TORONTO, May 30, 2012 /PRNewswire via COMTEX/ — Toronto Stock Exchange – EXN
Mexican Exploration Highlights:
Hole LP1008 drilled at Rincon del Caido near previously disclosed hole LP986 and testing the same stratigraphy has encountered two mineralized zones separated by 100 metres (“m”) within the same marble unit. The upper zone assayed 332 g/t (9.7 oz/T) Ag, 11.40% Pb, 9.74% Zn over 1.91 m. A narrow felsic dyke, another indication of a Source environment was found between the two intersections;
Hole LP986 released April 13, 2012 encountered mineralized marble associated with a sub-horizontal structure 185 metres (“m”) above a felsic intrusive body. The zone assayed 398 g/t (11.6 oz/T) Ag, 3.97% Pb, 4.80% Zn over 1.45 m; and
The Company plans to add a drill rig to the Rincon del Caido area in June, bringing the total at La Platosa to three.
Canadian Exploration Highlights:
Hole DS12-004 drilled on the DeSantis property in Timmins, Ontario and designed to test the down-dip and plunge extension of the Albitite Zone intersected 1.74 g/t Au over 12.00 m including 10.39 g/t Au over 1.50 m.
Company geologists are working to determine the significance of this intersection as they plan the next program on the property.
Excellon Resources Inc. /quotes/zigman/17226 CA:EXN +1.89% (“Excellon” or “the Company”) Mexico’s highest grade silver producer, is pleased to report results for two new drill holes in Mexico and one in Canada. The Mexican holes were drilled adjacent to hole LP986 and again intersected Source-type geology and mineralization. The Canadian hole was drilled in an effort to test for an extension of the Albitite Zone on the DeSantis property.
John Sullivan, Vice President of Exploration states; “We are very encouraged by the Rincon del Caido intersections, which continue to reinforce our belief that this is an important Source environment area. With the planned addition of a drill rig to this area, we are demonstrating this belief that the area holds considerable discovery potential and validates our strategy as we continue to develop exploration targets for both additional manto mineralization and the Source of the high-grade Platosa mantos. Mr. Sullivan further added: “The DeSantis intersection is also encouraging and work is underway to determine its potential significance.”
Mexican Exploration Update: Holes LP995 and LP1008 drilled west and east of LP986 respectively both intersected Source-type geology and mineralization in the same marble unit as that encountered in hole LP986. Hole LP995 intersected disseminated to patchy sulphide mineralization over 7.71 m and while it had only slightly anomalous metal values, the character of the mineralization and its location were very similar to that of hole LP986. Hole LP1008 intersected two mineralized zones separated by 100 m. The upper zone is located 100 m above the zones intersected in holes LP986 and LP995 and assayed 332 g/t (9.7 oz/T) Ag, 11.40% Pb, 9.74% Zn over 1.91 m. A narrow felsic dyke, another indication of a Source environment was found between the upper and lower zones. The second zone coincides in depth with that of hole LP986. It hosts three narrow areas of disseminated to semi-massive sulphides within an overall width of 5.37 m. The most significant of the three assayed 608 g/t (17.7 oz/T) Ag, 4.14% Pb, 7.32% Zn over 0.34 m.
Complete assays for the hole LP1008 intersections are found in Table 1 below and Rincon del Caido hole locations are shown on Map 2. The intervals in LP1008 are estimated true thicknesses. In addition to holes LP995 and LP1008 there have been nine other holes drilled at Platosa since the exploration press release dated April 13, 2012. While some of these nine holes encountered minor sulphides, none intersected metal values of significance.
Drilling continues at Rincon del Caido with one rig while a second drill continues the search for additional high-grade carbonate replacement deposit (“CRD”) massive sulphide mantos. During June, the Company plans to mobilize a third rig, specifically to advance the portion of the program targeting the large-tonnage proximal source of these mantos (“the Source”).
Table 1: Platosa Assay Results (intervals are estimated true thicknesses)
Location DDH Interval Interval Interval Silver Silver Lead Zinc
# From To width (g/t) (oz/T) (%) (%)
(m) (m) (m)
Rincón del Caído LP1008 521.13 523.04 1.91 332 9.7 11.40 9.74
and 623.04 623.38 0.34 608 17.7 4.14 7.32
and 625.67 625.85 0.18 80 2.3 2.03 0.31
and 628.07 628.41 0.34 146 4.3 0.85 0.19
With respect to other priorities, the Natural Source Audio Magnetotelluric (“NSAMT”) ground geophysical survey over selected portions of the Platosa Property, which commenced in late-April was completed in late-May. Results are now being analyzed, interpreted and integrated into the Company’s geotechnical database. Company geologists will generate new drill targets based on this work in the coming months.
Canadian Exploration Update: During late 2011 and the winter and early spring of 2012, the Company completed 12 drill holes on the DeSantis property located immediately south of the city of Timmins covering a portion of the Destor-Porcupine Tectonic Zone. These holes were in addition to those reported in the press release dated October 18, 2011. Three holes tested the Hydrothermal Zone and encountered only minor gold values. Four holes tested targets on the DeSantis West portion of the property and intersected no significant gold values. The remaining five holes were designed to test for down-dip and plunge extensions of the Albitite Zone located immediately east of the DeSantis #2 shaft. Hole DS12-004 intersected 1.74 g/t Au over a 12.00 m core width including 10.39 g/t Au over 1.50 m. These values were hosted in an altered mafic volcanic unit with 3% to 5% pyrite and believed to form part of the Albitite Zone. The other four Albitite Zone holes encountered no significant values.
Company geologists are working to determine the potential significance of the DS12-004 intersection as they plan the next work program on the property. Assays for the complete 12.00 m intersection are provided in Table 2 below and hole locations are shown on Map 3. The assay intervals are reported as core widths as not enough is known about the occurrence to estimate true thickness.
Table 2: DeSantis Assay Results (intervals are core widths)
Location DDH Interval Interval Interval Gold
# From To (m) width (g/t)
(m) (m)
Albitite Zone DS12-004 836.00 837.50 1.50 0.860
837.50 839.00 1.50 0.022
839.00 840.50 1.50 1.685
840.50 842.00 1.50 0.057
842.00 843.50 1.50 0.008
843.50 845.00 1.50 –
845.00 846.50 1.50 0.895
846.50 848.00 1.50 10.39
Weighted Average 836.00 848.00 12.00 1.74
Mexican drill core samples are prepared and assayed by SGS Minerals Services (“SGS”) in Durango, Mexico. The Durango lab is accredited to ISO/IEC 17025. Canadian drill core samples are prepared and assayed by ALS Chemex Ltd. at its Timmins ISO 9001-200 accredited laboratory. The Company has a comprehensive, industry-standard QAQC program in place.
Qualified Person Mr. John Sullivan, BSc., PGeo., Excellon’s Vice President of Exploration has acted as the Qualified Person, as defined in NI 43-101, for this disclosure.
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 of the Company.
About Excellon Excellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, and Ontario and Quebec, Canada, is committed to building value through production, expansion and discovery. Excellonis Mexico’s highest-grade silver producer; it produces silver, lead and zinc from the high-grade manto Mineral Resource on its large, 100% owned Platosa Property, strategically located in the middle of the Mexican CRD/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 Miguel Auza Mill Operation in Zacatecas also has 41,000 hectares of underexplored land. Excellon also has ongoing gold exploration programs on the DeSantis Project, located near Timmins, Ontario and the Beschefer Project, located in northwestern Quebec. Both these projects host gold mineralization and significant potential for the discovery of more. Excellon will continue to use cash from operations to fund its ongoing exploration activities.
On behalf of
EXCELLON RESOURCES INC.
“Jeremy Wyeth” President and Chief Executive Officer
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. 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 November 22, 2011 NI 43-101-compliant technical report prepared by 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.
