Excellon Resources Inc.
TSX : EXN

Excellon Resources Inc.

January 13, 2011 15:21 ET

Excellon Announces Final 2010 Assays From the High-Grade Pierna Manto and Provides an Exploration Update

727 g/t (21 oz/T) Ag, 8.38% Pb, 17.06% Zn Over 10.76 m in Hole EX10-LP884

TORONTO, ONTARIO--(Marketwire - Jan. 13, 2011) - Excellon Resources Inc. (TSX:EXN) is pleased to announce assays for the final two 2010 massive sulphide intersections in the Pierna Manto. Hole LP884 intersected 10.76 metres (m) of massive sulphides grading 727g/t (21 oz/T) Ag, 8.38% Pb, 17.06% Zn. Hole LP883 intersected 4.61 m grading 709 g/t (21 oz/T) Ag, 8.69% Pb, 15.12% Zn. The Pierna Manto was discovered in October 2010 and lies between the Rodilla and NE-1 Mantos. There are now eight holes with significant sulphide intersections in Pierna and it remains open to the northwest along a significant northwest-southeast trending structure that has not been fully defined. Additional drilling is planned for early 2011. 

In other exploration news: The Company received preliminary results from the Geotech ZTEM airborne geophysical survey in mid-December. ZTEM data require sophisticated interpretation, which is underway, and we expect to have interpreted results to begin ground-truthing in February. This relatively new type of survey has depth penetration beyond that of most airborne systems and is particularly effective at detecting structures at depth. Structural networks are fundamental controls on the style of Carbonate Replacement Deposit (CRD) being exploited at Platosa and lead to their proximal source, which is the ultimate object of the Company's exploration. 

Early 2011 exploration will focus on the following three areas:

  • The corridor between the 6A/6B Manto and the Rincon del Caido area 1.5 km to the northwest – Indications of a proximal environment where we might expect to find a large-tonnage deposit were found at Rincon del Caido in mid-2010 as were new massive sulphides leading northwest from 6A/6B. Holes LP773 intersected 3.11 m grading 817 g/t (24 oz/T) Ag, 12.41% Pb, 5.01% Zn while hole LP830 intersected 931 g/t (27 oz/T) Ag, 9.36% Pb, 6.54% Zn over 3.70 m. These intersections were amongst 23 reported from the 6A/6B Manto extension in six Company press releases between May 25th and November 4th, 2010. The area between Rincon del Caido and the 6A/6B Manto is considered to hold very high potential;
  • The Pierna Manto area – As noted above the surrounding area is largely open for immediate massive sulphide discovery, but perhaps more importantly, Pierna may also lead towards Rincon del Caido; and
  • 3D IP anomalies outlined and drilled in late 2010 were explained by pyrite-rich hornfels. While no values were found it is encouraging that significant amounts of sulphides were intersected. Additional drilling and further review of the 3D IP data, taking into account these drilling results, will be carried out early in the year.

Portions of these priority areas are shown on Map 3 below. Drilling resumed with one rig starting in the Rincon-6A/6B corridor January 10th when drill crews returned from the Holiday break. As drilling progresses we will evaluate adding a 2nd drill.

"We are very pleased by the growth of the new high-grade Pierna Manto; this almost immediately impacts future production planning and again demonstrates Platosa's high discovery potential," said John Sullivan, Excellon's Vice-President of Exploration. "We are also anxious to get to work with the interpreted results of our ZTEM survey, which we expect to be a great help in advancing our exploration, not only for the proximal source of the mantos, but over our entire property. We more than doubled our land holdings to almost 58,000 ha (143,300 acres) during 2010 and we expect the airborne results to help jump start exploration of the new ground since most is overburden covered and has seen little previous exploration." 

Assay details for holes LP883 and LP884 are shown in the Table and on Map 2 below. All intervals are estimated true thicknesses. In addition to these two holes there have been six other holes drilled at Platosa since the exploration press release dated November 17, 2010. While none intersected significant values they have added considerably to our knowledge base and will be valuable in planning future programs.

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.

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 Assay Results (intervals are estimated true thicknesses) 

Location DDH No. Interval
From (m)
Interval 
To (m)
Interval width (m) Silver (g/t) Silver (oz/T) Lead
(%)
Zinc
(%)
 Pierna Manto LP883 161.85 166.46 4.61 709 20.7 8.69 15.12
  LP884 167.50 178.26 10.76 727 21.2 8.38 17.06

To view map 1: Location Map – Platosa Property, please visit the following link: http://media3.marketwire.com/docs/EXN_map1.pdf.

To view map 2: Platosa Mantos and Recent Drill Hole Locations, please visit the following link: http://media3.marketwire.com/docs/EXN_map2.pdf.

To view map 3: Focus Areas for Early-2011 Exploration, please visit the following link: http://media3.marketwire.com/docs/EXN_map3.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. Excellon's focus is on expanding its operating capacity and increasing its Mineral Resources at Platosa where an exploration program focused on diamond drilling and advanced geophysical techniques is ongoing. 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 an initial exploration program, the results of which remain to be fully evaluated, was completed in the fall of 2010.

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.

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