TORONTO, April 15, 2014 /CNW/ - Excellon Resources Inc.
(TSX:EXN; OTC:EXLLF) ("Excellon" or the "Company"),
Mexico's highest grade silver
producer, is pleased to announce first quarter 2014 production
results from the La Platosa Mine in Durango, Mexico.
Q1 2014 Production Highlights
- 589,881 silver equivalent ounces produced (Q1 2013 – 495,529
AgEq oz), including:
- 365,941 oz Ag (Q1 2013 – 312,167 oz Ag)
- 2.3 million lbs Pb (Q1 2013 – 2.2 million lbs Pb)
- 2.6 million lbs Zn (Q1 2013 – 3.5 million lbs Zn)
- Production on track to meet 2014 targets
- Cash, current accounts receivable and marketable securities
total $9.1 million as of March 31, 2014 ($7
million as of December 31,
2013)
"The first quarter was a strong start to the year and built on
the improvements we realized during 2013," stated Brendan Cahill, President and Chief Executive
Officer. "We had exceptional production in March in particular,
with over 250 tonnes produced per day, another important step
towards incrementally increasing Platosa's production profile. We
also milled over 8,300 tonnes of ore during the month at
Miguel Auza."
"During the first quarter we refocused on enhancing mine safety,
which is a key part of our effort to increase operational
consistency and further reduce costs. The first quarter of
production has positioned us well to meet our targets for 2014 and
resume exploration at Platosa in the near term."
Q1 2014 Production Results
|
Q1
2014*
|
Q1
2013
|
2013
|
Tonnes
Mined
|
19,202
|
18,283
|
70,490
|
Tonnes
Milled
|
18,890
|
18,361
|
69,862
|
Grades:
|
|
|
|
Silver
(g/t)
|
614
|
591
|
718
|
Lead
(%)
|
6.67
|
6.35
|
6.14
|
Zinc
(%)
|
8.12
|
10.01
|
8.00
|
Recoveries:
|
|
|
|
Silver
(%)
|
92.7
|
93.7
|
92.6
|
Lead
(%)
|
84.2
|
84.8
|
79.4
|
Zinc
(%)
|
80.8
|
83.8
|
80.2
|
Metal
Production:
|
|
|
|
Silver
(oz)
|
365,941
|
312,167
|
1,409,852
|
Lead
(lb)
|
2,346,766
|
2,161,223
|
7,342,108
|
Zinc
(lb)
|
2,629,682
|
3,506,965
|
9,876,955
|
AgEq
(oz)**
|
589,881
|
495,529
|
2,055,567
|
* Subject to adjustment following settlement with
concentrate purchaser.
** Silver equivalent ounces
established using average metal prices during the period indicated
applied to the recovered metal content of
concentrates.
Ore production during the first quarter was primarily from the
6A and Guadalupe (North, Main and South) mantos, though production
from the 6A Manto was limited during January and February as water
was managed in that area. Grades during the quarter were
generally in line with estimates for the Platosa mineral resources
mined during the period. The Company expects to develop into higher
grade mantos in the 623, 6A and Rodilla mantos later in 2014.
Metal recoveries improved significantly during the period relative
to the third and fourth quarters of 2013.
Outlook
The Platosa operation is working to incrementally increase daily
production throughout 2014, with an initial target of 210 tpd, a 9%
increase over 2013. This target will be assessed and adjusted
by management on an ongoing basis as the Company continues to focus
on improving and strengthening operational efficiencies at the mine
site, including further enhancing grouting techniques and water
management. The Miguel Auza mill
had approximately 55% spare capacity during 2013, leaving
significant availability for increased tonnage. The Company
is also seeking custom milling opportunities in the Miguel Auza area to increase mill
utilization.
Excellon is targeting 2014 production of 1.4 to 1.6 million
ounces of silver, 7.5 to 8.5 million pounds of lead and 9.0 to 10
million pounds of zinc or 2.1 to 2.3 million silver equivalent
ounces (based on $24 silver,
$0.90 lead and $0.90 zinc).
The Company plans to release first quarter financial results
following the close of market on April 29,
2014, immediately preceding the Company's annual
shareholders meeting.
About Excellon
Excellon's 100%-owned La Platosa Mine in Durango is Mexico's highest grade silver mine, with lead
and zinc by-products making it one of the lowest cash cost silver
mines in the country. The Company is positioning itself to
capitalize on undervalued projects by focusing on increasing La
Platosa's profitable silver production and near-term mineable
resources.
Additional details on the La Platosa Mine and the rest of
Excellon's exploration properties are available at
www.excellonresources.com.
Forward-Looking Statements
The Toronto Stock Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of the content
of this Press Release, which has been prepared by management. 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,
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 March 25, 2014 NI 43-101-compliant technical
report prepared by 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.
SOURCE Excellon Resources Inc.