EXMIN Resources Inc.

EXMIN Resources Inc.

January 09, 2008 14:20 ET

EXMIN Exploration and Production: Success in 2007, Outlook for 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 9, 2008) - EXMIN Resources Inc. (EXMIN) (TSX VENTURE:EXM) is pleased to provide the following overview of exploration and production progress in 2007, along with an outlook for 2008.

EXMIN's primary objective is to advance its low-cost projects with efficient work programs to explore for mineral resources and elevate the confidence level in known mineralization present. As the confidence in the potential resource increases, EXMIN seeks to maximize opportunities to advance its projects through strategic alliance, joint venture, option or sale. EXMIN continues to aggressively explore its projects to the limit of its available capital resources.

Diversified Project Portfolio

EXMIN has acquired a diversified project portfolio that includes 30% of a 3,000 ton per day gold and silver mine, several advanced projects with drill-ready targets, including three with potential to define metal resources in the near term, and numerous early-stage, district-scale land packages in historic mineral producing regions of northern Mexico. Notably, the company was able to accomplish this at a relatively low cost through staking of large prospective areas and negotiating option agreements with low front end payments where necessary to acquire specific targets. At December 31, 2007, EXMIN's total project portfolio, included over twenty individual projects, covering nearly 600,000 hectares (1.48 million acres).

Since its inception in 2004, EXMIN has focused on funding continuing field work at the Company's projects to generate, develop and define drill targets. EXMIN has identified and advanced numerous deposits over the last four years, and, in 2007, this work culminated in the definition of several high confidence drill targets on deposits that company geologists feel have the potential to become qualified resources under NI 43-101 standards. These targets now qualify for, and require, significant drilling expenditures to prove and expand the potential resources. Some of EXMIN's plans for exploration in 2008 are outlined below.

Projects With Near-Term Potential To Define Resources

Reyna de Oro

Reyna de Oro was EXMIN's first project, where it has drilled 2,200 metres with excellent results (see EXMIN News Release of May 18 and August 30, 2005). A small drill program, planned for 2008, is necessary to be able to define a gold resource at the Reyna de Oro mine. Also, several other high quality exploration targets have yet to be fully explored or drilled, including Balojaque, where sampling has yielded up to 105.5 g/t gold over 0.5 metres (see EXMIN News Release of September 6, 2006).


Drilling and sampling by EXMIN (see EXMIN News Release of August 16, 2007) and by a previous operator in the vicinity of the Horcon mine indicate that a potential resource could be developed on the Diamantillo vein as well as several other veins in the area, where sampling has yielded average values of 1.5 to 17.9 g/t gold, 20-134 g/t silver, 0.1 to 0.3 % copper, 0.8 to 6.0 % lead, and 0.8 to 6.2 % zinc over average widths of 0.41 to 1.87 metres. A drill program to define a NI 43-101 qualified resource at the property is planned for 2008. Several other target areas in the large land package at Horcon are less advanced but have similar geologic characteristics.

Melchor Ocampo

In 2007, EXMIN acquired two drill targets at Melchor Ocampo, located 20 kilometres from the large Penasquito mine currently under development by Goldcorp. At the first target, Las Coloradas, past drill data from within and near concessions recently acquired by EXMIN indicate the potential for a large tonnage silver-lead-zinc resource (see EXMIN News Release of November 26, 2007). EXMIN geologists believe that drilling of about 1,500 metres of core will qualify a resource to NI 43-101 standards, and this program is also planned for 2008. The second target, near El Trebol, was acquired by staking as a joint venture with AmMex Gold Mining (30% EXMIN and 70% AmMex, see EXMIN News Release of November 29, 2007). A magnetic anomaly from government data and geochemical data from a past operator provide an immediate drill target, and approximately 2,000 metres of RC drilling will be funded by AmMex in early 2008.

Projects Advanced To The Drill-Ready Stage In 2007


At the Oribo project, Manhattan Minerals previously delineated a 3 kilometre long gold in soil anomaly along the contact zone of an intrusive rock with a limestone. Several areas of high grade gold in rock samples occur within this area, and a preliminary drill program cut several zones with interesting gold values. EXMIN has confirmed the gold values in rock samples and has partly completed a geologic evaluation and plans to conduct a 2,000 metre drill program to test several targets.

La Guitarra

At La Guitarra, a structural zone with high grade gold mineralization hosted by stockwork quartz veining has been defined within a 52 hectare claim block. The prospect has been explored by several companies in the past, but the main structure that contains the high grade gold values has only been partially explored and remains open along strike and at depth (see EXMIN News Release of November 7, 2006). EXMIN has planned a 1,000 metre preliminary drill program to test the structure.


Acquired in early 2007, the Pino project consists of a large vein with silver-lead-zinc values in a prolific silver belt containing the Guanecevi, Tahuehueto and Topia districts being explored by other juniors (see EXMIN News Release of July 24, 2007) Exploration work completed by EXMIN has defined a drill target on the vein along strike and below an area that was mined in the past, and a 1500 metre drill program is planned to test the target.

Projects To Be Advanced By Surface Exploration In 2008


The Batopilas land package surrounds the Batopilas silver camp and covers parts of at least four separate mineralized areas with several exploration targets (see EXMIN News Release of October 6, 2006). First pass reconnaissance, mapping and surface sampling has been advanced at La Verde and Satevo, with similar work planned at Corralitos and Cerro Colorado in 2008.


A 100 hectare concession acquired in 2007 during a lottery with Penoles and Chesapeake Gold. A structure several kilometres in length returned gold values of as much as 6 metres of 5.8 g/t gold (see EXMIN News Release of May 24, 2007). EXMIN plans to complete surface exploration in 2008.

San Patricio

San Patricio is part of a large land package in a developing precious metal district. A large mineralized area, measuring 100 by 150 metres, surrounds a small mine, all on EXMIN ground, that yielded high grades in preliminary sampling. One sample assayed 9.4 g/t gold, 3,636 g/t silver, 9.2 % copper, and more than 20% lead over a sample width of 3.5 metres (see EXMIN News Release of December 11, 2007). EXMIN plans to complete the surface exploration and define drill targets in 2008.


A large land package south of Moris, contains multiple mineralized areas and at least ten discrete targets for follow up work planned for 2008.

Financing Capital Requirements

Generation of capital used to advance and maintain EXMIN's project portfolio generally requires the sale and issuance of new common shares of the Company. Share placements are dilutive to existing shareholders and EXMIN management has secured intimate financings with its joint venture partners, to avoid broker commissions and warrants, as a low-cost means to finance its capital requirements in 2007. About 70% of EXMIN's capital required to purchase and rehabilitate its 30% of the Moris mine was provided through such placements.

Moris Mine

EXMIN's objectives for purchasing the Moris Mine were numerous and include:

1. Reduce long term capital funding requirements through realized positive cash flow from the mine production,

2. Enhance exploration joint venture relationship with Hochschild Mining, Plc. (Hochschild),

3. Gain leverage to higher gold and silver prices through production,

4. Capitalize on low cost entry to fast track production, utilizing Hochschild's production experience and financial strength.

The Moris Mine was purchased in late December, 2006, and in just eight months mining and crushing reached full scale operation of approximately 3,000 tons per day, and within ten months the recovery circuit produced the first bar of gold-silver dore. Total production for 2007 was 5,680 oz gold and 13,000 oz silver. With the mine in full production, streamlining of the production process along with a cost reduction program has been initiated. Production for 2008 is estimated at 25,000 oz gold and 60,000 oz silver, and EXMIN is now poised to take advantage of the current high metals prices.

Existing Joint Venture Model

The joint venture model has worked well for EXMIN. All three previously existing exploration joint venture agreements were renewed, by Hochschild, at Moris, Industrias Penoles, at Maguarichic and Yale Resources Ltd., at Urique. These partners have spent more than US$ 3 million combined in advancing EXMIN's projects, and to date have drilled about 12,000 metres while earning interests in projects in which EXMIN initially acquired a 100% interest, mainly by staking. EXMIN continues to seek additional joint venture opportunities, and in 2007 signed agreements with Canarc Resource Corp., at Batopilas (see EXMIN News Release of September 20, 2007), and AmMex Gold Mining, at Melchor Ocampo (see EXMIN News Release of November 29, 2007).


Drilling has advanced significantly since Feb. 2007, with preliminary drilling initiated at three separate target areas. To date, a total of approximately 3,500 metres of core drilling has been completed. Assay results indicate that a large gold mineralized structural zone is present at the Tecolote target (see EXMIN News Release of July 11, 2007); other results are pending.


Penoles began a Phase II drill program in late 2007 to test several vein targets in an area of multiple old mines, as well as part of an area of strong alteration that may host hidden bonanza mineralization. The drill program is still in progress, and it is anticipated that drilling will resume shortly after having shut down for the holiday break. Assay results are pending.


Exploration work has advanced in three target areas, Cerro Colorado, San Pedro, and the Urique district. A first pass drill program for these target areas is planned to commence in the first quarter, 2008.

Investor Relations And Market Development

EXMIN has applied the greatest amount of its available capital possible to conduct the field work that advances its projects. To this end, the Company has not devoted significant resources to outside promotional activities. Instead, EXMIN enhanced its Investor Relations department in 2007 to properly disseminate the full EXMIN picture to the markets. As the Company grows, it plans to finance a comprehensive market development program to advance EXMIN's market position based on its credible and impressive short history and asset portfolio. During late 2007, the Company engaged San Diego Torrey Hills Capital to advance the current pace of market development.

Quality Assurance

All samples taken by EXMIN generally consisted of one to three kg of material, and were prepared and analyzed by ALS Chemex and BSI Inspectorate in their facilities in Mexico and Vancouver or Reno, respectively. Gold analyses were performed by 30 gram fire assay with an AA finish; samples with more than 10 g/t gold are reanalyzed by gravimetric methods. Silver and the base metals were analyzed as part of a multi-element ICP package using an aqua regia digestion; samples with more than 100 g/t silver or more than 1% base metals were analyzed by AA.

Assay data for samples not taken by EXMIN were obtained as parts of data packages at various projects and are believed to be reliable.

Dr. Craig Gibson, PhD., Certified Professional Geologist, and 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.


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 as well as in other highly mineralized areas of 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