Excellon Resources Inc.

Excellon Resources Inc.

June 16, 2010 09:20 ET

Excellon Announces Additional High-Grade Drilling Results at Platosa & Completes the Phase 1 Drilling Program at Miguel Auza

TORONTO, ONTARIO--(Marketwire - June 16, 2010) - Excellon Resources Inc. (TSX:EXN) is pleased to announce assay results for three additional holes at its Platosa Property. Holes LP775, 780 and 781 continued drilling off the northwest portion of the 6A/6B Mantos and intersected 1.51, 1.75 and 3.04 metres (m) of high-grade massive and semi-massive sulphides respectively. Hole 781 reported 1,141 g/t (33 oz/T) Ag, 6.57% Pb, 14.97% Zn over 3.04 m. This area remains open to the northwest parallel to a major structure that is closely related to the high-grade massive sulphides being mined from the Guadalupe and 6A/6B Mantos and is accessible from existing mine infrastructure. 

These results provide continued evidence of the discovery potential for additional high-grade distal carbonate replacement deposit (CRD) resources in the immediate mine area and in an effort to speed up exploration a fifth drill has been mobilized to the site.

Elsewhere at Platosa drilling continues to confirm the presence of the favourable host fragmental limestone unit east and northeast of the known massive sulphide mantos thereby increasing the geological potential of finding additional mantos in this sparsely-drilled area. A recently completed 3D IP (induced polarization) survey may lead to the development of additional drilling targets in this area and in a prospective corridor extending for 2.5 km both northwest and southeast of the mining operations. The 3D IP data is presently being compiled after which sophisticated interpretation techniques will be employed to interpret the results. At la Zorra five kilometers west of the mine ongoing drilling of geological and geophysical targets continues to find geological indications that we are close to a large-tonnage proximal deposit, comparable to those in related districts Mexican CRD belt.

With respect to the large mining concession acquired in April and located between Platosa and the historic Ojuela Mine the Company plans an airborne geophysical survey to gather base data and define targets for ground follow-up. The survey will also be flown over the central portion of the Platosa Property. The total land position is 41,00 ha (103,784 acres).

At the Company's Miguel Auza property 12 holes totaling 4,888 m were completed in the Phase 1 diamond drilling of the Madera Vein system. This drilling has confirmed the presence of a large epithermal system with veins which persist to a depth of at least 440 m vertical as intersected in hole 2010-230, the last in the Phase 1 program. Significant amounts of pyrite and pyrrhotite have been found in portions of the veins. Some core remains to be logged and sampled and of those samples already sent to the laboratory approximately 75% of the assays have been received. The best intersection has been a 1.75 m-wide vein running 321 g/t (9 oz/T) Ag, 0.72% Pb, 0.20% Zn, intersected high in hole 2010-219 and reported in the press release dated May 25, 2010. Company geologists have begun a detailed examination of the several quartz-calcite veins intersected to determine how they fit in the epithermal model. It appears that we are still high in the system and deeper drilling may be required to determine whether there is a deep-seated Bonanza silver grade zone similar to those found in nearby highly productive silver districts of the Fresnillo Silver Trend. In parallel with this work a detailed geologic mapping program both at a local and regional scale is underway to determine how these veins fit into the district and regional framework and to generate additional detailed exploration programs on the underexplored 41,000 ha (101,310 acres) property. 

"The discovery of additional high-grade massive sulphides in a still-open area close to underground mine infrastructure at Platosa is most encouraging. We believe the new sulphides encountered may have already replaced the resources mined this year although this remains subject to a formal resource estimation," said John Sullivan, Excellon's Vice-President of Exploration. "We are now operating five drills at Platosa and despite encountering only low metal values in the initial drilling at Miguel Auza we believe that the Madera Veins and the entire property host considerable potential and will add value to Excellon." 

Assays for the three Platosa holes reported are shown in the table below and on the accompanying drill hole location map. All intervals are estimated true thicknesses. There have been nine additional holes drilled at Platosa since the exploration press release dated May 25th. Of these seven did not intersect significant sulphides and two were abandoned due to technical difficulties. Property location maps and a map showing details of the Madera Vein drilling are also included.

Excellon's drill core samples are prepared and assayed by SGS Minerals Services (SGS) in Durango, Mexico. The lab is accredited to ISO/IEC 17025. The Company has a comprehensive QAQC program, supervised by an independent Qualified Person, in place.

Qualified Persons

The Company's exploration programs are supervised by John Sullivan, Excellon's Vice-President of exploration, in consultation with Dr. Peter Megaw of IMDEX Inc.

Mr. John Sullivan, BSc., PGeo., has acted as the Qualified Person, as defined in National Instrument 43-101, for this disclosure. 

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 NI 43-101 reports on gold and base metal projects in Canada and internationally. In addition he has held senior positions with two large Canadian mining companies where he directed major exploration programs, managed field offices, and evaluated projects in Canada, Europe, Africa and Latin America. Mr. Sullivan is not independent of Excellon as he is an officer and holds common share purchase options.

Table: Platosa Sulphide Intersections and Assay Results
Location DDH
6A/6B Mantos LP775 129.25 130.76 1.51 888 25.9 8.17 1.85
  and 138.85 139.05 0.20 139 4.1 1.84 1.19
  LP780 127.90 129.65 1.75 777 22.7 14.72 8.35
  LP781 136.86 139.90 3.04 1,141 33.3 6.57 14.97

To view Map 1, Location Map – Platosa and Miguel Auza Properties, please visit the following link: http://media3.marketwire.com/docs/EXNfigno1.pdf.

To view Map 2, Platosa Mantos and Recent Drill Hole Locations, please visit the following link: http://media3.marketwire.com/docs/EXNfigno2.pdf.

To view Map 3, Miguel Auza Mining Concessions and Exploration Areas, please visit the following link: http://media3.marketwire.com/docs/EXNfigno3.pdf.

To view Map 4, Madera Vein System – Drilling Plan, please visit the following link: http://media3.marketwire.com/docs/EXNfigno4.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 Mineral Resource on its large Platosa Property, strategically located in the middle of the Mexican silver belt. In fiscal 2010, Excellon's focus is on expanding its operating capacity and increasing its Mineral Resources at Platosa through a CDN$12 million exploration program where five diamond drills are in operation. 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 and was the site of considerable historic mining for silver, (gold), lead and zinc. The exploration potential of Miguel Auza remains to be fully evaluated and is the object of an ongoing exploration program, which began in the fall of 2009. A one-drill initial target testing program, which began in early April 2010 was completed in June.


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, 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 January 15, 2010 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.

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