Excellon Resources (NYSE/TSX: EXN) is pleased to announce the commencement of a 2,800 metre diamond drilling program at the Oakley Project, Idaho in collaboration with Centerra Inc. (TSX: CG) (U.S.A), which has the option to earn up to a 70% interest in the project by, among other things, spending up to US$7 million in exploration expenditures on the project prior to May 2026. Centerra is the operator of the project and Excellon is the manager under the terms of the option agreement between the parties, with all expenditures currently being funded by Centerra.
"Oakley is a low sulphidation, epithermal gold project with the potential for Carlin-style mineralization at depth, a similar setting to Liberty Gold’s Black Pine Project, 70 kilometres due east,” stated Ben Pullinger, SVP Geology &Corporate Development. “Over the past year, we have been advancing the project with Centerra, collaboratively developing high quality targets as they earn into their option on the project. The current drill program promises to test a number of these targets over the coming months and complements our strong 2021exploration pipeline."
The Cold Creek claims cover approximately 14 km2, including a structurally complex north to south valley with bounding faults that has created at least three prospective geologic zones along the western and eastern margins. The current drill program will test targets within these zones, as follows:
A historically undrilled area of receptive units with gold in soil anomalies above shallow bedrock. Targets were generated by surface geochemistry and induced polarization surveys.
This area is bound by large structures on the east and west and has demonstrated surface and subsurface gold mineralization. Reverse circulation (“RC”) drilling from the late 1980’s returned anomalous grades that have not been followed up on. More recent work delivered anomalous gold in soil and rock samples, with basin wide resistivity and chargeability anomalies. The program is designed to test geophysical anomalies and follow-up on identified gold occurrences at surface.
A historically underexplored area of structural complexity with hydrothermal material at surface. RC drilling from the late 1980’s intersected 18.3 metres grading 0.46g/t gold from surface. More recent work has identified gold in soil anomalies corresponding with a chargeability anomaly from IP surveying.
About the Oakley Project
The Oakley project totals 2,833 hectares located 21 kilometres south of Oakley, Idaho. Cold Creek is at the northern end of the claim blocks, flanking the northeastern side of South Middle Mountain. The project hosts low-sulphidation, epithermal mineralization. The underlying Paleozoic Basin-and-Range sedimentary units have the potential to host Carlin-style epithermal mineralization.