Excalibur Resources Ltd.

Excalibur Resources Ltd.

May 09, 2011 09:30 ET

Excalibur Update on Catanava JV Project in Mexico

TORONTO, ONTARIO--(Marketwire - May 9, 2011) - Excalibur Resources Ltd. (CNSX:XBR)(WKN:A0MMDH) (the "Company") is pleased to report on the progress towards production in its 49% subsidiary, Minera Catanava S.A. de C.V. ("Catanava"), following a recent site visit. The Catanava Joint Venture ("JV") is 51% held by Minera Apolo S.A. de C.V. which is providing the property, mining asset and the management of the project, and 49% held by Excalibur which is providing the financing. The purpose of the JV is to build a gold operation with initial production from a 250 tonne per day ("tpd") plant on the 143 hectare Catanava property, located in the Municipality of Pinos, in the State of Zacetecas, Mexico.

Since the last update, which announced that the 250 tpd ball mill and crushers had been delivered, most of the basic infrastructure has been completed and quotations for the remaining supplies (cement, rebar) and equipment (concentrator, conveyor, headframe, lab) have been received. Recent work includes:

  • 3 large ore bins with capacity of 100 and 150 tons have been fabricated and delivered
  • 7 buildings have been erected (security, fuse and explosive magazines, bucking room, assay laboratory and sample storage)
  • heavy metal doors have been installed over the various shafts
  • a submersible pump has been installed and the water tank has been tested
  • lighting and power lines to all mine areas

Environmental Impact Statement (EIS)

The many components to the application have been compiled and will be submitted next week to the SEMARNAT, which has 60 days to respond and process.

Explosive Permit

The explosive and fuse magazines were built under the direction of the local military, and include buildings of plastic roofs and large lightening arrestors. The Mayor of Pinos has signed his approval, next is the signature of the Governor of Zacetecas and then it is sent to the Department of Defense for final approval.

Mine Plan

The mine plan is based on an estimated 1 million tonnes of vein ore outlined in 5 mine areas over approximately 1 km of strike. The various veins range from high grade veins of less than 1m to lower grade veins up to 10m wide. Each mine area, Camino, Tanous, San Ernesto, San Gil and Infantita, will be accessed by a shaft servicing one to three levels of old workings. Some mechanization may be possible with a ramp in two of the areas. Initial testing of the ball mill will use material from one of the many dumps on site (3+gpt Au). After receipt of the permit, test production would commence, followed by full commercial production expected in the Fall of 2011.

See pictures of our progress at: http://www.excaliburresources.ca/s/CatanavaMexico.asp

The Catanava project is in the northwest section of the Pinos Gold District, which was discovered by the Spanish in 1546 and mined until the Revolution in 1810, by Cornish miners from 1870 to 1911, and most recently by an individual miner from 1935 to 1941. Recent exploration work was undertaken through a Penoles/Bethlehem Steel JV from 1975 to 1983, All-North Resources from 1993 to 1994, Hecla Mining Company from 1994 to 1997, and most recently by Romarco Minerals from 2006 to 2009.

Excalibur Resources Ltd. is a junior exploration mining company focused on the discovery, development and mining of economically viable precious and base metal mineral resources.

On behalf of the Board of Directors:

Tim Gallagher, Chairman

The CNSX has neither approved nor disapproved of the contents of this press release.

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