TORONTO, Oct. 15, 2020 /CNW/ - Excellon Resources
Inc. (TSX: EXN) (TSX: EXN.WT) (NYSE: EXN) (FRA: E4X2)
("Excellon" or the "Company") is pleased to announce
third quarter 2020 production results from the Platosa Mine in
Durango, Mexico.
Q3 2020 Production (compared to Q3 2019)
- Silver equivalent ("AgEq") production increased 23% to
524,312 AgEq oz
(Q3 2019 – 427,131 AgEq oz)
-
- Silver production increased 27% to 326,909 oz
(Q3 2019 – 257,497 oz), the strongest quarter of silver production
since Q2 2014
- Lead production increased 71% to 2.2 million lb (Q3 2019 –
1.3 million lb)
- Zinc production increased 66% to 2.7 million lb (Q3 2019 –
1.7 million lb)
- Record mined tonnes from Platosa during the quarter
- Private electricity contract now in place, promising savings
on largest operational cost
"Our operations team performed exceptionally well in Q3 in all
areas, managing the restart and delivering record mined tonnage
from Platosa, while keeping our people safe through the threat of
COVID-19," stated Brendan Cahill,
President & CEO. "We continue to implement all measures
necessary to minimize the impact of the pandemic on our people and
the operations. Additionally, we have now secured a private
electricity contract linked to natural gas prices, which we expect
to deliver much lower prices in this critical cost centre going
forward, driving down costs overall."
Production Results
|
Q3
2020
|
Q3
2019
|
9-mos
2020
|
9-mos
2019
|
Tonnes
Mined
|
21,877
|
18,167
|
45,046
|
56,967
|
Tonnes of ore
processed
|
22,612
|
17,235
|
42,941
|
53,968
|
Tonnes of
historical stockpile processed
|
-
|
-
|
-
|
1,450
|
Tonnes
Milled
|
22,612
|
17,235
|
42,941
|
55,419
|
Ore
grades
|
Silver
(g/t)
|
483
|
512
|
510
|
520
|
Lead
(%)
|
5.26
|
4.44
|
5.34
|
4.81
|
Zinc
(%)
|
6.81
|
5.97
|
6.80
|
7.13
|
Historical
stockpile grades
|
Silver
(g/t)
|
-
|
-
|
-
|
123
|
Lead
(%)
|
-
|
-
|
-
|
1.22
|
Zinc
(%)
|
-
|
-
|
-
|
1.44
|
Blended head
grades
|
Silver
(g/t)
|
483
|
512
|
510
|
509
|
Lead
(%)
|
5.26
|
4.44
|
5.34
|
4.72
|
Zinc
(%)
|
6.81
|
5.97
|
6.80
|
6.98
|
Recoveries
|
Silver
(%)
|
93.0
|
87.2
|
91.4
|
89.2
|
Lead
(%)
|
85.0
|
77.7
|
84.0
|
78.9
|
Zinc
(%)
|
80.9
|
76.5
|
78.3
|
78.1
|
Metal
Production*
|
Silver
(oz)
|
326,909
|
257,497
|
642,109
|
794,746
|
Lead
(lb)
|
2,227,511
|
1,304,538
|
4,247,172
|
4,444,278
|
Zinc
(lb)
|
2,746,328
|
1,654,175
|
5,036,098
|
6,363,203
|
AgEq
(oz)**
|
524,312
|
427,131
|
1,082,978
|
1,532,330
|
Average
Realized Prices
|
Silver
($)
|
24.82
|
17.65
|
20.18
|
15.78
|
Lead
($)
|
0.84
|
0.94
|
0.80
|
0.88
|
Zinc
($)
|
1.10
|
1.07
|
0.99
|
1.15
|
|
*
Subject to adjustment following settlement with
concentrate purchaser.
|
** AgEq ounces
established using average realized metal prices during the period
indicated applied to the recovered metal content of
concentrates.
|
The operation continued to realize improvements during the third
quarter from the site organizational changes implemented prior to
the pandemic-mandated shutdown. Improvements were recognized in
lower consumable costs, lower workforce costs, an increased in mine
efficiency, improved mine extraction by month and increased
equipment reliability. At the process plant, a focus on feed
blending, reagent optimization and workforce shift schedule
reorganization has resulted in plant operational stabilization and
increased metal recoveries with lower unit cost. Head grades
were consistent with past performance, with reduced silver feed
grades the product of current mining areas and ordinary course
variations. Ongoing focus on business improvements and lower
electricity prices from the newly activated power contract at
Platosa are expected to continue improving the operation's
economics.
The Company expects to file Q3 2020 financials on or about
November 13, 2020.
COVID-19 Update
Excellon continues to implement measures to prevent COVID-19
among the workforce and local communities and to monitor the
effectiveness of these measures in mitigating any potential impact
on our business activities. Our actions have been successful
to-date and the pandemic has not had any material impact on
production or shipment of concentrate from any of the Company's
operations.
Update on Silver City Drilling Results
Drilling has continued as planned on the Company's Silver City
Project since early July. The Company has, however, experienced
significant delays in the return of assays from drilling on the
project, which is also being experienced across the industry. Core
samples are sent from Frieberg to the external assaying
laboratory's sample preparation facility in Poland for sample preparation. These samples
are then flown a central laboratory in British Columbia, Canada for processing. The
logistics of this process, combined with other COVID-19-related
challenges and bull-market demand for assaying services, have
resulted in delays in receiving assays. The Company expects to
release assay results from the ongoing program in due course.
Qualified Persons
Paul Keller, P. Eng., has acted
as the Qualified Person, as defined in NI 43-101, with respect to
the disclosure of the scientific and technical information relating
to production results contained in this press release.
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.