Excellon Resources Inc.

Excellon Resources Inc.

October 06, 2009 13:55 ET

Excellon Announces Excellent Assays Expanding the Recently-Discovered 623 Manto

3,293 g/t Ag, 28.3% Pb, 11.2% Zn over 4.31 m in Hole EX09-LP650

TORONTO, ONTARIO--(Marketwire - Oct. 6, 2009) - Excellon Resources Inc. (TSX:EXN) is very pleased to announce new high-grade assay results for seven holes at its Platosa Property. Four of these holes were designed to locate massive sulphide extensions to the 623 Manto discovered in July of this year. Initial high-grade assays for the 623 Manto were reported in press releases dated August 6 and September 3, 2009, and the results for Holes LP641 and LP650, reported here, show the 623 Manto continues to cut mineralization comparable to the highest grade mineralization intersected on the property to date.

Hole EX09-LP650 intersected 3,293 g/t Ag, 28.3% Pb, 11.2% Zn over 4.31 metres (m). Hole LP641, located 30 m to the west intersected an also impressive 1,240 g/t Ag, 13.4% Pb, 30.0% Zn over 2.0 m. Assays for LP650, LP641 and two other holes in the 623 Manto are shown in the table below

Drilling to date has defined the 623 Manto as an irregularly-shaped NNE-SSW trending 80 m by 30 m body that remains open in several directions. An important aspect of the 623 Manto is that it lies only 90 m below the average depth of the active mine workings on the Guadalupe and Guadalupe South mantos. Historically, mantos at Platosa have been shown to be interconnected and continued drilling will focus on making the connection between the 623 Manto and the active mine area.

"We are very pleased that our Platosa drilling continues to outline high-grade sulphide mineralization in the 623 Manto. This new discovery close to our underground infrastructure validates our strategy of expanding potentially mineable manto sulphides while gearing up to resume drilling for the high-tonnage proximal source of the system." said John Sullivan, Excellon's Vice-President Exploration.

In other news, Scott Wilson Roscoe Postle Associates Inc., independent Toronto-based consulting geologists and engineers, have been engaged to prepare a new Mineral Resource estimate and NI 43-101 compliant technical report for Platosa. It is anticipated that the estimate, which will supersede that of early 2008, will be completed in December 2009.

The second drill rig has been active 50 to 100 m northeast of the 623 Manto, in the NE-1 extension area. Several holes have intersected sulphide-rich breccia with limited amounts of semi-massive to massive sulphides. Hole LP638 intersected 266 g/t Ag, 3.1% Pb, 2.2% Zn over 9.86 m including 537 g/t Ag, 6.1% Pb, 2.9% Zn over 2.59 m. These sulphide-rich breccias appear to lie along a major normal fault system with some intercepts (Hole LP638) lying at the elevation of LP650 while others lie approximately 100 m deeper (LP631, LP644). The fault breccias are themselves mineralized suggesting they may have acted as feeders, but their relationship to the 623 and other mantos is as yet unknown. Drilling continues in this area.

Assays for the seven holes reported here are shown in the table below and on the accompanying map. All intervals are estimated true thicknesses. In addition to these seven holes there have been 10 holes, which did not intersect significant sulphides.

The Platosa exploration program and initial exploration underway at Excellon's Miguel Auza property are supervised by John R. 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

Dr. Peter Megaw, PhD, CPG, and Mr. John Sullivan, BSc., PGeo., have acted as the Qualified Persons, as defined in National Instrument 43-101, for this disclosure and have supervised the preparation of the technical information on which this press release is based.

Dr. Megaw has a PhD in geology and more than 25 years of relevant experience focused on exploring silver and gold systems in Mexico. He is a Certified Professional Geologist (CPG 10227) by the American Institute of Professional Geologists and an Arizona Registered Geologist (ARG 21613). Dr. Megaw is not independent of Excellon as he is a shareholder.

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

Interval Interval Interval
from to width Silver Silver Lead Zinc
Location DDH No. (metres) (metres) (metres) (g/t) (oz/T) (%) (%)
623 Manto LP630 240.15 240.55 0.40 139 4.1 0.72 0.71
LP635 237.30 238.35 1.05 107 3.1 1.00 0.16
LP641 204.95 208.60 3.65 687 20.0 7.61 16.30
Incl. 206.60 208.60 2.00 1,240 36.2 13.40 29.56
LP650 221.70 226.01 4.31 3,293 96.0 28.3 11.2
NE-1 Manto
Ext. LP631 342.30 347.55 5.25 613 17.9 5.90 1.57
LP638 208.97 218.83 9.86 266 7.8 3.05 2.21
Incl. 208.97 210.47 1.50 590 17.2 6.26 8.58
and 213.66 216.25 2.59 537 15.7 6.08 2.94
LP644 338.35 344.05 5.70 304 8.9 2.18 1.73
Incl. 341.40 344.05 2.65 623 18.2 4.23 1.75

Map 1: Location Map - http://media3.marketwire.com/docs/exn_map1.jpg

Map 2: Mantos and Recent Drill Hole Locations - http://media3.marketwire.com/docs/exn_map2.jpg

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.

On behalf of


Peter Crossgrove, Chairman, President & 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.

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