundance further increases thepossibility of significant new discoveries by the Company on its landpackage, which now totals 59,000 ha (146,000 acres)," said JohnSullivan, Excellon's Vice-President of Exploration.
Qualified Persons
TheCompany's exploration programs are supervised by John Sullivan,Excellon's Vice-President of exploration, in consultation with Dr. PeterMegaw of IMDEX Inc.
Dr. Peter Megaw, PhD, CPG, and Mr. JohnSullivan, BSc., PGeo., have acted as the Qualified Persons, as definedin National Instrument 43-101, for the exploration portion of thisdisclosure.
Dr. Megaw has a PhD in geology and more than 30 yearsof relevant experience focused on exploring silver and gold systems inMexico. He is a Certified Professional Geologist (CPG 10227) by theAmerican Institute of Professional Geologists and an Arizona RegisteredGeologist (ARG 21613). Dr. Megaw is not independent of Excellon as he isa shareholder.
Mr. Sullivan is an economic geologist with over35 years of experience in the mineral industry. Prior to joiningExcellon in 2007 he was a senior geologist at a Toronto-basedinternational geological and mining engineering consulting firm where heevaluated properties and prepared NI 43-101 reports on gold and basemetal projects in Canada and internationally. In addition he has heldsenior positions with two large Canadian mining companies where hedirected major exploration programs, managed field offices, andevaluated projects in Canada, Europe, Africa and Latin America. Mr.Sullivan is not independent of Excellon as he is an officer and holdscommon share purchase options.
To view Location Map - Platosa Property, please visit the following link:
https://media3.marketwire.com/docs/excellon_resources_map_nov2.pdf
About Excellon
Excellon,a mineral resource company operating in Durango and Zacatecas States,Mexico, is committed to building value through production, expansion anddiscovery. Excellon is producing silver, lead and zinc from thehigh-grade manto Mineral Resource on its large Platosa Property,strategically located in the middle of the Mexican silver belt.Excellon's focus is on expanding its operating capacity and increasingits Mineral Resources at Platosa where an exploration program, focusedon diamond drilling and advanced geophysical techniques is ongoing. ThePlatosa Property, not fully explored, has several geological indicatorsof a large mineralized system. The equally large Miguel Auza propertyhosts an Indicated and Inferred Mineral Resource and was the site ofconsiderable historic mining for silver, (gold), lead and zinc. Theexploration potential of Miguel Auza remains to be fully evaluated andan initial exploration program, the results of which remain to be fullyevaluated, has recently been completed.
On behalf of
EXCELLON RESOURCES INC.
Peter Crossgrove, Chairman & Chief Executive Officer
Thispress release contains forward-looking statements within the meaning ofSection 27A of the Securities Act and Section 27E of the Exchange Act.Such statements include, without limitation, statements regarding thefuture results of operations, performance and achievements of theCompany, including potential property acquisitions, the timing, content,cost and results of proposed work programs, the discovery anddelineation of mineral deposits/resources/reserves, geologicalinterpretations, proposed production rates, potential mineral recoveryprocesses and rates, business and financing plans, business trends andfuture operating revenues. Although the Company believes that suchstatements are reasonable, it can give no assurance that suchexpectations will prove to be correct. Forward-looking statements aretypically 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 cautionsinvestors that any forward-looking statements by the Company are notguarantees of future results or performance, and that actual results maydiffer materially from those in forward looking statements as a resultof various factors, including, but not limited to, variations in thenature, quality and quantity of any mineral deposits that may belocated, significant downward variations in the market price of anyminerals produced (particularly silver), the Company's inability toobtain any necessary permits, consents or authorizations required forits activities, to produce minerals from its properties successfully orprofitably, to continue its projected growth, to raise the necessarycapital or to be fully able to implement its business strategies. All ofthe Company's public disclosure filings may be accessed viawww.sedar.com and readers are urged to review these materials, includingthe technical reports filed with respect to the Company's mineralproperties, and particularly the January 15, 2010 NI 43-101-complianttechnical report prepared by Scott Wilson Roscoe Postle Associates Inc.with respect to the Platosa Property. This press release is not, and isnot to be construed in any way as, an offer to buy or sell securities inthe United States.
The Toronto Stock Exchange has not reviewedand does not accept responsibility for the adequacy or accuracy of thecontent of this Press Release, which has been prepared by management.
Contacts: Excellon Resources Inc. Morgan Knowles Director, InvestorRelations (416) 364-1130 mknowles@excellonresources.comwww.excellonresources.com
SOURCE: Excellon Resources Inc.
mailto:mknowles@excellonresources.com https://www.excellonresources.com
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