EXMIN Resources Inc.
TSX VENTURE : EXM

EXMIN Resources Inc.

July 10, 2007 09:22 ET

EXMIN Announces Production at the Moris Mine, Chihuahua, Mexico, and Strategic Alliance With the Hochschild Mining Group

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 10, 2007) - EXMIN Resources Inc. (EXMIN) (TSX VENTURE:EXM) is pleased to provide an update on activities at the Moris Mine, a joint venture between EXMIN (30%) and the Hochschild Mining Group (70%) (Hochschild) (LSX:HOC), as described in press releases dated July 19, 2006, and Jan 18, 2007. Rehabilitation and refurbishing of the mine facilities is on track and leaching operations are scheduled to commence by the end of July, 2007.

The historic resource is currently estimated by National Instrument 43-101 (see News Release of March 2, 2007, and the NI 43-101 report filed on www.sedar.com). The amounts included in the report are only part of the historical resource defined by Manhattan Minerals in the 1990's (see Tables 1 and 2 below).

Exploration of the property acquired with the purchase of the mine is underway. Reconnaissance visits to two areas on the mine property, Moris Mine Norte and El Cajon, have yielded sampled results with grades of as much as 3.3 grams per metric ton (g/t) gold and 1,385 g/t silver and 1.9 g/t gold and 226 g/t silver, respectively. Exploration has also commenced at Los Arabes, the southern extension of the Tecolote structural zone, on a concession that is part of the mine property. Surface sampling has yielded interesting gold values in narrow veins and vein swarms at the surface. Three diamond drill holes were completed to test this area; the structural zone was intersected with quartz veining and silicification. Gold values were generally anomalous.

Karl J. Boltz, President and CEO of EXMIN, stated, "EXMIN is pleased with the pace of work at the Moris Mine. Hochschild has excelled in its efforts to get the mine into production, and the work is on schedule. The mine plan and initial investment have been modified to commence production at maximum operating capacity, minimize potential future problems and economize on the total costs of the operation."

"In Moris," said Boltz, "the EXMIN/Hochschild production joint venture has aggressive plans for further exploration on the mine property. We believe that the new, recently sampled areas, along with the portions of the historical resource that have not yet been brought into the reserve category, indicate excellent potential to increase the resources of the mine."

"Hochschild has again elected to make a private placement in EXMIN," he continued, "and has entered into the Strategic Alliance with EXMIN (announced yesterday) to rapidly develop more properties in Mexico."

Moris Mine

Rehabilitation and modification of the installations at the Moris Mine are well underway. Modification of the original mine plan have been made based on studies of the equipment available at the crushing plant and on the past operation by Manhattan minerals. The initial capital investment at the project has been increased from USD 9.7 million to about USD 15.7 million, to fund exploration of the mine property, increase crushing capacity early in the mine operation, accelerate leach pad construction and operating expenses prior to recovery of gold-silver dore, which is anticipated by September.

A new tertiary crusher is being added in series to the current crushing circuit to permit production of 3,000 tons per day (tpd) beginning in July. Crushing of approximately 30,000 tons of stockpiled ore will commence shortly at about 2,000 tpd to load test the crushing and conveyor systems and to provide material for the leach pads until the new crusher has been installed. The operation is designed to stack 90,000 tons of crushed and agglomerated ore each month which corresponds to one 8 metre high layer or lift on the leach pad, and starting crushing at a lower rate will allow that figure to be reached by the end of July. The ore in each lift will be leached an entire 90 day leach cycle prior to stacking an additional lift. Each leach pad will have 4 lifts for a total of 32 metres.

The construction of leach pads has been accelerated to allow stacking of ore on a separate pad while the first pad is being leached. This has required an increase in the initial investment for construction of the additional pads earlier in the mine operation. Preparation of the first leach pad and rehabilitation of holding ponds is well advanced.

More Potential Reserves

The current historic resource figures for the Moris Mine are indicated in the tables below. These amounts include only the portions of the deposit that were studied during the due diligence period, and do not include all of the historical resources defined by Manhattan Minerals (Manhattan), the former operator of the mine. Work is planned to validate the portions of the historical resource as defined by Manhattan that have not yet been brought into the current resource category.

A drill program is planned to sample the leach pad that was left by Manhattan. There are indications that the ore stacked on the pad still contains a significant amount of gold because the rock was not crushed finely enough nor was it agglomerated. Recoveries during the latter period of the mine operation were much lower than the 60-70% that can be achieved when the rock is crushed and prepared according to the metallurgical studies. A grab sample taken by EXMIN from the top of the heap assayed 1.3 g/t gold. Please see the News Release of Jan 18, 2007, for a more complete discussion of the historical mine operation data.



Table 1 - Historical Resource per NI 43-101
Creston + San Luis + Eureka
Cutoff 0.5 g/t Au
Pit Final

Measured and Indicated
------------------------------------------------------
Ore Waste Strip
Deposit Tonnes Au g/t Ag g/t Tonnes Ratio
------------------------------------------------------
Creston 1,620,879 1.497 4.776 1,711,737 1.06
------------------------------------------------------
San Luis 2,109,060 1.239 5.061 865,079 0.41
------------------------------------------------------
Eureka 350,681 1.082 4.840 636,784 1.82
------------------------------------------------------
Total 4,080,620 1.328 4.929 3,213,600 0.79
------------------------------------------------------


Table 2 - Historical reserves and resources reported by
Manhattan in 2000
--------------------------------------------------------------------------
Category Tonnes (000) Au (g/t) Ag (g/t) Au (oz) Ag (oz)
--------------------------------------------------------------------------
Mineable Reserves 3,139 1.73 6.55 174,672 661,399
--------------------------------------------------------------------------
Measured and Indicated
Resources (includes
reserves) 4,050 1.62 5.79 210,941 753,919
--------------------------------------------------------------------------
Inferred Resources 667 1.86 4.65 39,887 99,717
--------------------------------------------------------------------------
Total Resources 4,717 1.66 5.63 251,747 853,818
--------------------------------------------------------------------------

Note: EXMIN is reporting data from the operation of Manhattan Minerals
from 1996-2000. These data were generated before current industry
regulations were adopted under NI 43-101 standards. EXMIN considers these
data 'historical' in nature and has engaged a Qualified Person to complete
a report under NI 43-101 guidelines in order to recalculate the
'historical estimate' following CIM classifications, and until complete,
the 'historical information' should not yet be relied upon. The EXMIN-
Hochschild JV is in the process of replacing the 'historical data' with
due diligence data of its own, as reported in this release.


Moris Mine Property Exploration

Exploration on several areas within the property that was acquired along with the Moris Mine has been initiated over the last few months. Reconnaissance sampling of two areas, Moris Mine Norte and El Cajon, has yielded relatively high grade assays (see table below). The Moris Mine Norte is located about 3 km north of the Moris mine along the same structural zone. The Cajon area is located about 5 km SW of the Moris Mine on a large alteration zone associated with an intrusive rock. Both of these areas could potentially provide mill feed for the Moris Mine and further exploration is planned for later this year.



Assays from Moris Mine Norte
------------------------------
Width Au Ag
Sample (m) (g/t) (g/t)
------------------------------
44093 4.0 0.23 171
------------------------------
44094 16.0 0.15 166
------------------------------
44095 3.3 1.85 631
------------------------------
44096 1.7 3.31 1385
------------------------------
44097 2.3 0.10 93
------------------------------


Assays from El Cajon area
------------------------------
Width Au Ag
Sample (m) (g/t) (g/t)
------------------------------
44086 5.0 1.30 257
------------------------------
44087 1.5 1.49 177
------------------------------
44088 0.8 1.60 226
------------------------------


New Targets

The Los Arabes area was also acquired by the joint venture in the Moris Mine land package. It is located near the Tecolote target area (inside the exploration joint venture land package) and was drilled prior to the drilling at Tecolote. Los Arabes hosts a zone of narrow quartz veins has been traced for 900 metres and appears to be in a structural zone that is lateral to and along strike from the structures explored at the Tecolote target, and is approximately 300 to 500 metres lower in elevation. Although surface sampling indicated locally interesting gold values in the quartz veins, the drilling intercepted veining with anomalous gold values (see following table). The drilling was completed in easily accessible areas along existing roads and further work is planned to explore this structural zone along strike.



Assays and drill hole data from Los Arabes area drilling
----------------------------------------------------------------
Total
Depth Depth Intercept Au
Hole (m) Azimuth Inclination m m g/t
----------------------------------------------------------------
HMLA-1 163.0 270 -5 125.95 0.90 0.38

HMLA-2 300.0 270 -70 19.55 1.00 0.37
27.90 1.10 0.46
129.25 2.25 0.28
139.40 0.80 0.83

HMLA-3 100.7 90 -50 Weak anomalous values
----------------------------------------------------------------


Quality Assurance

Hochschild completes its exploration programs and resource calculations under the Australian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC Code). All of the samples were prepared and analyzed by ALS Chemex at their labs in Mexico and Vancouver, respectively. Gold analyses were by Fire assay with and atomic absorption finish. Silver was analyzed as part of a multi-element ICP package using an aqua regia digestion.

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

About Hochschild

Minera Hochschild Mexico (MHM) is a subsidiary of Hochschild Mining plc (HOC.L for Reuters / HOC LN for Bloomberg), a publicly held company listed on the London Stock Exchange. Hochschild is a leading precious metals company with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild currently operates four underground epithermal vein mines, three located in southern Peru and one in southern Argentina. Hochschild also has two advanced stage development projects, one in each of Mexico and Peru and one early stage development project in Mexico. In addition, Hochschild has over twenty long-term prospects throughout Latin America and has over forty years experience in the mining of precious metal epithermal vein deposits. For further information please visit www.hochschildmining.com.

Neither EXMIN's joint venture partner, Minera Hochschild Mexico, nor Hochschild Mining plc or any of its subsidiaries, accept any responsibility for the use of project data or the adequacy or accuracy of this release.

About EXMIN

EXMIN Resources Inc. (EXMIN) is currently focused on the exploration and development of precious metal properties of exceptional merit in the Sierra Madre gold belt of Northwestern Mexico as well as in other highly mineralized areas of 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