Montero and Love are killed. Elena and Alejandro (new Zorro) save all the workers just before the mine is blown up. De la Vega (old Zorro)dies from a gunshot while fighting Montero. Alejandro and Elena marry and have a baby named after Alejandro's brother and he tells him tales of Zorro like De la Vega did with baby Elena.
Factual error: During the scene towards the end of the film where Alejandro is chasing Captain Love in the shack with the furnace at the mine, we see a pressure gauge just before the furnace explodes. The unit of measurement on the pressure gauge is shown as kg/cm2. Metric measures were not used in Mexico until eleven years after the film was set, and as California was a part of Mexico at the time, metric measurements would not have been used there.
Trivia: Catherine Zeta Jones, after her fight with Zorro, her dress rips off. She turns around to grab the hat and you can see her nipple for one frame.
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Answer: Marc Antony and Tina Arena sang it. Lyrics at http://www.lyrics.net/lyric/5746519.
Hobbes