TORONTO, July 9, 2012 /PRNewswire via COMTEX/ — Toronto Stock Exchange – EXN
132 g/t (3.8 oz/T) Silver; 3.1% Lead, 1.7% Zinc over 55 metres Including 264 g/t (7.7 oz/T) Silver; 10.4% Lead, 7.5% Zinc over 3.2 metres
Platosa Exploration Highlights:
Hole LP1019 has encountered several intervals of semi-massive to massive sulphides within 55.46 m of pyroxene and garnet-rich skarn at Rincon del Caido, 1.1 km northwest of the Platosa Mine. The skarn occurs at a marble-hornfels contact and the entire 55.46 m runs 132 g/t Ag, 3.13% Pb, 1.74% Zn and 0.075 g/t Au;
Five strongly mineralized intervals have been identified within the 55.46 m. Two of these run 336 g/t Ag, 3.27% Pb, 1.96% Zn and 0.240 g/t Au over 4.10 m and 264 g/t Ag, 10.41% Pb, 7.59% Zn and 0.041 g/t Au over 3.27 m respectively;
This is the first time persistently anomalous gold has been intersected at Platosa;
This discovery clearly suggests increasing proximity to the Source of the high-grade Platosa mantos;
Comparison with similar deposits in Mexico suggests mineralization should be traceable between the Platosa Mine and this new area;
A third drill has been mobilized to the site and three rigs are now deployed at Rincon del Caido
Excellon Resources Inc. /quotes/zigman/17226 CA:EXN +7.81% (“Excellon” or “the Company”) Mexico’s highest grade silver producer, is pleased to report results for hole EX12LP-1019 drilled in the Rincon del Caido area adjacent to previously reported holes LP986 and LP1008, both of which encountered encouraging “Source”-type geology and sulphide mineralization.
Hole LP1019 encountered several important sulphide intervals between 516.70 m and 604.00 m down hole, with the bulk of the mineralization found between 516.70 m and 572.16 m. All the mineralization is hosted by a pyroxene and garnet-rich skarn located either at or near a marble-hornfels contact. The hole bottomed in a granitic intrusive at 914 m depth.
John Sullivan, Vice-President of Exploration states; “Management believes that Hole LP 1019 provides the clearest evidence to date that we are now in a Source environment and are getting closer to the large-tonnage CRD/Source that has been the ultimate object of the Company’s exploration program since it acquired the Platosa property in 1996.” He further noted: “Hole LP1019 displays the style and magnitude of near-Source mineralization that we have anticipated for some time. The exploration team has collected and pieced together the pieces of the highly complicated Platosa geotechnical puzzle and we are delighted that their patience and diligence have again paid off with an important discovery.”
The mineralization shows multiple stages of development with the pyrite-rich semi-massive to massive portions, which resemble the sulphides being mined from the Platosa mantos, clearly overprinting earlier garnet and pyroxene skarn. Company geologists believe the high lead content, consistently anomalous gold values and skarn mineralogy indicate that this area is still somewhat distal to the Source itself, but may lie along the feeder system that leads to the Source. The Source may lie between Rincon del Caido and the high-grade Platosa mantos presently being mined, or farther to the northwest. Given the volume of mineralization, and its high pyrite content, the Company plans to carry out downhole geophysical surveying in mid-July to determine if vectors can be discerned to guide additional drilling. In the meantime all three on-site exploration drills are concentrated at Rincon del Caido.
Assays for the hole LP1019 intersections, with the exception of the interval from 602 m to 604 m where assays remain pending, are found in the table below and Rincon del Caido hole locations are shown on Map 2. Map 3 is a composite cross-section showing holes LP763, LP986, LP1008 and LP1019. The intervals mentioned in this press release are core widths. Mineralization banding lies at a high angle to the core axis, but more geometric information is required to confidently estimate true thicknesses.
Table: Platosa Assay Results (intervals are core widths)
Location DDH Interval Interval Interval Silver Lead Zinc Gold
# From (m) To (m) width (m) (g/t) (%) (%) (g/t)
Rincón del Caído LP1019 516.70 572.16 55.46 132 3.13 1.74 0.075
Incl. 516.70 520.80 4.10 336 3.27 1.96 0.240
and 524.69 544.40 19.71 161 3.34 1.80 0.110
and 546.83 549.80 2.97 236 7.18 5.46 0.146
and 562.73 566.00 3.27 264 10.41 7.59 0.041
and 569.72 572.16 2.44 452 15.43 3.89 0.069
Since the exploration press release dated May 30, 2012 three other holes in addition to hole LP1019 have been drilled at Platosa. One was abandoned prior to target depth because of technical problems. All encountered minor sulphides, but none intersected metal values of significance.
Mexican drill core samples are prepared and assayed by SGS Minerals Services (“SGS”) in Durango, Mexico. The lab is accredited to ISO/IEC 17025. The Company has a comprehensive QAQC program, supervised by an independent Qualified Person.
Qualified Persons The Company’s exploration programs are supervised by John Sullivan, Excellon’s Vice-President of Exploration, in consultation with Dr. Peter Megaw of IMDEX Inc.
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.
Dr. Megaw has a PhD in geology and more than 30 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. 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.
Peter A. Crossgrove Executive Chairman
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.