EXMIN Resources Inc.

EXMIN Resources Inc.

January 18, 2007 12:32 ET

EXMIN And Hochschild Focus on Moris District: Resource Expansion at the Moris Mine and Exploration of Three Large Scale Targets in 2007

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2007) - EXMIN Resources Inc. (EXMIN) (TSX VENTURE:EXM) is pleased to provide shareholders with an overview of the potential to confirm and increase historical resources at its 30% owned Moris Mine and the ongoing district-wide exploration program in the Moris district. A summary of Moris Mine due diligence data was provided by EXMIN in a press release dated January 17, 2007. EXMIN believes that several factors may lead to a significant increase in the historical resources at the Moris Mine in addition to the operational changes that were discussed in the January 17 release.

- The Santa Maria vein system has not been systematically explored down-dip and along strike from the Moris Mine, and nearby areas of alteration and veining within the Moris Mine land package have not been adequately explored.

- The land package included in the Moris Mine purchase includes two claims, across the valley from the mine, that cover the strike extension of the Tecolote vein system, one of the principal large scale drill targets of the separate, earn-in exploration joint venture.

- Exploration will continue in 2007 on several additional, large scale, high priority targets on EXMIN/Hochschild ground in the Moris district and outside of the Moris Mine land package, including the drilling of the Tecolote vein system.

Karl J. Boltz, President and CEO of EXMIN, stated, "Concurrent with the Moris Mine due diligence program, the EXMIN/Hochschild exploration joint venture has continued exploring the rest of the Moris district. We've focused on the possible extensions of the Santa Maria vein system, as well as other large scale, high priority targets, such as the nearby Tecolote vein system, the Balleza bulk tonnage target and the Mesa de Las Tunas/El Pilar target area. Our ongoing district-wide exploration program has identified additional areas of mineralization on our exploration joint venture ground and will kick into high gear now that we've acquired the mine."

Two joint venture agreements between EXMIN and Hochschild covering the Moris district are in effect. The first agreement is an earn-in exploration joint venture whereby Hochschild can earn up to 70% interest in EXMIN's 100% mining concessions related to an area of approximately 23,158(J1) hectares that forms the Moris exploration project and was announced on March 22, 2006 (Please see News Releases of March 22 and July 18, 2006, for details on the earn-in exploration joint venture agreement).

In the second joint venture agreement, EXMIN and Hochschild agreed to purchase 100% (EXMIN 30%, Hochschild 70%) of the Moris Mine and facilities from the former owner, Minera Moris, for a total purchase price of US$6 million plus 15% VAT (see News Release of July 19, 2006).

Moris Mine - Further Exploration of the Santa Maria Vein System

The Santa Maria vein system consists of massive quartz vein material with stockworks in the adjacent wall rock and varies from a few metres to more than 30 metres in width. The vein strikes approximately north-south and is exposed as erosional remnants on three hills exposed over a 1.1 kilometre strike length at the edge of the Moris valley. The vein dips moderately towards the valley, providing an ideal geometry for bulk-tonnage mining with a low stripping ratio.

The Santa Maria vein system has never been systematically explored at depth below the historical resource blocks defined by Manhattan. As part of the due diligence program, and to assess the additional resource potential of the Santa Maria vein system, eleven holes were drilled to explore the vein system from 80 metres to as much as 240 metres under the resource blocks.

In EXMIN's opinion, in general, the holes intersected the vein with textures indicating that vein filling occurred at relatively high structural levels permissible for ore deposition. A fluid inclusion study and analysis of clay minerals also support this interpretation. Two holes returned values that indicate that the Creston ore shoot may continue to depth and could be mined underground once the base of the open pit is reached. Although it is early to draw definite conclusions, because the holes are widely spaced and were drilled a large distance below the historical resource blocks, the presence of a well-formed vein, locally with interesting gold values, is a positive indication for possible additional mineralization at depth(J2).

Assay results from deep drilling of the Santa Maria vein, Moris Mine
Intercept Au Ag Depth Below
Hole (m) (g/t) (g/t) Resource(i) (m)
HMC-8 2.95 4.30 4.7 120
includes 1.5 7.15 7.2 120
HMC-9 4.75 0.41 1.9 90
HMC-10 19.00 0.32 1.0 140
includes 6.00 0.48 2.4 140
HMC-11 0.85 3.12 2.6 120
HMC-12 1.75 0.52 0.6 240
HML-3 0.40 0.44 1.0 150
HMC-15 1.30 0.11 0.3 150
HMC-16 2.55 0.15 1.2 200
HMEM-1 0.25 1.96 0.9 80

Intercepts are the length of the mineralized interval along the core
and are not true widths.

(i)Depth of vein intercepts below the base of the historical resource

To EXMIN's knowledge, the Santa Maria vein system has never been systematically explored along strike from the immediate area of the previously defined historical resource. Preliminary geological work indicates that the structure hosting the Santa Maria vein extends for several kilometres north and south of the Moris mine. An exploration program to test the possible strike extensions of the deposit is also planned for 2007.

Note: EXMIN considers data from the operation of Manhattan Minerals from 1996-2000 to be 'historical' in nature because they were generated before current industry regulations were adopted under NI 43-101 standards. EXMIN has engaged a Qualified Person to complete a report under NI 43-101 guidelines in order to recalculate the 'historical resources' following CIM classifications, and until complete, the 'historical information' should not be relied upon.

District-wide Exploration Upside - Potential Resource Expansion With New Discoveries

The land package acquired with the purchase of the Moris Mine assets provides additional potential for the joint venture. Two of the eleven concessions in the land package contain the strike extensions to the Tecolote vein system, which is one of the large, stand-alone exploration targets subject to the EXMIN/Hochschild earn-in exploration joint venture. (See News Releases of March 22 and July 18, 2006).

The Tecolote vein system is larger in scale and similar in mineralization style to the Santa Maria vein and has been traced for several kilometres along strike. Unlike the Santa Maria vein system, however, the Tecolote vein system has not been significantly eroded and has an exposed vertical extension of over 700 metres, including a silicified cap, indicating that it has the potential to host several times the amount of mineralized rock as the Moris Mine. Surface sampling on the Tecolote system yielded assays of as much as 20 grams per tonne (g/t) gold at high structural levels within the La Fe concession and up to 20 g/t gold at the in deeper exposures some 500 vertical metres below. (See News Release of February 22, 2006). The base of the exposed Tecolote vein system is only a few kilometres from the Moris Mine and any resources discovered there could potentially be processed using the mine facilities. Drilling on the Tecolote vein system is planned to commence in February, 2007.

In addition to the land package acquired in the Moris Mine acquisition and the Tecolote vein system, the EXMIN-Hochschild earn-in exploration joint venture controls two other areas in the district with potential for the discovery of large stand-alone precious metal deposits. These areas, at El Pilar and La Cienega, are road accessible and host outcropping mineralization. (See News Release of July 18, 2006). EXMIN has defined drill targets in these areas, and exploration will continue during 2007.

Quality Control - Quality Assurance

Individual samples were prepared and analyzed by ALS Chemex at their labs in Mexico and Vancouver. Some samples from the Tecolote vein system were prepared and analyzed by BIS Inspectorate at their labs in Mexico and Reno. Core was cut into two approximately equal portions, with one half sent to the geochemical lab for assay and the second half conserved on site. In certain cases, the remaining half was removed for metallurgical studies. Gold analyses were performed by fire assay with an AA finish, and silver analyses were part of a multi-element package.

Hochschild completes its exploration programs and resource calculations under the Australian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC Code) and has emplaced quality control procedures consisting of insertion of standards and blanks (coarse and fine) in the sample stream as well as submission of duplicate samples and repeated assays of both fine (pulps) and coarse material.

Dr. Craig Gibson, PhD., Executive Vice President of Exploration, is the authorized professional geologist for EXMIN Resources Inc. and the direct manager of all technical programs and information on the part of EXMIN.

Neither EXMIN's joint venture partner, Minera Hochschild Mexico, nor Hochschild Mining plc, or any of its subsidiaries, accept any responsibility for the use of project data or the adequacy or accuracy of this release.

About Hochschild

Minera Hochschild Mexico (MHM) is a subsidiary of Hochschild Mining plc (Hochschild) (HOC.L for Reuters, HOC LN for Bloomberg), a publicly held, Latin American precious metals mining company, listed on the London Stock Exchange in November 2006. Hochschild is a primary silver producer and also produces a significant quantity of gold (approximately 10.5 million ounces of silver and approximately 233 thousand ounces of gold in 2005). The company has over forty years experience in the exploration, evaluation and extraction of precious metal epithermal vein deposits. Currently, it has three underground, epithermal vein mines supported by fully developed infrastructure, at the Arcata, Ares and Selene operations in Southern Peru. Hochschild also has two advanced stage development projects, one in Argentina and one in Peru, as well as two early stage development projects both of which are in Mexico. In addition to its development projects, Hochschild has over twenty long-term prospects throughout Latin America. Hochschild's company headquarters are in Lima, Peru.


EXMIN Resources Inc. (EXMIN) is currently focused on the exploration and development of precious metal properties of exceptional merit in the Sierra Madre gold belt of Northwestern Mexico.

Note: EXMIN Resources Inc. (EXMIN) has taken all reasonable care in producing and publishing information contained in this news release. Material in this news release may still contain technical inaccuracies, omissions or typographical errors, for which EXMIN assumes no responsibility. This news release may include certain "forward-looking statements" including but not limited to comments regarding predictions and projections. All statements, other than statements of historical fact, included in this news release, including, without limitation, statements regarding potential mineralization, exploration results, and future plans and objectives of EXMIN, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in documents filed from time to time with the regulatory authorities.

The TSX Venture Exchange has not reviewed this release and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • EXMIN Resources Inc.
    Karl J. Boltz
    President & CEO
    EXMIN Resources Inc.
    Investor Relations
    Email: info@exmin.com
    Website: www.exmin.com