TORONTO, March 26, 2014 /CNW/ - Excellon Resources Inc. (TSX:EXN; OTC:EXLLF) ("Excellon" or
the "Company"), Mexico's highest grade silver producer, is pleased to report an updated mineral resource estimate (as at
December 31, 2013) on its 100%-owned Platosa Mine in Durango State,
Resource Estimate Highlights
Measured plus indicated ("M+I") mineral resources total 488,000 tonnes
("t") grading 777 g/t silver, 8.42% lead, 10.15% zinc or an AgEq grade
of 1,277 g/t
M+I resources total 12.1 million silver ounces or 20 million AgEq ounces
Resources estimated using a conservative US$20/oz silver price, with
less than 2% variation resulting from a US$2/oz change in silver price
"La Platosa is one of the world's highest grade silver deposits with
currently identified measured and indicated resources containing 20
million silver equivalent ounces, sufficient to maintain present rates
of production for close to seven years," stated Brendan Cahill,
President and Chief Executive Officer. "The resource demonstrates
exceptional resilience to changes in the silver price, a key attribute
during this period of lower prices. Our exploration efforts since the
last resource update in 2011 have focused on discovering the large
tonnage source of the Platosa mine, but the exploration horizon for new
high-grade, near-surface mantos is wide open to the north, east and
southeast of our current mining operation."
Platosa Mine - Summary of December 31, 2013 Mineral Resource Estimate
A summary of the resource estimate prepared by Roscoe Postle Associates
Inc. ("RPA"), independent geological and mining consultants of Toronto,
Ontario is set out below:
M + I
CIM definitions were followed for the classification of Mineral
Mineral Resources are estimated at an incremental NSR cut-off value of
US$189 per tonne.
Net smelter return metal price assumptions: US$20.00/oz Ag, US$1.00/lb
Pb, US$1.00/lb Zn.
Metal recovery assumptions: Ag 94%, Pb 85%, Zn 84%.
The silver equivalent (AgEq) is estimated from metallurgical recoveries,
metal price assumptions, and smelter terms, which include payable
factors, treatment charges, penalties, and refining charges.
The estimate is of Mineral Resources only and, because these do not
constitute Mineral Reserves, they do not have any demonstrated economic
Mineral resource estimate prepared by David Ross, P.Geo., of Roscoe
Postle Associates Inc., independent geological and mining consultants
of Toronto, Ontario. Prepared as at December 31, 2013.
Totals may not add or multiply accurately due to rounding.
M+I tonnage decreased by 153,000 t since the previous estimate prepared
as at July 31, 2011. Similarly, inferred tonnage decreased by 66,000
t. The decrease in resource tonnage is primarily due to mine depletion,
which totaled 167,217 t since the July 2011 estimate. Resource tonnage
was further reduced as underground mapping revealed waste in areas that
were previously interpreted as resources. Mining depletion was partly
offset by the discovery of a new zone in the Manto 6A/6B area and
further tonnage was added on the fringes of other mantos. Average
grades in the M+I category have declined slightly due to mining of
exceptionally high-grade areas, primarily in the Guadalupe Manto, since
the July 2011 estimate.
Following preparation of the 2011 mineral resource estimate, which
estimated M+I resources sufficient for over eight years of production,
the Company focused exploration on the large-tonnage proximal source of
the carbonate replacement deposit ("CRD") system that is responsible
for the high-grade Platosa mantos. This focus resulted in the Rincon
del Caido skarn-sulphide discovery in June 2012 in hole EX12LP-1019
(see press release dated July 9, 2012), which intersected 55.46 m
grading 132 g/t Ag, 3.13% Pb, 1.74% Zn and 0.075 g/t Au and was
confirmed by several other intersections between mid-2012 and early
When drilling resumes later this year, Excellon expects to target
further high-grade manto targets, as well as periodically drilling on
CRD-Source targets to follow up on the results from Rincon del
Caido. The known high-grade manto mineralization at Platosa is hosted
in a distinctive fragmental limestone unit. Large portions of the area
within two to three kilometres of the mantos have only been sparsely
drilled and all holes have intersected the fragmental unit,
occasionally encountering sulphide mineralization. The Company's
geologists have revisited drill hole and other geotechnical data from
these areas to plan the next drill program.
Significant Estimation Parameters
Mineral resources are reported at a net smelter return ("NSR") cut-off
value of US$189/t. Assumptions used for the NSR calculation include
metal prices of US$20.00/oz Ag, US$1.00/lb Pb, and US$1.00/lb Zn.
Block Ag, Pb and Zn grades were interpolated and constrained within the
wireframe models using the Inverse Distance Squared method. The Platosa
drill hole database includes 1,307 vertical and inclined diamond drill
holes totaling 336,128 metres of core. Most holes within the Mineral
Resource area are aligned along NE-SW oriented sections spaced 15
metres apart. Average drill hole spacing is approximately 15 to 20
metres. A total of 985 silver, lead and zinc assays were used in the
Mineral Resource estimate. Block tonnage was estimated from volume
using a bulk density formula that was applied to the interpolated lead
and zinc grades. The bulk density regression formula was derived from
285 bulk density measurements made on mineralized drill core.
A detailed description of the estimate and other pertinent geotechnical
information relating to the Platosa project is included in the National
Instrument 43-101 ("NI 43-101") technical report dated March 25, 2014
prepared for the Company by RPA, which be filed on SEDAR shortly.
Platosa drill core samples are prepared and assayed by SGS Minerals
Services in Durango, Mexico. The lab is accredited to ISO/IEC 17025.
Excellon has a comprehensive QAQC program, supervised by an independent
John Sullivan, P.Geo., Vice-President of Exploration, is responsible for
the Company's exploration programs and has supervised the preparation
of the technical information, which formed the basis for the updated
Mineral Resource disclosed in this press release. He has acted as the
Qualified Person, as defined in NI 43-101, for this disclosure.
Mr. David Ross, P.Geo., Director, Resource Estimation and Principal
Geologist of RPA, and an independent Qualified Person, prepared the
Mineral Resource estimate.
Excellon's 100%-owned and royalty-free La Platosa Mine in Durango is
Mexico's highest grade silver mine, with lead and zinc by-products
making it one of the lowest cash cost silver mines in the country. The
Company is positioning itself to capitalize on undervalued projects by
focusing on increasing La Platosa's profitable silver production and
near-term mineable resources.
Additional details on the La Platosa Mine and Excellon's exploration
properties are available at www.excellonresources.com.
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. 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.
SOURCE: Excellon Resources Inc.
For further information:
Excellon Resources Inc.
Brendan Cahill, President & CEO or
John Sullivan, Vice President Exploration