Excellon Provides Production, Exploration and Corporate Update
TORONTO, Feb. 10, 2012 /CNW/ - Excellon Resources Inc. (TSX:EXN) ("Excellon" or "the Company"), Mexico's highest grade silver producer, is pleased to report January production results from its La Platosa silver, lead and zinc mining operations in Durango Mexico. The Company is also pleased to announce updates on Operations, Mexican and Canadian exploration and to provide a general corporate update.
Actual and planned production for the month of January 2012 is as follows:
|Tonnes||Ag (g/t)||Oz. Ag|
Operations at La Platosa Mine
Excellon is pleased to report that as of January 2012, water-handling issues at La Platosa have improved as a result of installing a new 1,000hp vertical turbine pump near the bottom of the mine. The additional capacity is 4,300gpm.
In addition, orders were placed for a rebuilt air jumbo and a scissor lift. The jumbo will augment the existing two jumbos to increase development, while the scissor lift will allow greater flexibility to the grouting crews to reduce inflows of water. Delivery of this equipment is expected at the end of Q1, 2012.
Excellon began the 2012 drilling program at its La Platosa Mine located in Durango State Mexico, in the last week of January with two drill rigs. One is completing a short program near the Cañón Colorado Rare Earth Elements occurrence, after which it will move to targets designed to explore for the proximal high-tonnage Source of the high-grade massive sulphide carbonate replacement deposit (CRD) mantos being exploited at the Platosa Mine. The second rig is testing for additional manto mineralization in the vicinity of the known mantos. Subject to change depending on results, the Company plans to drill 20,000m on Source targets and 20,000m on manto targets during 2012 with a total projected budget of US$6.9 million.
With regard to the Sundance Option, in January, the Company received the final report covering the drilling program carried out by project operator and property owner Sundance Minerals Ltd., in the summer of 2011. Nine holes totalling 3,925m were drilled to test a variety of CRD targets on the Pluton property located contiguous with the western portion of the Platosa property. The program results did not meet Company expectations and following consultation with Sundance, Excellon has terminated the agreement.
Excellon commenced its 2012 drill program at the Beschefer Project, in northwestern Quebec in January. The Beschefer Project is located 12km east of the past-producing Selbaie Mine as well as 60km north-east of the Casa Berardi Mine and 80km east-southeast of the Detour Lake Project. This program follows-up on work by previous property owners, as well as its own 2011 drill program where highlights included the intercept of 12.4 gpt Au over 3.78 m in BE11-003 in the "B-14 Zone". The current program focuses on exploration of the B-14 Zone and will also assess other exploration targets on the property. At this time, the Company is encouraged by the geological results of the program, which as of February 6, 2012 has completed 1,884m drilling. Assays are pending. Subject to change and depending on results the Company plans to spend a projected budget of US$ 3.9 million on exploration activities, including approximately 12,000m of drilling.
General Corporate Update:
Normal Course Issuer Bid (EXN Share Buyback Program)
On November 28, 2011, the Company announced its intention to undertake the purchase of its own common shares for cancellation through the facilities of the Toronto Stock Exchange. Please refer to the News Release of November 28, 2011 for further details.
From December 2011 to February 3, 2012 a total of 1,663,500 common shares have been purchased at an average cost of $0.567 per share including broker commissions.
Appointment of VP, Investor Relations
Excellon is pleased to announce the appointment of Ms. Joanne Jobin as Vice President, Investor Relations effective March 1, 2012.
Ms. Jobin is an Investor Relations professional with over 25 years of dedicated experience in the industry. She has spent most of her career in the natural resources sector and managed the investor relations, corporate affairs and communications programs for a number of publicly traded companies, including J.P. Morgan & Co. (Canada), Barrick Gold, Canadian Tire Corporation, HEPCOE Credit Union, IAMGOLD Corporation and Noront Resources.
In 2002 Ms. Jobin co-founded The F.I.R.M. and in 2010 she founded IR.INC (Investor Relations Services Inc.), both of which were consulting companies dedicated to providing investor relations and marketing services to the natural resource industry.
Ms. Jobin brings with her a wealth of experience and knowledge to the position and we welcome her to Excellon.
Mr. John Sullivan, BSc., PGeo., Excellon's Vice President of Exploration for Mexico has acted as the Qualified Person, as defined in NI 43-101, with respect to the disclosure of the scientific and technical information related to Mexico contained in this MD&A and has supervised the preparation of the technical information on which such disclosure is based.
Mr. Sullivan is an economic geologist with over 35 years of experience in the mineral industry. Prior to joining Excellon in 2007 he was a senior geologist at a Toronto-based international geological and mining engineering consulting firm where he evaluated properties and prepared NI 43-101 reports on gold and base metal projects in Canada and internationally. In addition he has held senior positions with two large Canadian mining companies where he directed major exploration programs, managed field offices, and evaluated projects in Canada, Europe, Africa and Latin America. Mr. Sullivan is not independent of Excellon as he is an officer of the Company.
The Company's Canadian exploration programs are conducted under the supervision of its Vice President of Exploration for Canada, Ms. Heather Miree, BSc., PGeo. Ms. Miree has acted as Qualified Person, as defined by NI 43-101, with respect to the disclosure of the scientific or technical information related to Canada contained in the MD&A and has supervised and verified those portions of the technical activities completed during 2011 on which such disclosure is based and verified technical information related to 2010 exploration activities completed by the Company.
Ms. Miree is an economic geologist with over 25 years of experience in the mineral industry. Ms. Miree has held senior geological and supervisory roles with several junior and mid-sized mining companies, in the areas of exploration and operations. During such roles, Ms. Miree conducted exploration programs, completed project evaluations, managed regional exploration offices, was Chief Mine Geologist, and participated in the advancement of projects from exploration to commercial production. Ms. Miree is not independent of Excellon as she is an officer of the Company.
Excellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, and Ontario and Quebec, Canada, is committed to building value through production, expansion and discovery. Excellon is Mexico's highest-grade silver producer; it produces silver, lead and zinc from the high-grade manto Mineral Resource on its large, 100% owned Platosa Property, strategically located in the middle of the Mexican CRD/silver belt. Excellon's focus is on expanding its operating capacity and increasing its Mineral Resources at Platosa where an exploration program focused on diamond drilling and advanced geophysical techniques is ongoing. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system. Excellon also has ongoing gold exploration programs on the DeSantis Project, located near Timmins, Ontario and the Beschefer Project, located in northwestern Quebec. Both these projects host gold mineralization and significant potential for the discovery of more. Excellon currently has US$22 million in operational cash flow, which will be used to fund future exploration activities.
On behalf of
EXCELLON RESOURCES INC.
President and Chief Executive Officer
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 November 22, 2011 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.