EXN-pretty hot news release-still hasn't traded, but bids are building.
Excellon Resources Inc (C-EXN) - News Release
Excellon drills 9.5 m of 1,718 g/t Ag at Platosa
2006-08-28 13:29 ET - News Release
Shares issued 130,703,720
EXN Close 2006-08-25 C$ 0.94
Mr. Richard Brissenden reports
EXCELLON DRILLING CUTS WHAT MAY BE BEST INTERSECTION YET ON PROPERTY
Excellon Resources Inc.'s drilling has intercepted what may be the best intersection ever on its 100-per-cent-owned Platosa property in Durango state, Mexico. Hole LP-288 has cut 20 metres of mineralization, composed of nearly 10 metres of solid massive sulphides flanked by sulphide-rich breccia and variably mineralized limestone. This intersection lies 30 metres beyond the northern limit of the Guadalupe manto as outlined in the Scott Wilson RPA, independent geological and mining consultant, National Instrument 43-101 mineral resources estimate reported in Stockwatch on Aug. 17, 2006. An adjacent hole, hole LP-293, cut 15 metres of similar mineralization, including four metres of solid massive sulphides. LP-293 lies halfway between LP-288 and the northern limit of the Guadalupe manto, as defined by the NI 43-101 mineral resources estimate.
These recent holes appear to define a northwest trend of thickening mineralization, open into untested ground to the northwest and away from the NI 43-101 limits of the Guadalupe manto. Drilling is pursuing this trend. Assays for both holes are in progress, but hole LP-196, which lies just to the southeast along the trend (within the NI 43-101 limits of the Guadalupe manto), cut 9.5 metres grading 1,718 grams per tonne (55.2 ounces per ton) silver, 15.2 per cent lead and 11.6 per cent zinc. Of this, three metres were solid massive sulphides.
In addition, Excellon is pleased to report assay results for significant intersections in holes LP-229 to 251 (see table below). All of these holes are step-outs on 15-metre grid centres beyond the limits of the recent NI 43-101 mineral resources estimate for the Guadalupe and Guadalupe South mantos. They reflect seven (three from Guadalupe and four from Guadalupe South) of 18 significant mineralized intersections that could not be included in the resources estimate due to assay data not being available at that time (see news in Stockwatch of Aug. 17, 2006). The black sulphide sands cut in hole LP-251 were not included in the Aug. 17, 2006, news in Stockwatch as they were not considered significant until assay results showed they contain 4,818 g/t (154.9 ounces per ton) silver. Assays for the remaining 11 intersections (seven from Guadalupe and four from Guadalupe South) are in progress, as are five (including the two mentioned in the first paragraph above) additional significant sulphide intersections cut since that release was made.
"We are very encouraged by the thickness trend emerging from the recent Guadalupe manto intersections since regional experience shows that mantos typically thicken and get larger towards their source. The Guadalupe is already larger than all the mantos 4, 5 and 6 combined, upon which the test-mining operation was initiated, so having it increase in thickness is a favourable indication that we're exploring in the right direction. Now that we have established a solid foundation of over two years of test-mine life we look forward to following this manto to its source," said Richard Brissenden, Excellon's chairman. "We are also delighted to report that holes lying outside the NI 43-101 mineral resources estimate continue to show substantial thicknesses and grades. These lie on the 15-metre grid pattern up to 45 metres beyond the limits of the current estimate of mineral resources and experience suggests that these are continuations of the major mantos. We expect this mineralization will add significantly to the life of our test mine."
Three surface drilling rigs are operating on the Platosa/Saltierra properties: one drilling regional targets, one drilling the northwest extension of the Guadalupe manto, and one drilling the area between the N-1 and the Guadalupe mantos. In addition to the intersections around the Guadalupe mantos mentioned above, assays are pending for a number of the regional holes, including two drilled 17 kilometres to the south of the Platosa mine at the Cerros San Gilberto target, where high silver values (some greater than 500 g/t) have been encountered in a series of old prospect pits. Regional geophysical data suggest this may be linked to the Platosa system. An update on the regional drilling will be issued within the next month.
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 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.
Hole From To Interval Estimated true Recovery Ag Pb Zn
m m m thickness % g/t % %
Guadalupe manto
LP229 133.90 135.80 1.90 1.6 100 775 8.6 9.8
and 139.80 141.15 1.35 1.15 99 800 7.8 12.1
LP238 146.65 149.60 2.95 2.90 97 814 3.6 3.2
LP240 127.20 128.75 1.55 1.20 86 1,035 7.5 4.4
incl. 127.20 127.75 0.55 0.45 86 2,763 20.5 12.3
LP251 157.00 157.60 0.60 0.55 80 4,818 0.02 0.02
Guadalupe South manto
LP230 159.95 162.25 2.30 2.30 87 835 8.4 2.8
LP233 163.50 170.50 7.00 6.00 88 1,245 11.5 31.5
incl. 166.50 167.50 1.00 0.85 89 2,993 16.1 33.3
LP234 133.00 135.85 2.85 2.85 100 1,892 13.1 28.4
incl. 133.75 134.80 1.05 1.05 100 2,997 11.6 37.4
LP250 167.42 169.77 2.35 2.35 72 980 5.2 3.1
incl. 168.94 169.77 0.83 0.83 72 2,235 11.8 7.2
The Platosa exploration program is designed and supervised by Dr. Megaw, Excellon's consulting geologist and exploration manager of its Mexican subsidiary. Assaying is being performed by SGS Laboratories of Don Mills, Ont., with check assaying by ALS Chemex of Vancouver, B.C., and/or BSI Inspectorate of Reno, Nev. Scott Wilson RPA executed the engineering design and is continuing technical adviser of the test-mining program.
Excellon, an emerging silver producer, is using proceeds from its test-mining operation to explore its 14,692-hectare Platosa/Saltierra properties in northeastern Durango state, Mexico. Taking advantage of a unique convergence of infrastructure, high-grade ore and low production costs, the company has built a significant treasury and will remain self-financed well into the future as it tracks the carbonate replacement deposit believed to be at Platosa. |
