Excellon ships first Platosa ore (June 17, 2005)

Excellon Resources (EXN-V) has begun shipping crushed ore from the 4C manto on its Platosa property in Mexico’s Durango state.

So far, some 2,960 tonnes of material has been stockpiled on the surface, with about 1,100 tonnes crushed for shipping. Plans call for mining to progress at an average rate of 125 tonnes per day.

Manto 4C is the second largest of Platosa’s known mineralized bodies targeted for initial test mining. The chimney-shaped manto contains indicated resources totalling 19,600 tonnes grading 1,276 grams silver per tonne (37 oz. per ton), 11.1% lead, and 16.4% zinc.

Ore from 4C is being trucked to Industrias Peoles‘ nearby mill under a recently inked letter of intent that calls for Excellon to receive an 80% provisional payment within about a month of delivery. The price is based on assays of the crushed ore; final settlement on the shipments will be made in the second month following delivery.

Excellon says that continuous channel sampling of the sulphide mineralization mined so far indicates that grades will be similar to those encountered during drilling.

Meanwhile, Excellon continues to advance its 4-by-4.5-metre ramp toward manto 5A, Platosa’s largest and highest-grade body with indicated resource of 24,500 tonnes running 3,912 grams silver (114 oz. per ton), 22.3% lead, and 6.5% zinc. The company expects to reach 5A in early July, at which time it too will be mined at an average of 125 tonnes per day.

Overall, indicated resources at Platosa amount to 63,400 tonnes grading 2,346 grams silver (68.5 oz. per ton), plus 15.2% lead and 11.9% zinc. There is also an inferred resource of 2,100 tonnes grading 1,433 grams silver per tonne (41.9 oz. per ton), 18.2% lead and 14.9% zinc. The resource is contained in six mantos lined up in a northeasterly direction, parallel to the Zorra-Platosa trend.

Earlier this year, surface drilling turned up two new zones at Platosa. Manto NE-1 is situated about 450 metres north of the structural trend that hosts the project’s other manto-style sulphide mineralization. Limited drilling is highlighted by a 0.52-metre interval of sphalerite-rich mineralization averaging 27% zinc and 1% lead, plus 19 grams silver per tonne.

Drilling on manto N-1, 85 metres northwest of Platosa’s known resource, yielded up to 2,082 grams silver (60.7 oz.), 17.1% zinc, and 22% lead over 5.2 metres.

Both mantos remain open in several directions.

In related news, Excellon has arranged a short-term loan for US$500,000 to help cover the cost of test mining until it realizes some cash flow from ore shipments. The loan bears interest at 20% and is repayable in six equal monthly instalments, beginning in July. Under the deal, lender Ocean Partners Holdings was also issued 1.1 million one-year warrants exercisable at 20 apiece.