Excellon Resources Inc.

Excellon Resources Inc.

March 03, 2008 08:00 ET

Excellon More Than Doubles Platosa Mineral Resource to 417,000 Tonnes of High-Grade

TORONTO, ONTARIO--(Marketwire - March 3, 2008) - Excellon Resources Inc. (TSX:EXN) has increased its indicated mineral resource to 417,000 tonnes at its 100%-owned Platosa test-mine, located near Bermejillo, in northeastern Durango State, Mexico.

The updated Mineral Resource estimate indicates a 126% increase in the Indicated Mineral Resource category to a total of 417,000 tonnes grading 1,060 g/t silver (31 oz/T), 9.31% lead, and 9.79% zinc, up from 184,500 tonnes grading 1,546 g/t silver, 10.86% lead, and 10.50% zinc (at May 9, 2006). The Inferred Mineral Resource has also increased nine-fold from 8,200 to 73,000 tonnes at a slightly higher grade than that of 2006. Tonnages and grades are summarized below. The results meet Company expectations and Platosa remains one of the highest grade producing silver, lead, and zinc deposits in Mexico.

Since the cut-off date for the new estimate, the drill holes announced in press release No. 5 - 2008 (February 21, 2008) have shown that the Guadalupe and Rodilla mantos are connected. In addition, new massive sulphide mineralization with an estimated true thickness of 4.7 metres has been encountered in the NE-1 area approximately 100 metres east of Rodilla. Assay results from these holes are pending and drilling is ongoing to trace the extent of both these mantos.

"Our new 43-101-compliant Mineral Resource estimate confirms that our aggressive drilling program in the immediate test-mine area, as well as the underground mine development, has allowed us to add to our resource on a continual basis, even as we have shipped over 78,000 tonnes of ore since our 2006 resource estimate. The Indicated and Inferred Mineral Resource disclosed today is sufficient to sustain the Platosa test-mine operation for eight years on the present basis of selling ore directly to Penoles or four years should the Company decide to build an on-site 350 tonne per day flotation mill. A final mill construction decision is expected in the near future," said Richard W. Brissenden, Excellon's CEO and president. "Looking to the future, we are also delighted with the discovery of new massive sulphides at NE-1 and the linking of the Guadalupe and Rodilla mantos. Neither of these recent results is incorporated into the updated resource estimate and we look forward to adding to our resource base in these and other areas as we continue to drill."

Platosa Project - Summary of February 3, 2008 Mineral Resource Estimate

Category Tonnes (t) Silver (g/t) Lead (%) Zinc (%)
Indicated 417,000 1,060 9.31 9.79
Inferred 73,000 758 9.19 9.69

Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA), independent geological and mining consultants, prepared the estimate as at February 3, 2008 in accordance with the guidelines set forth in National Instrument 43-101 ("NI 43-101").

The Guadalupe and Guadalupe South Mantos account for 51% of the Indicated Resource and a large portion of the increase. In addition, the newly and not-completely delineated Rodilla Manto contributed 75,200 tonnes or 18% of the total Indicated Mineral Resource.

Significant Estimation Parameters

The estimate is based on data for drill holes completed through to December 10, 2007, and production data to February 3, 2008. The resources were estimated through block modelling in Gemcom Software. Volumes were constrained using 3D wireframes interpreted at a cut off grade of U.S. $40/tonne Net Smelter Return ("NSR") value. Assumptions used for the NSR calculation include metal prices of U.S. $13.00/oz silver, $0.90/lb lead, and $1.10/lb zinc. Silver grades were capped at 10,000 g/t prior to compositing. Block silver, lead and zinc grades were interpolated within the wireframes using the Inverse Distance Squared method. The Platosa drill hole database includes 444 vertical and inclined diamond drill holes totalling 78,065 metres of core. Most holes within the Mineral Resource area are aligned along NE-SW oriented sections spaced 15 metres apart for an average drill hole spacing is approximately 15 to 20 metres. A total of 612 silver, lead and zinc assays were used in the Mineral Resource estimate. Block tonnage was estimated from volume using a bulk density formula derived from the interpolated lead and zinc grades and a regression formula derived from 85 bulk density measurements made on mineralized drill core. The estimate is of Mineral Resources only and, because these do not constitute Mineral Reserves, they do not have any demonstrated economic viability.

A detailed description of the estimation and other pertinent geotechnical information related to the Platosa project will be included in an NI 43-101-compliant technical report being prepared for the Company by Scott Wilson RPA and to be filed on SEDAR within the mandated 45 days of this press release.

Qualified Persons

Dr. Peter Megaw, PhD, CPG, and Mr. John Sullivan, BSc., PGeo., have acted as Qualified Persons, as defined in NI 43-101, for this disclosure and have supervised the preparation of the technical information, which formed the basis for the updated Mineral Resource disclosed in this press release.

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 NI 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.

Mr. D. W. Rennie, P.Eng., a Consulting Geological Engineer, and Mr. David Ross, P.Geo., a Senior Geologist, both employed by Scott Wilson RPA, acted as the Qualified Persons, as defined in NI 43-101, for the Scott Wilson RPA Mineral Resource estimate. Mr. Rennie, Mr. Ross, and Scott Wilson RPA are independent of Excellon.

Quality Assurance and Quality Control

The Platosa exploration program is supervised by John R. Sullivan, Excellon's vice-president of exploration. Drill core samples are prepared by SGS Laboratories in Durango, Mexico, with silver and gold assayed in Durango. Sample pulps are sent to SGS Canada Inc. and further assaying is carried out at its ISO/IEC 17025 accredited laboratory in Toronto, Ontario. Excellon has a comprehensive quality assurance and quality control program in place that is supervised by an independent QP.

About Excellon

Excellon, a self-sustaining 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, Excellon's focus is on increasing its Mineral Resources through an aggressive $11-million exploration program, expanding its operation, and studying the feasibility of building a mill at site. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system, the tracking of which Excellon believes will lead to the discovery of a world class deposit.

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 timing, content, cost and results, the discovery and delineation of mineral deposits/resources/reserves at the Company's Platosa property, 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 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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