Excellon announces initial drill results and exercise of its option on Beschefer Project, Quebec
TORONTO, March 5, 2012 /CNW/ - Excellon Resources Inc. (TSX:EXN) ("Excellon" or "the Company") Mexico's highest grade silver producer, is pleased to report it has fully exercised its option to acquire the "Beschefer" property, located in northwestern Quebec, as well as initial drill results from its 2012 winter drill campaign. Drilling highlights on the project include the interception of 4.54 grams per tonne (gpt) gold over 7.80 metres (m) including 9.16 gpt gold over 1.35m and 27.3 gpt gold over 0.30m in drill hole BE12-006.
Diamond drilling at the Company's Beschefer Project, located 12 km east of the past-producing Selbaie Mine and 60km north-east of the Casa Berardi Mine, commenced in January. As of March 1, 2012, 5,284m in 17 holes have been drilled of a planned 8,000m program at Beschefer. The Company completed a 1,520m drill program in March 2011. Results of that program included the interception of 3.80 gpt gold over 4.35m including 13.85 gpt gold over 0.30m in hole BE11-001 and 12.4gpt gold over 3.78m in hole BE11-003 including 63.5 gpt gold over 0.43m.
Drilling in this program is focused on expansion of the previously discovered "B-14" Zone, as well as exploration targets elsewhere on the property. Thus far in the program, geological and analytical results are consistent with those encountered in the Company's 2011 drill program and with historical results on the property.
Completed assay results for the Company's 2012 drill holes are summarized in the following table:
2012 Drill Program ResultsSummary:
|DDH No||From||To||Au (gpt)||Intercept Length (m)|
|BE12-001||No significant intercepts|
Note: all gold grades are uncut; intercept lengths may not be representative of true widths
Excellon President Jeremy Wyeth comments, "Excellon continues to be pleased with the geological and operational progress at its Beschefer Project and we optimistically look forward to the continued exploration of the B-14 Zone. Exploration at both of our Canadian properties provides exploration upside to our shareholders and will reposition the Company as a precious metals growth company."
The Company continues to find that the B-14 Zone persists as a moderately dipping shear zone marked by increased sericite and carbonate alteration, quartz veining, and pyrite hosted by mylonite. In late February, Hole-to-Hole Induced Polarization ("IP") surveying was also performed on select deeper holes within the "B-14" Zone, in order to assist in delineation of the zone.
Gold mineralization was discovered in the B-14 Zone in 1995 by Billiton Canada Inc. and since that time and prior to the Company's involvement, has seen limited exploration. Gold mineralization in the B-14 Zone is typical of other shear zone hosted mesothermal gold deposits in that it is hosted within mylonite, highly sheared and altered rock, which also contains increased quartz veining and pyrite.
Completion of Option on Beschefer:
On February 15, 2012, Excellon exercised its option to acquire 100% of the Beschefer property by completing an issuance of shares to property owners in February, who have retained NSR interests on any future commercial mineral production from the property. To date, no mineral resource estimate has been completed for the property, or the B-14 Zone, the only known significant gold mineralized zone on the property.
Drilling, Assaying and QA/QC
The Company's exploration programs are subject to QA/QC and security programs, which conform to industry standard best practices and are in compliance with NI 43-101.
The current phase of diamond drilling on the Beschefer Project is being conducted by N.P.L.H. Drilling of Timmins, Ontario. Analytical work is being performed by ALS Chemex Ltd., an ISO 9001-200 registered laboratory with internal QA/QC procedures. Excellon utilizes, as part of its QA/QC program, the insertion of standard reference materials and blank samples representing approximately 5% of the total sample population. Drill core is sampled according to standardized technical procedures, which include the core being sawn in half and half of the core being retained, while the other half is sampled for gold analysis via Fire Assay - Atomic Absorption Spectroscopy finish using a 50 gram assay aliquot. Intervals where visible gold has been identified are analyzed via gravimetric or screened metallic procedures. Samples are securely packed for shipment utilizing security seals noted on Chain of Custody documents, which are confirmed as intact upon receipt at ALS's sample receiving facility.
Excellon's Canadian exploration programs are conducted under the supervision of its Vice President of Exploration for Canada, Ms. Heather Miree, P. Geo. Ms.Miree is a Qualified Person as defined by NI43-101, and has prepared or supervised the preparation of the scientific or technical information in this press release and has verified the data contained herein.
Ms. Miree is an economic geologist with over 25 years of experience in the mineral industry. Ms. Miree has held senior geological and supervisory roles with several junior and mid-sized mining companies, in the areas of exploration and operations. Ms. Miree is not independent of Excellon as she is an officer of the Company.
Excellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, and Ontario and Quebec, Canada, is committed to building value through production, expansion and discovery. Excellon is Mexico's highest-grade silver producer; it produces 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 CRD/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. Excellon also has ongoing gold exploration programs on the DeSantis Project, located near Timmins, Ontario and the Beschefer Project, located in northwestern Quebec. Both these projects host gold mineralization and significant potential for the discovery of more. Excellon will use cash from operations to fund future exploration activities.
On behalf of
EXCELLON RESOURCES INC.
President and Chief Executive Officer
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 reviewthese materials, including the technical reports filed with respect to the Company's mineral properties, and particularly the November 22, 2011 NI 43-101- compliant technical report prepared by Roscoe PostleAssociates 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.