Partners table Platosa resource estimate

Excellon Resources (EXN-V) and Apex Silver Mines (SIL-X) have tabled a mineral resource estimate for their jointly held 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 oz. silver, US20 per lb. lead and US34 per lb. zinc, Excellon figures the indicated resources has an in situ value of 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 has commissioned a scoping study aimed at examining the economics of underground development. Work includes metallurgical testing and 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 stepouts 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 refinery.

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 would amalgamate in proportion to their respective interests in the joint venture. Any amalgamation is subject to regulatory and shareholder approval.