EXCELLON RESOURCES INC.
Suite #915 - 20 Adelaide Street East
Toronto, Ontario
M5C 2T6
PRESS RELEASE
VSE: EXN For Immediate Release
August 20, 1998
Toronto, Ontario.........Excellon Resources Inc. (EXN) is pleased to
announce that it has finalized its agreement with Apex Silver Mines
Corporation ("Apex") with respect to its Platosa property in Durango State,
Mexico. Apex is a world wide mining, exploration and development company
with a primary focus on silver. Its shares are listed on the American Stock
Exchange (Symbol SIL).
Under the terms of the agreement, Apex can earn a 65% direct interest in the
property with Excellon retaining a 35% interest. At that point a new
Mexican Corporation will be formed with Apex owning 65% of the shares and
Excellon 35% of the shares with Apex as the operator. Should Apex decide to
bring the property into production it would provide Excellon with a bankable
feasibility study. Apex is in the process of applying for drill permits
with a view to commence an initial drilling program once drill permits have
been obtained.
The agreement provides for the following property and minimum exploration
expenditures (all $ U.S.).
Minimum
Payments by Apex Expenditures
to EXN by Apex
On Signing $ 75,000 (paid) $ -
End of Year 1 150,000 100,000
End of Year 2 250,000 200,000
End of Year 3 300,000 300,000
End of Year 4 300,000 400,000
End of Year 4.5 275,000 -
End of Year 5 - 500,000
$ 1,350,000 $1,500,000
EXN is responsible for making all property payments (totaling $973,000 over
4.5 years) to the underlying property owner during the option period.
The Platosa property (approximately 20,000 acres) is located 5 kms northwest
of the town of Bermijillo, Durango State, Mexico and lies 1.5 kms from a
major paved highway, railroad and electric supply. An initial
reconnaissance program was carried out in October, 1997 by Excellon's
geological consultants which included geochemistry, geological
interpretation, mapping and sampling (47 samples). The following summary is
taken from their report.
Mineralization observed at Platosa is typical of that seen throughout the
2,200 km long belt of replacement-skarn deposits that crosses northern
Mexico. Platosa lies centrally within this belt and offers attractive
possibilities for containing additional economic base and precious metals
rich skarn- replacement ores. The area lies only 25 km from the Ojuela Mine
at Mapimi which produced 5-6 million tons of ore grading in excess of 3.5
g/T Au, 475 g/T Ag, 15% Pb, 10% Zn and .2% Cu (Penoles Company data, 1986).
There has been previous mining at Platosa where more than 75,000 tons of
high grade ores were recovered from the old workings. Five selected samples
were taken from the existing underground workings. Assays from the samples
ranged from 5.1% to 39% Zn, 12% to 19% Pb, 960 g/T to 1600 g/T Ag, 0.3 g/T
to 9.6 g/T Au and 1% to 3% Cu. Furthermore 1970's vintage smelter
liquidation sheets for the Platosa Mine ores show 0.35-1.75 g/T Au, 3,000-
3,750 g/T Ag, 30-40% Pb, and 2.0-12% Zn. The fact that these grades, and
the style of mineralization, are very similar to those at Mipimi, strongly
indicates the Mapimi-like orebodies and/or metals contents might be expected
at Platosa. The property has been owned by a Mexican family and until EXN's
recent involvement has never had modern geological techniques applied to it
nor has it ever been drilled.
The agreement with Apex is subject to acceptance for filing by the Vancouver
Stock Exchange.
On behalf of
EXCELLON RESOURCES INC.
"Richard W. Brissenden" "A. Douglas MacKenzie"
Chairman President
(416) - 364-1130 (416) - 364-1130
The Vancouver 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.
C:\AEB\Excellon\Press Releases\PR080498.wpd
|
