TORONTO, Sept. 17, 2020 /CNW/ - Excellon Resources
Inc. (TSX: EXN) (EXN.WT: EXLLD) (OTC: EXLLD) (FRA: E4X2)
("Excellon" or the "Company") is pleased
to provide an updated Mineral Resource Estimate ("MRE") for
the Calvario and Lechuzas Zones on the Evolución Project in
Zacatecas, Mexico as at
July 31, 2020.
2020 Evolución MRE Highlights
- Updated MRE incorporates 17,120 metres of additional surface
drilling completed in the resource area from June 2018 to December 31,
2019
- Indicated resource of 6,407,000 tonnes at 170 g/t silver
equivalent ("AgEq") representing 35,091,000 AgEq ounces
- Inferred resource of 14,960,000 tonnes at 135 g/t AgEq
representing 64,813,000 AgEq ounces
- Expansion drilling being planned to test the strike
extension of the mineralized zones and follow up on parallel
structures, where grab samples taken during detailed mapping in
2020 returned values of up to 2.30 g/t Au, 203 g/t Ag and 10.4%
Pb
"We discovered the Lechuzas zone adjacent to our Miguel Auza mill in late 2018 and identified a
sizeable mineral resource that, when combined with the historic
Calvario Vein, is similar to other
deposits currently producing in the region," stated Ben Pullinger, SVP Geology. "This MRE represents
a sizeable addition to Excellon's overall metal inventory and a
foundation to further advance the project, as both Lechuzas and
Calvario are open for extension along strike and at depth."
Resource Summary for Evolución Project
The MRE will be included in an updated technical report prepared by SRK Consulting (Canada) Inc. ("SRK")
under National Instrument 43-101 ("NI 43-101"), which will be
published on SEDAR (www.sedar.com) in the coming weeks.
Mineral Resource Statement, Evolución Project,
Zacatecas, Mexico
|
Grade
|
Contained
Metal
|
Tonnes
|
Ag
|
Au
|
Pb
|
Zn
|
AgEq
|
Ag
|
Au
|
Pb
|
Zn
|
AgEq
|
Category
|
Zone
|
(000′
t)
|
(g/t)
|
(g/t)
|
(%)
|
(%)
|
(g/t)
|
(000′
oz)
|
(000′
lb)
|
(000′
lb)
|
(000′
lb)
|
(000′
oz)
|
Indicated
|
Calvario
|
6,407
|
64
|
0.09
|
1.00
|
1.14
|
170
|
13,154
|
19
|
140,741
|
161,548
|
35,091
|
Total
Indicated
|
6,407
|
64
|
0.09
|
1.00
|
1.14
|
170
|
13,154
|
19
|
140,741
|
161,548
|
35,091
|
Inferred
|
Calvario
|
5,626
|
53
|
0.09
|
0.82
|
1.08
|
149
|
9,570
|
16
|
102,223
|
134,447
|
26,902
|
Lechuzas
|
9,335
|
30
|
0.11
|
0.71
|
1.18
|
126
|
8,953
|
33
|
145,235
|
243,300
|
37,911
|
Total
Inferred
|
14,960
|
39
|
0.10
|
0.75
|
1.15
|
135
|
18,524
|
49
|
247,459
|
377,747
|
64,813
|
Notes:
|
|
1.
|
Mineral Resources are
estimated pursuant to NI 43-101 with an effective date of August
31, 2020
|
2.
|
Mineral Resources are
reported at a cut-off grade of 90 g/t AgEq. Cut-off grades are
based on a silver price of US$17 per troy ounce and a silver
recovery of 76%; a gold price of US$1,550 per troy ounce and
recovery of 20%; a lead price of US$0.90 per pound and recovery of
90%; and a zinc price of US$1.15 per pound and recovery of
88%
|
3.
|
Mineral Resources
that are not Mineral Reserves do not necessarily demonstrate
economic viability. All figures have been rounded to reflect the
relative accuracy of the estimates. Composites have been capped
where appropriate
|
4.
|
The mineral resources
were estimated in conformity with the widely 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
|
5.
|
The construction of
the Mineral Resource model was a collaborative effort between
Excellon and SRK personnel. Dr. Aleksandr Mitrofanov, P.Geo.
(APGO#2824) is responsible for resource wireframing, geostatistical
analysis, grade estimation and classification with senior review
provided by Mr. Glen Cole, PGeo (APGO#1416)
|
The Lechuzas Zone was modelled in conjunction with a remodeling
of the historical Calvario vein system. The evaluation of mineral
resources for these zones on the Evolución Project involved the
following:
- Validation and verification of the Excellon drill hole and
analytical database and QA/QC performance;
- Construction of explicit wireframe domains for mineralization
using geological indices and structural trends;
- Definition of resource domains;
- Data conditioning (compositing and capping) for geostatistical
analysis and variography and determination of specific
gravity;
- Definition and interpolation of a 3D block model;
- Validation, classification and tabulation;
- Assessment of "reasonable prospects for eventual economic
extraction" and selection of cut-off grade and grade sensitivity
analysis; and
- Preparation of the MRE.
This model incorporates data from 239 drill holes (68,361
metres) completed by previous operators at Calvario and 34 diamond
holes (14,509 metres) completed by Excellon from 2018 to 2020 on
the Lechuzas zone. Additional work completed and integrated into
the model included structural studies completed in 2018, oriented
core data, petrographic studies, re-logging and re-assaying of
historical mineralized intersections and a re-interpretation of the
geology and mineralization of the studied area.
Mineral resource modeling of the Evolución Project incorporates
lithological and structural geology modeling and grade
interpolation. SRK used the available data to create a geological
model delimiting the different mineralized domains in Leapfrog
Geo™. The model comprises a total of twelve high-grade veins (eight
at Calvario and four at Lechuzas), and three low-grade haloes for
each zone.
The high-grade vein domains were generated using a combination
of geological descriptions, where they were available, and AgEq
values. The high-grade domains were constrained based on economic
composites greater than 10 g/t AgEq threshold and a maximum waste
inclusion of 1 metre. Low-grade domains were modelled based on
economic composites of 2 g/t AgEq threshold and a maximum of 3
metres waste inclusion, and further constrained using interval
selections based on structural trends. The AgEq calculations are
based on a silver price of US$17.00
per troy ounce (t oz) and a silver recovery of 76%; a gold price of
US$1,550 per t oz and a gold recovery
of 20%; a lead price of US$0.90 per
lb and a lead recovery of 90%; and a zinc price of US$1.15 per lb and a zinc recovery of 88%.
Recovery values are based upon the total overall recovery values
documented by Roscoe Postle Associates Inc. (2008), determined by
the metallurgical testwork completed by Silver Eagle Mines Inc.
Approximately 12% of the tonnage within the MRE (26% of the
indicated tonnage and 6% of the inferred tonnage) is located within
the La Antigua concession (part of the Evolución Project), which is
the subject of litigation between a subsidiary of Excellon and a
plaintiff. The initial decision in respect of this litigation does
not affect Excellon's contractual rights to this concession.
The MRE was prepared in accordance with the Canadian Institute
of Mining, Metallurgy and Petroleum's (CIM) 'Mineral Resources
and Mineral Reserves Best Practices' guidelines (November 2019) and is classified per the CIM
'Definition Standards for Mineral Resources and Mineral
Reserves' (May 2014).
The Evolución property covers 45,000 hectares (450
km2) and 35 kilometres of strike in one of the
world's premier silver mining districts, known as the Fresnillo trend. The Lechuzas and Calvario
Zones are hosted within the Caracol Formation, which hosts the most
significant deposits on the Fresnillo trend. Precious and base metal
mineralization is associated with structures featuring carbonate
and quartz veining that crosscut the host rocks. Pyrite,
sphalerite, and galena are the most commonly observed sulphide
minerals. The property includes a conventional grinding and
flotation mineral processing facility, through which the Company
currently processes ore from its Platosa Mine. The mineral
processing facility currently has nameplate capacity of
approximately 800 tonnes per day ("tpd"), with a 650 tpd ball mill
in operation and a second, 150 tpd ball mill on standby, with
opportunities available for further expansion.
Ongoing Exploration at Evolución
Detailed mapping and surface sampling are underway on the
Evolución Project. Numerous samples with anomalous geochemical
signatures have been identified in the target area; these
are thought to be the surface expressions of
epithermal alteration and associated mineralization. The program
will be used to aid in structural modeling and targeting for
future drilling.
Qualified Person
Mr. Ben Pullinger, P.Geo., Senior
Vice President Geology, has acted as the Qualified Person, as
defined in NI 43101, with respect to the disclosure of the
scientific and technical information contained in this press
release.
Update on Trading Symbols on the OTC Pink and Frankfurt
Exchanges
Further to the Company's press release on September 10, 2020 announcing the effective date
of the consolidation of the Company's common shares on a
one-for-five basis, the following adjustments were made to trading
symbols on the OTC Pink and Frankfurt Exchanges:
- On the OTC Pink, Excellon's symbol was changed from "EXLLF" to
"EXLLD". The new symbol will remain in effect for a period of 20
trading days after the consolidation was effected or until the
Company's common shares start trading on the NYSE American, LLC
exchange (the "NYSE American"), whichever comes first. Upon listing
on the NYSE American, the common shares will trade under the symbol
"EXN" and trading on the OTC Pink exchange will cease;
- On the Frankfurt Stock Exchange, Excellon's symbol was changed
from "E4X1" to "E4X2".
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 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, including the
technical reports filed with respect to the Company's mineral
properties, and particularly the September
7, 2018 NI 43-101 technical report prepared by SRK
Consulting (Canada) 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.
SOURCE Excellon Resources Inc.