Excellon Resources Inc.

Excellon Resources Inc.

November 12, 2009 12:58 ET

Excellon Announces Additional High-Grade Assays and the Purchase of Golden Minerals' Interest in the Platosa Property

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2009) - Excellon Resources Inc. (TSX:EXN) is pleased to announce that it has agreed to purchase the remaining 49% joint venture interest in a large portion of the Platosa Property from Golden Minerals Company, for US$2.0 million in cash and a 1% Net Smelter Returns royalty subject to completion of definitive documentation and satisfaction of customary closing conditions. "By taking sole ownership in our flagship Platosa Property we can expand our exploration program for the benefit of Excellon shareholders and we are optimistic that we will continue to meet with exploration success in this area," stated Peter Crossgrove, Excellon's Chairman and Chief Executive Officer. Both parties expect to close the transaction within the next few days.

The Company is also pleased to release assay results for eight additional holes at Platosa. Five of the holes continued delineation of the 623 Manto discovered in July of this year. The results confirm the high-grade nature of this manto and while the widths of massive sulphides encountered are less than those of some of the previously disclosed holes, this is not unexpected as we probe the edges of the manto.

Hole EX09-LP657 intersected 7,030 g/t (205 oz/T) Ag, 30.5% Pb, 5.3% Zn over 1.20 metres (m), while hole LP662 cut 4,850 g/t (141 oz/T) Ag, 22.5% Pb, 7.4% Zn over 1.10 m. Assays for LP661, LP663 and LP666, also in the 623 Manto, are shown in the table below.

Drilling has now defined the 623 Manto as an elongate irregularly-shaped, north-south trending 170 by 20-25 m body that remains partially open. One drill continues to work in this area.

"The discovery of the high-grade 623 Manto so early after the resumption of our exploration drilling in 2009 and so close to existing underground infrastructure is very encouraging and we are optimistic that additional manto-style sulphide mineralization remains to be found within a reasonable distance of the Platosa Mine. Discovering additional high-grade mineralization and the high-tonnage proximal source of this mineralization remain our exploration priorities," said John Sullivan, Excellon's Vice-President Exploration.

Our second drill rig has completed its work in the NE-1 Extension area. Hole LP658, one of the last completed in this area returned 1,280 g/t (37 oz/T) Ag, 6.3% Pb, 3.0% Zn over 1.05 m from an area of sulphide-rich breccia. Two other holes intersected important results and these are shown in the table below. This rig is now focusing on the NW Guadalupe and North Rodilla areas. The former is located off the northwest corner of the Guadalupe Manto, the site of most of our mining at this time.

Assays for the eight holes reported here are shown in the table below and on the accompanying map. All intervals are estimated true thicknesses. In addition to these eight holes there have been 11 holes, which did not intersect significant sulphides drilled since the last exploration press release dated October 14, 2009.

In mid-October a third drill resumed the search for the high-tonnage proximal source of the manto deposits in the la Zorra area, some five kilometres west of the mine. The first hole in this portion of the program intersected hornfels followed by moderately altered intrusive rocks with minor pyrite. A second hole is underway.

The Platosa exploration program and initial exploration underway at Excellon's Miguel Auza property are supervised by John Sullivan, Excellon's Vice-President of exploration, in consultation with Dr. Peter Megaw of IMDEX Inc. Drill core samples are prepared and assayed by SGS Minerals Services (SGS) in Durango, Mexico. When required, sample pulps are sent to SGS in Canada and further assaying is carried out at its ISO/IEC 17025 accredited laboratory in Toronto, Ontario.

Qualified Persons

Mr. John Sullivan, BSc., PGeo., has acted as the Qualified Person, as defined in National Instrument 43-101, for this disclosure and has supervised the preparation of the technical information on which this press release is based.

Mr. Sullivan is an economic geologist with over 35 years of experience in the mineral industry. Prior to joining Excellon in 2007 he was a senior geologist at a Toronto-based international geological and mining engineering consulting firm where he evaluated properties and prepared National Instrument 43-101 reports on gold and base metal projects in Canada and internationally. Mr. Sullivan is not independent of Excellon as he is an officer and holds common share purchase options.

Table: Sulphide Intersections and Assay Results

LocationDDH No.Interval
width (metres)
623 MantoLP657173.15174.351.207,030205.030.505.28
NE-1 Manto ExtLP655269.46269.870.4137310.93.274.08

To view Map 1, please visit the following link: http://media3.marketwire.com/docs/platosamap1.pdf

To view Map 2, please visit the following link: http://media3.marketwire.com/docs/Mantosmap2.pdf

About Excellon

Excellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, is committed to building value through production, expansion and discovery. Excellon is producing silver, lead and zinc from the high-grade manto Indicated Mineral Resource on its large Platosa Property, strategically located in the middle of the Mexican silver belt. In calendar 2009, Excellon's focus is on expanding its operating capacity and increasing its Mineral Resources at Platosa through an aggressive exploration program. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system. The equally large Miguel Auza property hosts an Indicated and Inferred Mineral Resource, was the site of considerable historic mining for silver, (gold), lead and zinc and was exploited by Silver Eagle during 2008. The exploration potential of Miguel Auza remains to be evaluated and is the object of an exploration program, which began in September.


"Peter Crossgrove", Chairman & Chief Executive Officer

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, the proposed construction of a mill, business and financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can 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 similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any minerals produced (particularly silver), the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties, and particularly the April 14, 2008 NI 43-101-compliant technical report prepared by Scott Wilson Roscoe Postle Associates Inc. with respect to the Platosa Property. 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.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release, which has been prepared by management.

Contact Information