2006-08-17 09:45 ET - News Release
Shares issued 130,703,720
EXN Close 2006-08-16 C$ 0.87
Mr. Richard Brissenden reports
EXCELLON RESOURCES INC.: NEW PLATOSA MINERAL RESOURCES ESTIMATE OVER 180,000 TONNES
Excellon Resources Inc.'s new mineral resources estimate will allow test mining to continue for at least two years at its 100-per-cent-owned Platosa project, located near Bermejillo, Mexico. Scott Wilson Roscoe Postle Associates Inc., independent geological and mining consultants, prepared the estimate as at May 9, 2006, and in accordance with the guidelines set forth in National Instrument 43-101.
PLATOSA PROJECT -- SUMMARY OF MINERAL RESOURCE ESTIMATE
Category Tonnes Capped Ag Pb Zn
(t) (g/t) (%) (%)
Indicated 184,500 1,546 10.86 10.50
Inferred 8,200 777 5.47 11.31
Most of the tonnage (143,900 tonnes) included in the new estimate lies in the recently discovered Guadalupe and Guadalupe South mantos, for which access design is in progress. Subsequent step-out drilling of these two mantos on 15-metre centres has yielded 18 additional massive sulphide and sulphide-breccia intersections outside the interpretation in the current resource estimate: 10 in the Guadalupe manto ranging from 0.8 metre to 3.2 metres in thickness; and eight in the Guadalupe South manto ranging from 0.6 metre to six metres in thickness. Mineralization in these holes includes both massive sulphides and sulphide breccias and appears to be laterally continuous to these mantos. Assay results from these holes are pending and drilling is continuing to define the limits of both of these mantos.
"The new Scott Wilson RPA NI 43-101 resource estimate has exceeded our expectations in several respects. We are pleased to have confirmation that not only has additional economic mineralization occurred between and immediately outside of our original mantos, but that grades were higher than expected. Coupling this with substantially improved metal prices has helped to build the $11-million treasury we have today, and we've only just started to mine the highest-grade zone included in the original resource estimate prepared by Scott Wilson RPA in September, 2002," said Richard Brissenden, Excellon's chairman. "Looking to the future, we are also delighted to see that the Guadalupe and Guadalupe South mantos continue to expand. The Guadalupe discovery is larger than the 2002 resource that was the basis for initiation of the test mining, and additional drilling has extended both these new mantos in several directions. We are confident that we've added at least two years to our mine life, which gives us a lot of time to continue exploring this rapidly expanding high-grade system."
The estimate is based on previously announced drill-hole data up to hole EX06LP228, which was completed on June 1, 2006, and production data to May 9, 2006. The resources were estimated through block modelling in Gemcom software. Volumes were constrained using 3-D wireframes interpreted at a cut-off grade of $30 (U.S.) per tonne net smelter return value. Assumptions used for the NSR calculation include metal prices of $7.30 (U.S.) per ounce Ag, 35 U.S. cents per pound Pb, and 63 U.S. cents per pound Zn. Silver grades were capped at 10,000 grams per tonne prior to compositing. Silver, lead and zinc grades from two-metre composites were interpolated throughout the blocks within the wireframes using the inverse distance squared method. The mineral resource estimate for the Guadalupe mantos is based on 94 vertical and inclined diamond drill holes totalling 15,481 metres of HQ size core. Most holes are aligned along northeast-to-southwest oriented sections spaced 15 metres apart for an average drill hole spacing is approximately 15 metres to 20 metres. More than 500 silver, lead and zinc assays, with an average interval length of 1.07 metres, were used to develop the mineral resource estimate. The resource estimate is based on an average specific gravity of 3.12. Scott Wilson RPA states that, in its opinion, this figure is conservative and it recommends that a systematic program be implemented for SG determination. It further states that it believes better definition of the SG may result in a higher SG for future resource estimates. The estimate is of mineral resources only and, because these do not constitute mineral reserves, they do not have any demonstrated economic viability.
Qualified persons and quality assurance and control
Dr. Peter Megaw, PhD, CPG, has acted as the qualified person, as defined in NI 43-101, for the exploration data and supervised the preparation of the technical exploration information on which some of this news release is based. Dr. Megaw has a PhD in geology and more than 20 years of relevant experience focused on silver and gold mineralization, and exploration and drilling 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 and his company are shareholders.
D.W. Rennie, PEng, a consulting geological engineer, and James L. Pearson, PEng, a consulting mining engineer, 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. Pearson, and Scott Wilson RPA are independent of Excellon.
We seek Safe Harbor. |
