Excellon Temporarily Suspends Work at Platosa Mine
TORONTO, ONTARIO–(Marketwire – Oct. 6, 2008) – Excellon Resources Inc. (TSX:EXN) today announces that it has temporarily suspended production at the Platosa mine while it seals an unexpected water bearing fault that was intersected by normal mine development on October 4. All appropriate precautionary steps to prevent the resulting water inflow were taken and there were no indications of this water bearing fault prior to the event. The water inflow from this fault exceeded the mine’s pumping capacity and as a result water has risen to the natural level of the water table in the mine. No employees were injured and all mobile equipment was brought to surface. Drilling and grouting operations to seal the fault have begun and on completion dewatering of the mine will resume to restore production.
Excellon was already in the process of reviewing the mine hydrology and dewatering plans and has engaged industry recognized consulting hydrologists to assist in the review of the Platosa mine hydrology and dewatering plans.
“Although the Platosa Mine is currently not very deep, we are working below the water table and have to deal with some water bearing faults and unfortunately we had no indication of this particular fault. However, we are responding to this situation in a timely and appropriate manner and are in the process of strengthening our understanding of the hydrology and mine dewatering plan to prevent this from interfering with future production,” said Peter A. Crossgrove, Excellon’s chairman and acting CEO. “Most importantly, no employees were injured and we are focusing on resuming normal operations as soon as possible.”
Excellon, a mineral resource company operating in Durango State, Mexico, is committed to building value through production, expansion and discovery. The Company is producing silver, lead and zinc from high-grade manto deposits on its Platosa Property, strategically located in the middle of the Mexican silver belt. In fiscal and calendar 2009, Excellon’s focus is on expanding its operating capacity, with the building of a mill at site and increasing its Mineral Resources through an aggressive exploration program. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system.
On behalf of EXCELLON RESOURCES INC.
Peter A. Crossgrove, Chairman
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, the proposed construction of a mill, 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 (particularly silver), 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 April 14, 2008 NI 43-101- compliant technical report prepared by Scott Wilson Roscoe Postle Associates 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.
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