SOURCE: Excellon Resources Inc.

Excellon Resources Inc.

April 18, 2016 07:00 ET

Excellon Reports First Quarter 2016 Production

TORONTO, ON--(Marketwired - April 18, 2016) - Excellon Resources Inc. (TSX: EXN) (OTC: EXLLF) ("Excellon" or the "Company"), Mexico's highest grade silver producer, is pleased to announce first quarter 2016 production results from the La Platosa Mine in Durango, Mexico.

Q1 2016 Production Highlights (Compared to Q1 and Q4 2015)

  • Silver equivalent ("AgEq") production of 363,552 ounces (Q1 2015 - 408,095 AgEq oz), up 40% from Q4 2015
  • Silver production of 211,557 ounces (Q1 2015 - 217,079 ounces), up 39% from Q4 2015
  • Lead production of 1.3 million lb (Q1 2015 - 1.3 million lb), up 57% from Q4 2015
  • Zinc production of 1.6 million lb (Q1 2015 - 2.2 million lb), up 26% from Q4 2015
  • Rodilla Manto accessed in late February, seven months ahead of schedule with significant ultra high grade (over 1,000 g/t Ag, 10% Pb and 10% Zn) mineralization encountered outside of Platosa resource block model
  • Phase II of optimization program commencing with primary dewatering well drilling

"In Q1 2016, we again saw the upside potential of Platosa's exceptionally high-grade massive sulphide mantos and began to see further material benefits from our long-term dewatering efforts," stated Brendan Cahill, President and Chief Executive Officer. "In late February, we accessed the Rodilla Manto, approximately seven months ahead of schedule as we encountered mineralization outside of the Platosa resource block model and dry mining conditions facilitated rapid development. A significant amount of this 'bonus' mineralization was ultra high grade, with approximately 1,600 tonnes of ore produced from Rodilla during March grading over 1,000 g/t Ag, 10% Pb and 10% Zn. This ore was blended with lower grade and low-cost stockpiles to improve mill recoveries and concentrate payability. We are currently developing into the next level of the Rodilla Manto and expect the continuing optimization program at Platosa to deliver further operational improvements as the year progresses."

Q1 2016 Production Results

    March 2016   Q1 2016   Q1 2015
Tonnes Mined   5,035   12,778   13,920
Tonnes Milled   6,015   14,720   13,828
Grades            
Silver (g/t)   601   483   533
Lead (%)   6.58   4.80   5.37
Zinc (%)   8.06   6.15   8.83
Recoveries            
Silver (%)   91.1   91.6   90.5
Lead (%)   86.4   83.6   79.2
Zinc (%)   79.0   79.3   83.7
Metal Production*            
Silver (oz)   106,643   211,557   217,079
Lead (lb)   755,718   1,318,916   1,252,796
Zinc (lb)   849,805   1,588,778   2,239,313
             
    March 2016   Q1 2016   Q1 2015
AgEq (oz)**   190,557   363,552   408,095

* 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, N1, Guadalupe North and South and Rodilla mantos. In late February 2016, mine operations began accessing ore from the Rodilla Manto, approximately seven months ahead of schedule and at shallower levels than delineated in the resource block model. The Rodilla Manto was significantly below the water table until recently, but mining conditions are now almost entirely dry in this area as ongoing dewatering efforts have lowered water levels below workings and mineralization.

As delineated in the Platosa resource block model, the upper levels of the Rodilla Manto host mineralization grading approximately 800 g/t Ag, 7% Pb and 10% Zn on an undiluted basis. Much of the "bonus" mineralization encountered in Q1 2016 was materially higher grade on a diluted basis, with approximately 1,600 tonnes of ore produced from Rodilla grading in excess of 1,000 g/t Ag, 10% Pb and 10% Zn. Though the deposit is tightly drilled at 15 metre centres, the manto boundaries are generally erratic and additional mineralization is often encountered outside of the resource block model. Additionally, the Company has noted historically that in areas with very high argentiferous-galena content silver and lead grades are underestimated as such mineralization may be washed out and lost during the diamond drilling process.

Approximately 2,300 tonnes of ore milled during the quarter were extracted from historic stockpiles and settling ponds at Platosa at minimal cost with grades of approximately 150 g/t Ag and 1-2% Pb and Zn. High-grade ore produced during the quarter was blended with this lower grade material to improve recoveries and concentrate payability.

As announced on June 2nd and November 2nd, 2015, the Company has developed an optimization program to comprehensively manage water at Platosa through an enhanced pumping system. The second phase of the program, drilling of the primary dewatering wells, is commencing. Further updates on the progress of this program will be provided regularly during the implementation period.

The Company expects to release first quarter financial results prior to market open on May 11, 2016.

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 historically 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 July 9, 2015 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.

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