Excellon Resources Inc.

Excellon Resources Inc.

August 22, 2007 08:02 ET

Excellon Announces High-Grade Assay Results, Mobilizes Fourth Drill and Schedules Commencement of Mineral Resource Update for October

TORONTO, ONTARIO--(Marketwire - Aug. 22, 2007) - Excellon Resources Inc. (TSX VENTURE:EXN) announces high-grade assay results from the ongoing exploration program in the immediate vicinity of its test-mine operation at its Platosa Property in northeastern Durango State, Mexico. Three holes (LP07-347, 350 and 355) cut between 2.00 and 6.75 metres of massive sulphides grading from 2,200 to 2,740 g/t (64.0-79.9 oz/T) silver; 11.2 to 36.8% lead and 1.1 to 9.1% zinc. These results correspond to massive and breccia sulphides discovered during a recent surface drilling and underground exploration program aimed at connecting and expanding the Guadalupe and Guadalupe South mantos (see table and maps below). The Company further announces the mobilization of a fourth drill rig, and that Scott Wilson Roscoe Postle Associates is scheduled to begin its update of the Mineral Resource Estimate in October.

Seventeen holes have now been drilled between the Guadalupe and Guadalupe South mantos to follow up on the 4.55 metres of massive sulphide mineralization cut in Hole LP07-347 and by underground exploration and development between, and 25 metres above the elevation of, these principal mantos (see press release No. 04 - 2007). This intercept represents a previously unrecognized mineralized horizon, which has now been cut five times in various places. The three high-grade intercepts mentioned above come from this zone as have those in two more recent holes (LP07-391 and 392), which cut 2.10 and 5.50 metres of massive sulphides at this same elevation. Assays for these holes are pending.

Five holes in the program intersected previously unknown breccia sulphide mineralization extending 20 to 40 metres from the southeastern portion of the Guadalupe Manto at the same elevation as the manto. Holes LP07-383, 384, 385, 387 and 388 intersected 3.00, 1.00, 4.90, 2.20 and 1.60 metres, respectively, of sulphide breccia. Assays for these intercepts are also pending. Seven holes have failed to intersect significant mineralization. All intersection width references are to core width, which in all cases is the estimated true thickness.

The results from this program so far indicate that, while continuous mineralization has not yet been traced between the two Guadalupe mantos, there are significant but incompletely defined high-grade massive sulphides in a semi-continuous horizon 20 to 25 metres above the principal manto horizon. The reported values are significantly higher in silver than those from the principal underlying mineralization, suggesting this mineralization may represent a separate mineralization stage. The Company's exploration and mining team is evaluating to what extent these drilling and underground exploration successes might add to the Platosa Mineral Resource, but further exploration of this area will be pursued by direct underground headings, thereby freeing the drill rig to trace the open end of the Guadalupe Manto to the northwest (see below).

Interval Interval
Azim- from to Interval Silver Silver Lead Zinc
DDH No. uth Dip (metres) (metres) (metres) (g/t) (oz/T) (%) (%)
EX07LP347 0 90 119.7 124.25 4.55 2,291 66.8 16.7 9.1
EX07LP350 0 90 121.05 123.05 2.00 2,740 79.9 36.8 1.1
EX07LP355 0 90 113.26 120.01 6.75 2,200 64.2 11.2 4.7

"We are pleased with the successes achieved recently by our exploration in the Platosa test-mine area and expect to add this high-grade mineralization to our test-mining operation," said Richard W. Brissenden, Excellon's CEO and president. "However, the main Guadalupe Manto is completely open to the northwest and the potential to find larger-scale mineralization in that direction is very high, so we are shifting our drilling focus there. The manto thickens and broadens that way and we have strong undrilled geochemical and geophysical targets that lie along its projection. Our exploration successes district-wide have increased our confidence in our exploration model and now that we have surface access to the northwest we are pleased to add a second drill to accelerate the program in that area."

In addition to the drill holes noted above, 44 holes (10,350.45 metres) have been drilled in the general test-mine area to test Mobile Metal Ion and Mercury Soil Gas geochemical anomalies, to follow up on isolated intersections of interest near the test-mine and to fill in gaps left by previous programs near the Guadalupe South Manto. While no assays have been received for these holes, the Company does not anticipate that there will be any economically significant results.

Almost all of the Platosa test-mine area drilling has been on Excellon's 100% owned Platosa Property. A small amount has been conducted on an area held in joint venture with Apex Silver Mines Limited.

Fourth Drill to Mobilize

A second drill is being mobilized to accelerate testing for extensions of the north and northwestern parts of the high-grade Guadalupe Manto, following the acquisition of surface rights in this area (see press release No. 07 - 2007), bringing the total number of drills working at Platosa to four. The program will also test the 1,200-metre long continuation of the same closely parallel biogeochemical and ground geophysical anomalies that coincide with the Guadalupe Manto and led to its discovery in late 2005. These anomalies are reinforced further by nearby pronounced airborne electromagnetic (AEM) anomalies extending northwest from the northwest corner of the Guadalupe Manto. These anomalies are similar to ones associated with the Guadalupe Manto and were delineated by an AEM survey completed during the winter of 2007.

Mineral Resource Estimate

Scott Wilson Roscoe Postle Associates Inc., a Toronto-based independent mining and geological consulting group, has informed Excellon that its update of the Company's National Instrument 43-101-compliant Mineral Resource Estimate is scheduled to begin in October. The updated report should be complete sometime in early 2008.

Additions to Geological Team at Platosa

In addition to continuing with an aggressive and focussed drilling program on the large Platosa property, Excellon has begun to build its own exploration team to complement the expertise provided on an ongoing basis by senior consultants from Compaia Minera Cascabel S.A. de C.V. The Company is selectively evaluating additional exploration and development opportunities in Mexico and elsewhere, concentrating on projects that can add value to the Company in a meaningful manner in the short- to medium-term.

Addition to Land Holdings at Platosa

Excellon also announces that it has added to its mineral tenure holdings at Platosa by staking an approximate 8,000-hectare concession contiguous with the southwestern boundary of the property. This concession provides protection and additional exploration terrain in the area of Hole EX07ST-50 (see press release No.10 - 2007) and brings the Company's total mineral concession holdings at Platosa to over 25,000 hectares.

Note 1: To view the Map 1: Location Map, please visit the following link


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


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.

About Excellon

Excellon Resources Inc., an emerging silver producer, is test-mining and exploring its Platosa/Saltillera Properties in Durango State, Mexico. Excellon has 146,998,657 shares outstanding, and trades on the TSX Venture Exchange under the symbol EXN.

On behalf of


Richard W. Brissenden, President and 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 future anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, 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, 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.

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 TSX Venture 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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