TORONTO, May 13, 2021 /CNW/ - Excellon Resources
Inc. (TSX: EXN) (TSX: EXN.WT) (NYSE: EXN) (FRA: E4X2)
("Excellon" or the "Company") is pleased to provide an
update of the Mineral Resource Estimate for the Platosa Mine and a
summary of the Company's consolidated mineral resources across all
of its projects.
Highlights
- Platosa Mineral Resource Estimate updated to include 187
exploration drill holes from surface and underground for
approximately 21,400 metres of drilling up to February 28, 2021, with underground drilling
ongoing to define additional mineralization
- Updated Platosa technical report to be published during Q2
2021
- Company-wide consolidated mineral resource growth during
2020 through resource expansion and acquisition
"Our update of the Platosa Mineral Resources Estimate is a
snapshot in time amid the opportunities we see to continue growing
the mineral resource through the ongoing underground and
surface drilling programs," stated Brendan Cahill, President and Chief Executive
Officer. "Importantly, recent drilling of the Guadalupe North
Manto, including 6.5 metres grading 1,293 g/t AgEq, indicates the
potential to revitalize and define additional mineralization in
historically-mined areas. Earlier periods of operation were
constrained by water management, higher costs and lower
productivity and silver prices. We are now reassessing a number of
these areas that are now entirely free of water and may host
mineralization that is now accessible."
"On a consolidated level, we multiplied our metal resource
inventory during 2020 through the discovery and definition of a
mineral resource at Evolución in Zacatecas and the acquisition of the
Kilgore and Oakley projects in Idaho."
Mineral Resource Statement*, Platosa Mine, Mexico, SRK Consulting (Canada) Inc., March 31,
2021
Grade
|
Contained
Metal
|
Category
|
Quantity
|
Silver
|
Lead
|
Zinc
|
Silver
|
Lead
|
Zinc
|
|
('000
t)
|
(g/t)
|
(%)
|
(%)
|
('000
oz)
|
('000
lbs)
|
('000
lbs)
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
317
|
485
|
5.3
|
5.5
|
4,948
|
36,797
|
38,781
|
Total
|
317
|
485
|
5.3
|
5.5
|
4,948
|
36,797
|
38,781
|
Inferred
|
42
|
749
|
4.3
|
5.4
|
1,007
|
4,000
|
5,002
|
*
|
Mineral resources are
not mineral reserves and have not demonstrated economic viability.
All figures are rounded to reflect the relative accuracy of the
estimates. Composites were capped where appropriate. Mineral
resources are reported at a silver equivalent cut-off value of 275
grams per tonne, considering metal prices of US$24.00 per ounce of
silver, US$0.86 per pound of lead, US$1.10 per pound of zinc, and
assuming metal recovery of 91% for silver, 80% for lead and 80% for
zinc.
|
Mineral resources at Platosa are estimated based on drilling up
to February 28, 2021. The Company is
currently continuing its expansion and infill drilling program from
dedicated underground infrastructure with results from this program
to be included in subsequent resource updates. This program has
been progressing well since Q3 2020 after facing challenges in 2019
and 2020 due to management changes, accessibility of drilling
platforms and COVID-19 (in H1 2020).
Since the last resource update as at March 31, 2018, 187 exploration holes from
surface and underground have been completed totaling approximately
21,400 meters. The mineral resource estimation update included a
geological modeling audit, grade estimation, sensitivity analyses,
and mineral resource classification and was completed by
Joycelyn Smith, PGeo (APGO#2963),
under the supervision of Mr. Glen
Cole, PGeo (APGO#1416), an appropriate independent Qualified
Person as this term is defined in National Instrument 43-101. The
overall process was reviewed by Dr. Oy
Leuangthong, PEng (PEO#90563867). The effective date of the
Mineral Resource Statement is March 31,
2021.
The Platosa mineral resource model update will be supported by a
technical report prepared by SRK Consulting (Canada) Inc. ("SRK"), which will be available
on SEDAR (www.sedar.com) within 45 days of this news release.
Consolidated Mineral Resources
During 2020, the Company significantly increased consolidated
Mineral Resources through the generation of an updated Mineral
Resource Estimate on the Evolución Project in Zacatecas and the acquisition of the
Kilgore and Oakley Projects in
Idaho. The Company's consolidated
Mineral Resources are summarized as follows as at March 31, 2021 and have been estimated in
conformity with generally accepted CIM Estimation of Mineral
Resource and Mineral Reserves Best Practices Guidelines
(November 2019) and are reported in
accordance with the Canadian Securities Administrators' National
Instrument 43-101.
|
|
Grade
|
Contained Metal
('000s)
|
Project
|
Quantity
|
Ag
|
Au
|
Pb
|
Zn
|
AgEq
|
Ag
|
Au
|
Pb
|
Zn
|
AgEq
|
('000
t)
|
(g/t)
|
(g/t)
|
(%)
|
(%)
|
(g/t)
|
(oz)
|
(oz)
|
(lbs)
|
(lbs)
|
(oz)
|
Silver-Lead-Zinc Indicated Mineral
Resources
|
Platosa1
|
317
|
485
|
-
|
5.3
|
5.5
|
751
|
4,948
|
-
|
36,797
|
38,781
|
7,659
|
Evolución2
|
6,407
|
64
|
0.10
|
1.0
|
1.1
|
170
|
13,154
|
19
|
140,741
|
161,548
|
35,091
|
Total
Indicated
|
6,724
|
84
|
0.10
|
1.2
|
1.3
|
197
|
18,102
|
19
|
177,538
|
200,329
|
42,750
|
Silver-Lead-Zinc Inferred Mineral
Resources
|
Platosa1
|
42
|
749
|
-
|
4.3
|
5.4
|
991
|
1,007
|
-
|
4,000
|
5,002
|
1,338
|
Evolución2
|
14,960
|
39
|
0.10
|
0.8
|
1.2
|
135
|
18,524
|
49
|
247,459
|
377,747
|
64,813
|
Total
Inferred
|
15,002
|
41
|
-
|
0.8
|
1.2
|
137
|
19,531
|
49
|
251,459
|
382,749
|
66,151
|
Gold Indicated
Mineral Resources
|
Kilgore3
|
44,556
|
-
|
0.58
|
-
|
-
|
-
|
-
|
825
|
-
|
-
|
-
|
Total
Indicated
|
44,556
|
-
|
0.58
|
-
|
-
|
-
|
-
|
825
|
-
|
-
|
-
|
Gold Inferred
Mineral Resources
|
Kilgore3
|
9,399
|
-
|
0.45
|
-
|
-
|
-
|
-
|
136
|
-
|
-
|
-
|
Oakley4
|
9,972
|
-
|
0.51
|
-
|
-
|
-
|
-
|
163
|
-
|
-
|
-
|
Total
Inferred
|
19,371
|
-
|
0.48
|
-
|
-
|
-
|
-
|
299
|
-
|
-
|
-
|
(1)
|
Estimated at a
cut-off grade of 275 g/t AgEq and silver, lead and zinc prices of
$24.00, $0.86 and $1.10, and assuming metal recoveries of 91% for
silver, 80% for lead and 80% zinc. AgEq calculated using the
following formula, AgEq = Ag(g/t) + 21.60*Pb(%) +
27.63*Zn(%).
|
(2)
|
Estimated at a
cut-off grade of 90 g/t AgEq and silver, gold, lead and zinc prices
of $17.00/oz, $1,550/oz, $0.90/lb and $1.15/lb, and assuming metal
recoveries of 76% for silver, 20% for gold, 90% for lead and 88%
zinc. AgEq calculated using the following formula, AgEq =
Ag(g/t) + 42.99*Pb(%) + 23.99*Zn(%).
|
(3)
|
Estimated at a
cut-off grade of 0.21 g/t Au, gold price of $1300/oz, and assuming
metal recoveries of 80%.
|
(4)
|
Estimated at a
cut-off grade of 0.31 g/t Au, gold price of $1200/oz, and assuming
metal recoveries of 70%.
|
A complete summary of mineral resources is provided in the
Company's Annual Information Form, which is available at
www.excellonresources.com and under the Company's profile on
SEDAR.
Exploration Update
Exploration at Platosa is ongoing, with one drill rig testing
the 10-20 target in the Platosa Corridor southeast of the Mine and
one drill rig testing targets at Jaboncillo, 11 kilometres northwest of the
Mine. Underground drilling is ongoing, with two drill rigs
continuing to further expand and delineate mineralization within
the mine area. Drilling is expected to continue throughout the
year.
Qualified Person
Mr. Ben Pullinger, PGeo., Senior
Vice President Geology & Corporate Development, has acted as
the Qualified Person, as defined in NI 43-101, with respect to the
disclosure of the scientific and technical information contained in
this press release.
About Excellon
Excellon's vision is to create wealth by realizing strategic
opportunities through discipline and innovation for the benefit of
our employees, communities and shareholders. The Company is
advancing a precious metals growth pipeline that includes: Platosa,
Mexico's highest-grade silver mine
since production commenced in 2005; Kilgore, a high quality gold development
project in Idaho with strong
economics and significant growth and discovery potential; and an
option on Silver City, a high-grade epithermal silver district in
Saxony, Germany with 750 years of
mining history and no modern exploration. The Company also aims to
continue capitalizing on current market conditions by acquiring
undervalued projects.
Additional details on Excellon's properties are available at
www.excellonresources.com.
Forward-Looking Statements
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 mineral resources estimates, 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, 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. 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.
Cautionary Note to U.S. Investors: The
terms "mineral resource," "measured mineral resource," "indicated
mineral resource" and "inferred mineral resource," as used on
Excellon's website and in its press releases are Canadian mining
terms that are defined in accordance with National Instrument
43-101 – Standards of Disclosure for Mineral Projects ("NI
43-101"). These Canadian terms are not defined terms under United
States Securities and Exchange Commission ("SEC") Industry Guide 7
and are normally not permitted to be used in reports and
registration statements filed with the SEC by U.S. registered
companies. The SEC permits U.S. companies, in their filings
with the SEC, to disclose only those mineral deposits that a
company can economically and legally extract or
produce. Accordingly, note that information describing
the Company's "mineral resources" is not directly comparable to
information made public by U.S. companies subject to reporting
requirements under U.S. securities laws. U.S. investors are urged
to consider closely the disclosure in the Company's Form 40-F which
may be secured from the Company, or online
at http://www.sec.gov/edgar.shtml.
SOURCE Excellon Resources Inc.