Excellon Resources Inc.

Excellon Resources Inc.

August 06, 2008 11:27 ET

Excellon Continues to Drill High Grade Sulphides at Platosa

6.41 m grading 1,192 g/t (35 oz/T) silver, 13.7% lead; 23.8% zinc

TORONTO, ONTARIO--(Marketwire - Aug. 6, 2008) - Excellon Resources Inc. (TSX:EXN) announces assay results for massive, semi-massive sulphide, and sulphide breccia intercepts from 28 recent holes in the Platosa Test-mine area. Twelve of these holes have cut significant new mineralization in the South Central Guadalupe Manto that is easily accessible from existing underground development. The best of these is Hole LP542, which cut 6.41 metres (m) of massive sulphides grading 1,192 g/t (35 oz/T) silver, 13.7% lead and 23.8% zinc. Hole LP565, 15 m away, cut 5.55 m of massive sulphides grading 856 g/t (25.0 oz/T) silver, 9.8% lead, 14.8% zinc.

An additional highlight is the NE Rodilla Manto, where eight holes have now intersected significant massive and semi-massive sulphides. The best of the eight intercepts reported is in LP533, which cut three closely-spaced sulphide zones grading 803 g/t (23.4 oz/T) silver, 7.2% lead, 5.2% zinc over 2.25 m; 161 g/t (4.7 oz/T) silver, 7.1% lead, 5.2% zinc over 1.45 m, and 729 g/t (21.3 oz/T) silver, 13.1% lead, 21.8% zinc over 1.00 m.

All of the above-noted intercepts represent sulphide mineralization not included within Excellon's February 3, 2008 NI 43-101 compliant Mineral Resource. See the table and map below for detailed assay results. Visual results for 15 of these holes were reported on June 5, 2008. All reported intersections are estimated true thicknesses.

Orientation ground gravity surveys were completed in July over the test-mine and a portion of the Saltillera area. These complement induced polarization (IP) surveys completed in June. Final results for both surveys are pending.

"We are pleased that our drilling continues to outline high-grade sulphide mineralization beyond the limits of our NI 43-101 Mineral Resource estimate, especially since some of this mineralization is readily accessible through existing mining infrastructure" said Peter A. Crossgrove, Excellon's chairman. "We are looking forward to fully incorporating the gravity and IP survey results into our ongoing drilling program to expand our high-grade manto resource, while aggressively seeking the large-tonnage, intrusion-related proximal style of mineralization that we believe remains to be discovered on the Company's large property."

An additional four holes drilled within the NI 43-101 Mineral Resource limits of the Northwest Guadalupe Manto are reported here (1000 Series). These holes were drilled in the course of controlling the water inflow that temporarily interrupted mining operations in late-May and early-June, but also serve to confirm continuity of mineralization in this area.

Thirty-three additional holes, most of which are shown but not numbered on the map, drilled in the test-mine area since the June 5, 2008 press release encountered trace sulphides within the favourable host limestone unit, but did not intersect significant mineralization.

Three drills remain active in the test-mine area and a fourth continues with the regional exploration program at Saltillera, approximately five kilometres to the west. Fifteen holes have been completed in the Saltillera area in calendar 2008. Promising geology and alteration continue to be intersected and a dedicated geological team has been created to manage all aspects of exploration in this area. The IP geophysical survey was completed at Saltillera in June and although a final report has not been received, preliminary results are now being incorporated into drill targeting.

Please note: To view the Sulphide Intersections and Assay Results table, visit the following link:


The Platosa exploration program is supervised by John R. Sullivan, Excellon's vice-president of exploration. Drill core samples are prepared by SGS Minerals Services (SGS) in Durango, Mexico, with silver and gold and in most cases base metals, assayed in Durango. 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. Most recently a senior geologist at a Toronto-based international geological and mining engineering consulting firm, he has 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.

Please note: To view Map 1: Location Map, visit the following link:


Please note: To view Map 2: Mantos and Recent Drill Hole Locations, visit the following link:


About Excellon

Excellon, a mineral resource company operating in Durango State, Mexico, is committed to building value through production, expansion and discovery. The Company is producing silver, lead and zinc from high-grade manto deposits on its Platosa Property, strategically located in the middle of the Mexican silver belt. In fiscal 2008 and 2009, Excellon's focus is on increasing its Mineral Resources through an aggressive $11-million exploration program, and expanding its operating capacity with the building of a mill at site. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system.

On behalf of


Peter A. Crossgrove, Chairman

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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