SOURCE: Excellon Resources Inc.

Excellon Resources Inc.

July 21, 2015 17:00 ET

Excellon Reports Second Quarter 2015 Production

TORONTO, ON--(Marketwired - July 21, 2015) - Excellon Resources Inc. (TSX: EXN) (OTC: EXLLF) ("Excellon" or the "Company"), Mexico's highest grade silver producer, is pleased to announce second quarter 2015 production results from the La Platosa Mine in Durango, Mexico.

Q2 2015 Production Highlights (Compared to Q2 2014)

  • Silver equivalent ("AgEq") production of 341,975 oz (Q2 2014 - 636,713 AgEq oz)
  • Silver production of 182,709 oz (Q2 2014 - 374,266 oz)
  • Lead production of 1.0 million lb (Q2 2014 - 2.3 million lb)
  • Zinc production of 1.7 million lb (Q2 2014 - 3.1 million lb)

"Production remains on track to meet guidance for the year, with grade and tonnage during the quarter generally in line with the mine plan for the period," stated Brendan Cahill, President and Chief Executive Officer. "We remain focused on the optimization project for Platosa and existing pump infrastructure is already being upgraded. The second phase of the program is expected to commence prior to the fall and will initially focus on preparatory test work in advance of drilling dewatering wells and underground drain wells."

 
Q2 2015 Production Results
             
   Q2 2015  Q2 2014  6-Mos 2015  6-Mos 2014
   Tonnes Mined  13,709  19,152  27,629  38,354
   Tonnes Milled  14,629  19,567  28,457  38,457
Grades            
   Silver (g/t)  475  594  499  607
   Lead (%)  4.40  6.49  4.87  6.58
   Zinc (%)  6.87  8.88  7.82  8.51
Recoveries            
   Silver (%)  84.7  93.0  88.6  92.4
   Lead (%)  73.6  84.8  75.9  84.5
   Zinc (%)  80.1  82.8  81.9  81.7
Metal Production*            
   Silver (oz)  182,709  374,266  399,788  740,207
   Lead (lb)  1,024,813  2,304,958  2,277,608  4,651,724
   Zinc (lb)  1,744,678  3,102,239  3,983,991  5,731,921
   AgEq (oz)**  341,975  636,713  750,070  1,226,594
* 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 second quarter was primarily from the 6A, Guadalupe South, Guadalupe North and periphery of the 623 mantos, with development focused on the 6A, 623 and access to the Rodilla mantos. Grades during the quarter, though lower than in previous periods, were in line with estimates for the Platosa mineral resources mined during the period and the Company’s current mine plans.

Recoveries were impacted by the relatively lower grades of ore processed, but are expected to return to normal levels as higher grade ore is accessed. During the period, water management at Platosa was effective at controlling inflows, though continues to limit productivity and development in operations as expected. As announced on June 2, 2015, the Company has developed an optimization program to comprehensively manage water at Platosa in the future through an enhanced pumping system, the implementation of which is in early stages. Further updates on this program will be provided through the remainder of the year.

The Company is currently accessing the periphery of the high-grade 623 Manto, hosting mineral resources of 83,000 tonnes at 1,231 g/t Ag (1,766 g/t AgEq), with this manto expected to reach full production during the second half of 2015 as access ramps reaches the main body of that manto.

The Company expects to release second quarter financial results prior to market open on August 13, 2015.

About Excellon

Excellon's 100%-owned and royalty-free 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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