Platosa resource estimate tabled

Partners Excellon Resources (EXN-V) and Apex Silver Mines (SIL-X) have tabled a mineral resource estimate for the Platosa property, near Bermejillo, Mexico.

Completed by Roscoe Postle Associates (RPA), the estimate pegs Platosa’s indicated mineral resources at 63,400 tonnes running 2,738 grams silver per tonne (2,346 grams cut grade), 15.2% lead and 11.9% zinc. Another 2,100 tonnes of inferred material runs 1,433 grams silver, 18.2% lead and 14.9% zinc.

The estimate is based on 194 composites samples from 33 drill holes.

Based on metal prices of: US$4.50 per silver ounce; US20 per lb. of lead; and US34 for each lb. of zinc, Excellon figures the indicated resources has an in-situ value of about US$31.4 million.

Platosa is a carbonate replacement deposit comprising a series of pods and lenses of massive and semi-massive to disseminated silver-lead-zinc sulphides. The irregularly shaped deposit rests about 120 metres below surface. Portions of the deposit reach up to 180 metres in length, 45 metres in width and up to 20 metres in thickness. It remains open in all directions.

Based on the results, RPA also has a scoping study aimed at examining the economics of proposed underground development underway. Work includes metallurgical testing and the commencement of the environmental permitting.

Revenue from underground test mining is expected to be enough to cover the costs of underground exploration, test mining and extensive surface exploration.

The balance of the ongoing 6,000-metre drill program will test deeper targets, large step-outs from the existing resource and other known targets, particularly to the northwest and southeast.

The Platosa property is within 1.5 km of road, rail and power lines and is about 40 km northwest of the city of Torreon, which is home to Mexico’s largest silver-lead-zinc smelter and refining complex.

The property is held by the Platosa-Saltillera joint venture, in which Excellon has a 34% stake and Apex 49%.

Earlier this spring, Toronto-based Destorbelle Mines (YDB-V) inked a deal to pick up a third of Excellon’s eventual stake, or 17% of the two properties, for US$1.3 million. However, Apex retains the right to buy back 2% of the joint venture properties from Excellon for a sum equivalent to 2% of the project’s anticipated value (to a maximum of US$1 million) based on a preliminary feasibility study. Should Apex decide to exercise its option, Destorbelle’s stake would fall to 16.3%.

To maintain its interest, Destorbelle must cover a third of certain future exploration expenses on the properties.

Also, within 60 days of the completion of the current drill program, Excellon may, at its option, require Destorbelle to complete a business combination, under which the two will amalgamate in proportion to their respective interests in the joint venture. The amalgamation is subject to regulatory and shareholder approval.