Excellon Resources Inc.
TSX : EXN

Excellon Resources Inc.

May 25, 2010 09:01 ET

Excellon Announces Continued Drilling Success at Platosa & Provides a Preliminary Miguel Auza Drilling Report

TORONTO, ONTARIO--(Marketwire - May 25, 2010) - Excellon Resources Inc. (TSX:EXN) is pleased to announce assay results for five recent holes at its Platosa Property. Hole LP773, drilled off the northwest portion of the 6A/6B Manto intersected 3.11 metres (m) of high-grade massive and semi-massive sulphides reporting 817 g/t (24 oz/T) Ag, 12.41% Pb, 5.01% Zn. This area has not been extensively drilled and 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 Manto. The other four holes (LP738, 741, 750 and 758) tested the NE-1/623 manto area on either side of a major NW-SE structure previously identified by Company geologists as a possible feeder zone for these mantos. Hole LP758 intersected 1,741 g/t (51 oz/T) Ag, 7.79% Pb, 3.93% Zn over 0.54 m within a wider sulphide zone running 302 g/t (9 oz/T) Ag, 1.84% Pb, 0.51% Zn over 4.39 m. 

These results provide continued evidence of the discovery potential for additional high-grade distal carbonate replacement deposit (CRD) resources in the mine area. Drilling is continuing to trace mineralization from the high-grade mantos already in production to a large-tonnage proximal deposit, comparable to those in related districts in the region. 

At the Company's Miguel Auza property eight holes have been completed in preliminary diamond drilling of the Madera Vein system. This drilling has confirmed these epithermal veins persist to depth and are showing the expected initial increase of sulphides and decrease of calcite. Significant amounts of pyrite and pyrrhotite have been found in portions of the veins and acanthite (Ag2S) has also been identified visually. Partial assays have been received for four holes, with a 1.75 m-wide vein running 321 g/t (9 oz/T) Ag, 0.72% Pb, 0.20% Zn, intersected high in the first hole drilled, 2010-219. Other assay results have been low. Vein textures, decreasing calcite to quartz ratios and low base metal values indicate that the veins are being intercepted well above the most favourable depth. Deeper drilling is required. A detailed geologic mapping program is underway to determine how these veins, which display considerable similarity to veins in nearby highly productive silver districts of the Fresnillo Silver Trend, fit into the district and regional framework. 

"The discovery of new high-grade massive sulphides in a poorly tested area close to mining infrastructure at Platosa is most encouraging and drilling is ongoing," said John Sullivan, Excellon's Vice-President of Exploration. "Drilling continues with four drills and we have begun a 3D IP (induced polarization) survey on a NW-SE trending corridor surrounding the mine. We expect the results will serve as a useful guide to spotting drill holes. At Miguel Auza we are pleased that the intercepts on several of the Madera Veins are showing the zoning we expect to see as we approach the potentially well-mineralized zones. We have confirmed that Miguel Auza hosts a large and complex mineralized system and expect the combination of more drilling and regional and detailed geologic mapping will lead to outlining additional target areas."

Assays for the five 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 40 additional holes drilled at Platosa since the exploration press release dated March 1st. Of these thirty-five did not intersect significant sulphides and five 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 SGS lab in Durango 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.

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. 

Dr. Megaw has a PhD in geology and more than 30 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 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 No.   Interval from (metres)   Interval to (metres)   Interval width (metres)   Silver (g/t)   Silver (oz/T)   Lead (%)   Zinc (%)
6A/6B Manto LP773   134.74   137.85   3.11   817   23.8   12.41   5.01
  Incl.   136.60   137.23   0.63   1,080   31.5   27.90   6.31
NE-1/623 Mantos LP738   221.58   223.00   1.42   3,480   101.5   25.55   1.41
  Incl.   222.05   223.00   0.95   5,101   148.8   36.10   1.69
  LP741   248.32   249.27   0.95   143   4.2   0.62   0.05
  and   250.06   251.21   1.15   215   6.3   1.00   3.63
  Incl.   250.06   250.26   0.20   840   24.5   1.84   12.30
  LP750   338.02   340.23   2.21   259   7.6   5.33   3.40
  LP758   333.27   337.66   4.39   302   8.8   1.84   0.51
  Incl.   333.27   333.87   0.60   635   18.5   5.29   0.15
  and Incl.   337.12   337.66   0.54   1,741   50.8   7.79   3.93

To view "Map 1: Location Map – Platosa and Miguel Auza Properties", please visit the following link:

http://media3.marketwire.com/docs/exnmap1.pdf

To view "Map 2: Platosa Mantos and Recent Drill Hole Locations", please visit the following link:

http://media3.marketwire.com/docs/exnmap22.pdf

To view "Map 3: Miguel Auza Mining Concessions and Exploration Areas", please visit the following link:

http://media3.marketwire.com/docs/exnmap3.pdf

To view "Map 4: Madera Vein System – Drilling Plan", please visit the following link:

http://media3.marketwire.com/docs/exnmap4.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$11 million exploration program where four 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 began there in early April.

On behalf of

EXCELLON RESOURCES INC.

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.

Contact Information