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TORONTO, ONTARIO--(Marketwire - June 27, 2011) - Excellon Resources Inc. (News - Market indicators) is pleased to announce assays for eight holes, all from the high-grade Pierna Manto discovered in October 2010 on its 100% owned Platosa Mine property in Durango, Mexico. The best hole was LP915, which intersected 2.16 metres (m) of massive sulphides grading 1,598 g/t (46.6 oz/T) Ag, 18.19% Pb, 17.79% Zn. Hole LP914 intersected 553 g/t (16.1 oz/T) Ag, 5.33% Pb, 14.13% Zn over 3.20 m within a 7.01 m interval grading 282 g/t (8.2 oz/T) Ag, 3.09% Pb, 7.59% Zn. The Pierna Manto is now largely closed off although several small portions of the northern fringe remain to be tested. Other areas relatively close to the Platosa mining operations remain to be more thoroughly drilled and the Company expects to continue to add to its manto sulphide resource over time.
In addition to discovering the Pierna Manto, the Company's exploration programs have been successful in outlining new massive sulphides in several other areas close to existing mining infrastructure since late 2009 when it last prepared a Mineral Resource estimate. It has now engaged Roscoe Postle Associates Inc. (RPA), a well known Toronto-based international mining and geological consultancy, to prepare an updated Mineral Resource estimate and supporting Technical Report to National Instrument 43-101 (NI 43-101) standards. RPA and predecessor companies have carried out virtually all of the independent technical studies of the Platosa Property since 2003, prior to the commencement of underground development. This work will begin in early July and we expect it to be completed in the fall of 2011.
The Company has now completed three deep holes, the deepest to 1,100 m vertical, designed to test ZTEM airborne geophysical survey targets. Two other ZTEM holes were abandoned for technical reasons prior to reaching their targets. The completed holes confirmed the expected geology but did not intersect significant mineralization. This is not entirely surprising since the interpretation of ZTEM results is an evolving science, particularly in the Mexican carbonate environment. Company geologists, in consultation with our consulting geophysicist, have just completed a review of the drilling results together with the ZTEM data and we are incorporating newly-developed ZTEM interpretive elements into on-going drill hole planning. Drilling of ZTEM targets continues with our second rig.
"We are very pleased with the continued high-grade Pierna intersections and are actively investigating other areas close to mining infrastructure we believe have high potential for discovering additional high-grade massive sulphides," said John Sullivan, Excellon's Vice-President of Exploration. "We also remain confident that our methodical approach to drilling ZTEM anomalies, while constantly re-interpreting it as new drilling data come to hand, will continue to bring us closer to the discovery of a large-tonnage proximal carbonate replacement deposit (CRD) at Platosa."
The Company and Sundance Minerals have agreed on a preliminary diamond drilling program to test surface sulphide showings, soil geochemical and geophysical CRD targets developed on the Pluton Property, immediately west of Platosa. Project operator Sundance has applied for a drilling permit and we expect that drilling will begin in July. This work will be undertaken by a third drill rig. As previously reported the Company has an option to earn up to a 75% interest in the property.
Assay details for the eight Pierna holes are shown in the Table and their locations are shown on Map 2 below. All intervals are estimated true thicknesses. In addition to these eight holes there have been 12 other holes, including three of the ZTEM holes, drilled at Platosa since the exploration press release dated May 2, 2011. None of the 12 intersected significant values. All five ZTEM holes drilled to date are shown on Map 3.
Excellon's 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, in place.
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 NI 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.
Table: Platosa Assay Results (intervals are estimated true thicknesses)
To view Map 1: Location Map – Platosa Property, please visit the following link: http://media3.marketwire.com/docs/Map_1Location.jpg.
To view Map 2: Platosa Mantos and Recent Drill Hole Locations, please visit the following link: http://media3.marketwire.com/docs/Map_2DrillHolesLocation.jpg.
To view Map 3: ZTEM Drill Hole Locations, please visit the following link: http://media3.marketwire.com/docs/Map_3ZTEMDrillHole.jpg.
Excellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, is committed to building value through production, expansion and discovery. Excellon is producing 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 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.
On behalf of EXCELLON RESOURCES INC.
Peter Crossgrove, Chairman & Chief Executive Officer
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 January 15, 2010 NI 43-101-compliant technical report prepared by Scott Wilson 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.