TORONTO, Sept. 18, 2020 /CNW/ - Excellon Resources
Inc. (TSX: EXN) (TSX: EXN.WT) (OTC: EXLLD) (FRA: E4X2)
("Excellon" or the "Company") is pleased to provide
August production results following its successful restart of
operations in mid-June 2020.
"We continued to realize strong production in August, delivering
record monthly tonnage from both the mine and mill," stated
Brendan Cahill, President & CEO.
"Changes to mine shift scheduling and mining method continued to
deliver improved productivity and lower costs and we expect to
transition to a lower cost energy supplier in early Q4. Electricity
remains the largest cost centre at Platosa and the best opportunity
to reduce cost further."
August 2020 Production
Results
Production in Dry
Metric Tonnes (DMT)
|
August
2020
|
Tonnes Mined from
Platosa
|
7,635
|
Tonnes
Processed
|
8,477
|
Ore
Grades
|
|
Silver
(g/t)
|
451
|
Lead
(%)
|
4.95
|
Zinc
(%)
|
6.76
|
Recoveries
|
|
Silver
(%)
|
86.8
|
Lead
(%)
|
78.8
|
Zinc
(%)
|
78.9
|
Metal
Production*
|
|
Silver
(oz)
|
106,662
|
Lead
(lb)
|
729,081
|
Zinc
(lb)
|
997,157
|
AgEq
(oz)*
|
169,473
|
Average August
2020 Commodity Prices
|
|
Silver
($)
|
26.89
|
Lead
($)
|
0.88
|
Zinc
($)
|
1.09
|
|
|
*
|
Subject to final
settlement prices and assays with concentrate purchaser/AgEq ounces
calculated using average August 2020 metal prices
|
The operation realized ordinary-course variations in metal grade
during August. Recoveries were lower than planned as additional
process optimizations were implemented, but recoveries have
returned to plan in September. Realized cost reductions at Platosa
include reductions to the workforce and renegotiation of treatment
charges on concentrate. Pending cost reductions include the
transition to a new energy supplier, upgrades to underground
communications and various processing optimizations to better
control reagent and consumables usage. The Company expects Platosa
to deliver positive cashflow at current metal prices, particularly
with these realized and pending cost reductions.
Surface Drilling Resumes at Platosa Mine and Nearby
Targets
The Company has recommenced underground and surface drilling at
the Platosa Mine and broader Platosa Property, respectively.
Underground exploration is focused on expanding and further
defining known mineralization. Surface exploration is focused on
near mine targets around the Platosa deposit and the Jaboncillo and
PDN targets north of the mine. Jaboncillo, 11 kilometres northwest
of the Platosa Mine, is a Platosa-style target with a 4 x 4
kilometre alteration footprint, multiple times the size of the
Platosa footprint, where the Company intersected near-surface
gossans in 2019 drilling. PDN, two kilometres north of the
Platosa Mine, is a skarn-style geophysical target that may be
associated with the skarn discovery made in 2012 at Rincón del
Caído. A complete update on the exploration outlook at
Platosa is expected in the coming weeks.
Litigation Update
A subsidiary of the Company's appeal against a judgment revoking
its 2007 purchase of approximately 295 hectares of surface rights
north of the Platosa Mine has been denied by an appeals court in
Mexico. The judgment nullifies the
purchase and orders that the land be returned to the plaintiffs and
the plaintiffs to repay the original purchase price to the
Company's subsidiary.
The Company does not consider the land material to its mining
operation or exploration activities. The decision does not impact
Excellon's mineral rights and the Company does not expect it to
have any impact on its operations.
The plaintiffs also alleged at trial, for the first time, that
the Platosa Mine site was on this land. This assertion was not
decided in the litigation, was not supported by admissible
evidence, contradicts the cadastral registry, conflicts with the
rights of other third-party holders and ignores the fact that the
Company began its use and occupation of the mine site in 2004 –
before the sale in question.
Under Mexican law, Excellon's access to the mine cannot be
impeded. Nevertheless, the Company is considering a variety of
legal avenues to redress the ruling, including further appeal.
COVID-19 Update
Excellon continues to monitor and implement business continuity
measures to mitigate and minimize to the extent possible any
potential impacts from COVID-19 that might impact operations,
procurement or commercial activities. The pandemic has not had any
material impact on production or shipment of concentrate from any
of the Company's operations.
About Excellon
Excellon's vision is to create wealth by realizing strategic
opportunities through discipline and innovation for the benefit of
our employees, communities and shareholders. The Company is
advancing a precious metals growth pipeline that includes: Platosa,
Mexico's highest-grade silver mine
since production commenced in 2005; Kilgore, a high quality gold development
project in Idaho with strong
economics and significant growth and discovery potential; and an
option on Silver City, a high-grade epithermal silver district in
Saxony, Germany with 750 years of
mining history and no modern exploration. The Company also aims to
continue capitalizing on current market conditions by acquiring
undervalued projects.
Additional details on Excellon's 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, 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 September
7, 2018 NI 43-101 technical report prepared by SRK
Consulting (Canada) 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.