EXMIN Resources Inc.
TSX VENTURE : EXM

EXMIN Resources Inc.

December 06, 2006 09:01 ET

EXMIN Acquires District Scale Project in the Guanajuato Region of Central, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 6, 2006) - EXMIN Resources Inc. (EXMIN) (TSX VENTURE:EXM) is pleased to announce that it has entered into an agreement to acquire approximately 10,500 hectares in the northern extension of the Guanjajuato district of central Mexico. Guanajuato is a world class silver and gold district with production that has been estimated at 1 to 1.5 billion ounces of silver and around 5 million ounces of gold. Mining and exploration in the district has recently been reactivated in the last few years by Canadian junior mining companies such as Great Panther Resources and Gammon Lake Resources. The land package acquired by EXMIN covers a major portion of a series of vein systems that measure 12 kilometers along strike by 3 kilometers and contains several past producing mines. The concessions lie in the state of Jalisco near the boundary with the state of Guanajuato.

Dr. Craig Gibson, Executive Vice President of Exploration for EXMIN, stated, "There are not many opportunities to pick up a property of this caliber under a reasonable deal such as this one. Guanajuato is a world class mining district that has been producing for 450 years. This property is at the northern end of the district in the same package of host rocks and is possibly the extension of the vein systems that have been mined at Guanajuato."

EXPLORATION TARGET

The main focus of exploration is a system of epithermal veins that generally strike northwest and appear to be the northern extension of the veins exposed at Guanajuato. Approximately 25 linear kilometers of veins have been delineated within the optioned land package. The veins are dominantly hosted by a granitic pluton and a sequence of Mesozoic volcanosedimentary rocks that form the basement in the region. Five major vein systems transect the district and have been exploited in several places by old mines and prospects. Small volcanogenic massive sulfide deposits have also been discovered in the Mesozoic rocks in the region but are not presently a prime target for exploration.

PREVIOUS EXPLORATION AND MINING ACTIVITY

The region covered by the project was originally mined by the Spanish during the Colonial period. Jesuits mined at the Horcon mine for 200 years until the mid 1700's and constructed several kilometers of workings and a shaft at least 200 meters deep. The workings were described as unorganized, as the veins were mined as they were discovered and no attempt to quantify resources had been done. An evaluation of the property done in 1932 for an American company reported that high grade mineralization occurred in multiple faces and pillars. It is unknown if the property was purchased or whether any work was done at that time.

The Consejo de Recursos Minerales (now the Servicio Geologico Mexicano, or SGM) has studied the district and produced several reports, mainly in the 1960's and the 1980's. These reports are mainly descriptive or academic in nature.

A major international mining company explored part of the district in 2004 and 2005. The owner of the concessions has provided information from this exploration program to EXMIN. Detailed geologic maps were completed and more than 600 surface samples were taken. Twelve diamond drill holes totaling 3570 meters were also completed. This exploration program tested the veins at depth from easily accessible areas, but generally did not test the areas of past mining and the immediate extensions along strike.

HORCON MINE

The Horcon mine exploited part of the vein systems in the northwestern part of the district. Three principal vein sets have been recognized. A set of northwest trending veins, dipping steeply to the southwest, extend for many kilometers along strike and cut across the entire district. A second set of northwest to northerly trending veins dip at low angles, 20-30 degrees, to the southwest in the vicinity of the Horcon mine. These low angle veins were exploited by the Spaniards and are generally relatively narrow and intersect the high angle vein set, locally forming pods of high grade ore. The third set of veins is transverse to the others, striking northeasterly, with steep dips, and comprises relatively little of the mapped structures.

The main presently accessible working at the mine is the Horcon adit, which cuts across several of the veins and also intersects several stopes that exploited the low angle veins. Sample data from the walls of old workings and from pillars, provided to EXMIN by the concession owner, yielded up to 67 grams per metric ton (g/t) gold along with important concentrations of silver, lead and zinc from veins that vary from 10 centimetres to 2 metres in width (see table below). EXMIN geologists also collected samples to verify the values (see table below). Only limited modern exploration, consisting of geologic mapping and sampling, has occurred in this area. A few drill holes were completed in 2005 but only tested the veins at depth below the old workings, and no holes have been drilled in the main area of past mining activity or directly along strike.

THE DEAL

EXMIN has agreed to make staged payments over the five year term of the option agreement for a total purchase price of US $1.5 million (plus applicable 15% value added tax) for 100% of the rights to the concessions, subject to a net smelter return royalty (NSR) as described below, under the following terms:

1. Payment of US $25,000 on signing and payment of back taxes for 2006 of about US $5,000 (paid);

2. Payments totaling US $275,000 over three years;

3. Subsequent payments totaling US $1.2 million in the 4th and 5th years.

The properties are subject to a 1.5% net smelter return royalty capped at US$ 500,000 and that can be purchased for this amount at any time.

EXMIN will assume the normal requirements to keep the concessions in good standing with the Mexican Mining Secretariat. EXMIN can terminate the contract unilaterally at any time, with no further obligations to the titleholder. There is no work commitment other than that required by Mexican law.

QUALITY ASSURANCE

EXMIN's samples were prepared and analyzed by ALS Chemex at their labs in Mexico and Vancouver and generally consisted of 1-3 kg of material. Gold analyses were performed by 30 gram fire assay with an AA finish. Other elements were analyzed as part of a multi-element ICP package using an aqua regia digestion. The historical samples from previous exploration were also analyzed by ALS Chemex by fire assay with an AA finish and a multielement ICP package, but sample weights are not reported.

Dr. Craig Gibson, PhD., Executive Vice President of Exploration is the authorized professional geologist for EXMIN and the direct manager of all technical programs and information.



Sample data from previous exploration at the Horcon mine
---------------------------------------------------------------------------
Width Au Ag Cu Pb Zn
Sample meters g/t g/t % % %
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Raton Veins
-----------
24377 0.70 2.69 40 0.23 0.23 greater than
5.00
24378 0.65 5.68 53 0.22 1.29 greater than
5.00
24379 0.10 6.94 118 0.27 2.98 greater than
5.00
24380 1.00 4.41 73 0.20 0.86 3.26
24381 0.90 1.24 42 0.06 0.71 1.50
24382 0.50 3.47 74 0.25 2.75 3.95
24383 0.60 0.91 37 0.18 0.64 0.60
24384 0.50 3.72 140 0.36 3.66 greater than
5.00
24385 0.30 7.59 136 0.22 4.84 greater than
5.00
24386 0.40 2.60 53 0.25 1.19 1.92
24387 1.10 2.65 120 0.07 0.45 0.54
24388 0.85 16.70 106 0.40 8.80 greater than
5.00

San Guillermo Vein
------------------
25655 0.90 28.90 192 0.37 3.25 greater than
5.00
25656 0.60 42.00 148 0.26 2.73 greater than
5.00
25657 0.50 6.81 44 0.24 2.21 3.95
25658 0.30 9.80 280 0.38 2.41 2.54
25659 0.55 7.12 41 0.16 2.06 2.62
25660 0.25 6.31 56 0.26 3.43 greater than
5.00
25661 0.25 13.70 110 0.42 5.15 greater than
5.00
25662 0.35 43.10 168 0.40 4.20 greater than
5.00
25663 0.55 2.94 26 0.15 0.96 2.68
25664 0.35 1.49 25 0.09 3.09 4.49
25665 0.30 57.10 98 0.36 2.96 greater than
5.00
25666 0.50 26.40 66 0.30 2.42 greater than
5.00
25667 0.45 8.22 103 0.46 4.04 greater than
5.00
25668 0.50 13.90 80 0.29 2.36 4.16
25669 0.38 6.09 56 0.28 2.28 3.32
25670 0.30 3.95 30 0.13 1.43 2.33
25671 0.50 1.13 33 0.13 3.54 3.20
25672 0.60 3.58 16 0.07 0.99 0.88
25673 0.20 16.35 87 0.24 7.14 greater than
5.00
25674 0.35 4.75 25 0.08 0.96 1.52
25675 0.50 16.65 75 0.37 6.58 greater than
5.00

La Galvana Vein
---------------
25686 0.30 15.70 855 0.36 22.20 3.94
25687 0.30 3.83 56 0.19 0.85 1.34
25688 0.30 5.98 98 0.49 9.71 greater than
5.00
25689 0.30 0.43 12 0.03 0.48 0.54
25690 0.50 0.46 19 0.02 0.58 0.59
25691 0.70 67.90 104 0.08 1.52 1.13
25692 0.55 17.75 138 0.14 2.26 0.61
25693 0.35 0.69 19 0.03 0.41 0.78
25695 0.40 2.06 66 0.07 0.54 1.13

Unamed Vein
-----------
25645 0.30 6.53 55 0.19 6.29 greater than
5.00
25646 0.60 2.77 12 0.06 0.49 1.51
25647 1.10 0.47 4 0.02 0.20 0.38
25648 0.35 8.28 98 0.13 3.88 4.82

Diamantillo Vein
----------------
25643 0.75 0.62 2 0.01 0.29 0.20
25644 1.20 1.28 25 0.09 1.07 0.37
25697 2.00 2.78 20 0.09 0.67 0.93
25698 1.30 2.43 42 0.10 2.29 2.28
25699 1.80 0.09 7 0.02 0.07 0.08

Other veins
-----------
25641 1.30 0.50 19 0.07 0.51 0.70
25649 0.30 2.98 25 0.06 1.99 0.92
25650 0.40 2.02 93 0.10 1.71 1.03
25651 0.35 0.71 6 0.03 0.49 0.65
25652 0.30 2.21 256 0.03 0.13 0.12
25653 0.50 1.75 55 0.34 1.58 4.92
25654 0.20 0.05 20 0.23 1.04 1.00
25676 1.00 7.07 29 0.17 1.81 4.05
25677 0.30 40.80 134 0.54 2.06 greater than
5.00
25678 0.30 1.33 26 0.12 1.62 1.93
25679 0.25 0.99 43 0.09 3.42 greater than
5.00
25680 0.25 2.23 37 0.09 1.47 2.48
25681 0.30 0.08 1 0.01 0.04 0.16
25682 0.20 0.06 4 0.04 0.09 0.13
25683 0.40 0.43 14 0.00 0.05 0.09
---------------------------------------------------------------------------

EXMIN sample data from the Horcon mine
---------------------------------------------------------------------------
Width Au Ag Cu Pb Zn
Sample meters g/t g/t % % %
---------------------------------------------------------------------------
---------------------------------------------------------------------------
JM-Hor-26 0.3 less than less than -- -- --
0.005 0.2
JM-Hor-27 0.3 0.123 25.4 0.02 0.03 0.08
JM-Hor-28 0.4 0.028 4.8 0.04 0.04 0.07
JM-Hor-29 1.0 less than 459.0 0.01 0.04 0.15
0.005
JM-Hor-30 1.6 0.786 7.4 0.02 0.44 0.26
JM-Hor-31 1.0 5.000 66.9 0.07 0.87 0.54
RHOR-27 0.4 0.598 25.3 0.06 0.27 0.65
RHOR-28 0.5 0.897 33.2 0.04 0.25 0.23
RHOR-29 0.3 3.740 48.5 0.25 2.72 2.96
RHOR-30 0.4 0.194 4.2 0.01 0.23 0.20
RHOR-31 1.7 1.570 66.4 0.57 3.53 5.46
693 0.3 5.200 63.9 0.36 4.20 7.43
694 0.3 0.163 7.3 0.01 0.09 0.19
695 0.3 0.207 19.7 0.09 0.31 0.41
696 0.4 0.475 40.8 0.07 3.02 4.56
---------------------------------------------------------------------------


About EXMIN

EXMIN Resources Inc. is currently focused on the exploration and development of precious metal properties of significant merit in the Sierra Madre gold belt of Northwestern Mexico.

Note: EXMIN Resources Inc. (EXMIN) has taken all reasonable care in producing and publishing information contained in this news release. Material in this news release may still contain technical inaccuracies, omissions or typographical errors, for which EXMIN assumes no responsibility. This news release may include certain "forward-looking statements" including but not limited to comments regarding predictions and projections. All statements, other than statements of historical fact, included in this news release, including, without limitation, statements regarding potential mineralization, exploration results, and future plans and objectives of EXMIN, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in documents filed from time to time with the regulatory authorities.

The TSX Venture Exchange has not reviewed this release and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • EXMIN Resources Inc.
    Karl J. Boltz
    President & CEO
    1-888-244-0304
    or
    EXMIN Resources Inc.
    Investor Relations
    1-888-244-0304
    Email: info@exmin.com
    Website: www.exmin.com