TORONTO, Jan. 22, 2018 /CNW/ -
Excellon Resources Inc. (TSX:EXN, EXN.WT and EXN.WT.A;
OTC:EXLLF) ("Excellon" or the "Company") is pleased to
announce fourth quarter and annual 2017 production results from the
Platosa Mine, Durango, Mexico.
Highlights
- 2017 Production (compared to 2016)
-
- Silver equivalent ("AgEq") production of 1.5 million oz
(2016 – 1.3 million AgEq oz)
- Silver production of 718,460 oz (2016 – 752,689 oz)
- Lead production of 4.2 million lb (2016 – 4.4 million
lb)
- Zinc production of 6.1 million lb (2016 – 5.6 million
lb)
- Q4 2017 Production (compared to Q4 2016)
-
- Silver equivalent ("AgEq") production of 475,007 oz (Q4 2016
– 305,934 AgEq oz)
- Silver production of 223,349 oz (Q4 2016 – 159,524
oz)
- Lead production of 1.2 million lb (Q4 2016 – 0.9 million
lb)
- Zinc production of 1.9 million lb (Q4 2016 – 1.2 million
lb)
"We made great progress in 2017," stated Brendan Cahill, President and Chief Executive
Officer. "We removed a major bottleneck at Platosa and began
ramping up production, with another solid quarter in Q4
demonstrating stable production under dry mining conditions. We
have more work to do though, as we are working through normal
course transitional issues as we ramp up to higher production
rates."
Productions Results
|
Q4
2017
|
Q4
2016
|
2017
|
2016
|
Tonnes
Mined
|
16,114
|
15,320
|
57,165
|
53,234
|
Tonnes
Milled
|
17,978
|
14,417
|
63,742
|
55,593
|
Grades
|
Silver
(g/t)
|
424
|
375
|
393
|
456
|
Lead
(%)
|
3.81
|
3.52
|
3.75
|
4.40
|
Zinc
(%)
|
5.81
|
4.80
|
5.30
|
5.70
|
Recoveries
|
Silver
(%)
|
90.3
|
90.0
|
89.3
|
90.5
|
Lead
(%)
|
80.0
|
81.1
|
80.9
|
82.1
|
Zinc
(%)
|
82.2
|
81.3
|
81.4
|
80.1
|
Metal
Production*
|
Silver
(oz)
|
223,349
|
159,524
|
718,460
|
752,689
|
Lead
(lb)
|
1,198,286
|
903,763
|
4,241,225
|
4,427,300
|
Zinc
(lb)
|
1,897,894
|
1,248,022
|
6,059,922
|
5,581,060
|
AgEq
(oz)**
|
475,007
|
305,934
|
1,470,650
|
1,293,815
|
* 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.
|
Production during the fourth quarter accessed the Rodilla Manto,
Guadalupe South Manto, Pierna Manto
and the high-grade 623 Manto. During October, production was
primarily from the Pierna and Guadalupe
South mantos, as ground support was required in Pierna and
623 Manto, with both mantos silled and bolted simultaneously.
Historically, intensive grouting to control water served as
enhanced ground support at great cost and time. With grouting
eliminated, the operation is incorporating normal course bolting
and screening at much lower cost and time to advance development.
Tonnage improved considerably during the remainder of the quarter
with multiple operating faces in all four mantos. More efficient
installation of ground support is a key ongoing project at Platosa,
as the mining operation works to increase productivity to reach a
steady rate of production at 300 tonnes per day ("tpd").
Pumping rates were lower than planned during Q4 2017, which
impacted overall drawdown, as repairs were required on the
electrical starters on certain pumps, but are expected to return to
over 30,000 gpm in the coming weeks. Drawdown was also impacted by
refiltration of water from surface into the aquifer from two areas
identified during Q4, which have now been closed off. By the end of
Q4, drawdown rates were returning to expectation and the Company
anticipates continued improvement in Q1 2018. Due to the foregoing,
development rates were lower than the previous quarter with 151
metres in ore (44% decrease over Q3 2017 – 269 metres) and 227
metres in waste (22% decrease over Q3 2017 – 292 metres).
Development rates are expected to continue to increase as headings
drive into the next levels of all four mantos.
During the quarter, the Company continued to process low-grade
historical stockpiles and sump material, with minimal associated
mining cost. This mineralized material is blended with mined ore to
improve payability, as well as being cash flow generative. The
following table sets out the mix of ore and low grade stockpiles
processed year-to-date, demonstrating the increase in AgEq grades
as the year progressed:
|
Q1
2017
|
Q2
2017
|
Q3
2017
|
Q4
2017
|
Feed
Tonnes
|
Tonnes
|
AgEq
(g/t)*
|
Tonnes
|
AgEq
(g/t)*
|
Tonnes
|
AgEq
(g/t)*
|
Tonnes
|
AgEq
(g/t)*
|
Ore
|
11,036
|
660
|
11,051
|
868
|
17,135
|
1,015
|
15,203
|
1,062
|
Low grade
stockpiles
|
897
|
286
|
2,826
|
300
|
2,819
|
339
|
2,775
|
400
|
Total:
|
11,934
|
632
|
13,877
|
752
|
19,953
|
920
|
17,978
|
960
|
* AgEq
ounces established using average realized metal prices during the
period indicated applied to the recovered metal content of
concentrates.
|
In October, the Company successfully commissioned the second
tailings management facility ("TMF") at the Company's milling
facility in Miguel Auza,
Zacatecas. The new TMF will
provide for approximately 19 years of capacity at a 300 tpd
production rate in five stages and replaces the original TMF which
had reached its design capacity. The TMF is a key strategic asset
in the Company's plans to (i) continue growing resources at the
Platosa Mine, (ii) discover additional Platosa-like deposits on the
Platosa Property, and (iii) discover epithermal silver deposits in
the Miguel Auza area.
During 2017, the Company accelerated underground drilling and
successfully added material amounts of mineralization to the upper
parts of the 623 Manto. The Company is currently revising the
Platosa mine plan to incorporate this near-infrastructure and
near-term-mineable mineralization and will provide an update on
2018 guidance in due course. The Company also expects to release an
updated mineral resource estimate for Platosa in the coming
months.
The Company expects to release fourth quarter and annual
financial results at market open on March
22, 2018.
Exploration Update
In mid-December 2017, the Company
commenced an extensive surface exploration program on the
21,000-hectare Platosa Property with 30,000 metres of diamond
drilling planned. One drill rig is currently operating on surface,
focussed on discovering new manto mineralization along the
prospective Platosa Corridor (see press release dated December 14, 2017 for further information).
Drilling also continues underground to define mineralization near
existing infrastructure and around the high grade 623 Mantos, with
additional underground results expected in the coming weeks.
Conversion of Outstanding Convertible Debentures
The Company is also pleased to announce that the accelerated
conversion of all remaining outstanding 3.75% convertible
debentures due November 27, 2019 was
completed on December 28, 2017.
Accordingly, the Company issued 9,695,000 Common Shares at a price
of $0.50 per share and cleared all
outstanding debt from the balance sheet.
"Our debentureholders allowed us to commence the optimization of
Platosa during much less favourable equity and commodity markets.
We are thankful for their trust and support at that time and for
their further participation in recent equity financings. We look
forward to having them as shareholders for many years to come."
Qualified Persons
Mr. Denis Flood, P. Eng.,
Vice-President Technical Services, 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 and
development results contained in this press release.
About Excellon
Excellon's 100%-owned Platosa Mine in Durango has been
Mexico's highest-grade silver mine
since production commenced in 2005. The Company is focused on
optimizing the Platosa Mine's cost and production profile,
discovering further high-grade silver and carbonate replacement
deposit (CRD) mineralization on the Platosa Project and epithermal
silver mineralization on the Miguel Auza Property and capitalizing
on the opportunity in current market conditions to acquire
undervalued projects in the Americas.
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.
SOURCE Excellon Resources Inc.