TORONTO, Feb. 26, 2018 /CNW/ -
Excellon Resources Inc. (TSX:EXN, EXN.WT, EXN.WT.A;
OTC:EXLLF) ("Excellon" or the "Company") is pleased to
announce that it has entered into an agreement with Hecla Mining
Company ("Hecla" – NYSE:HL) to toll mill sulphide ore from
Hecla's San Sebastian mine in
Durango at Excellon's processing facility in Miguel Auza, Zacatecas (the "Milling Facility").
Highlights
- Toll milling arrangement expected to commence in 2019
following successful completion of 4,000 tonne bulk sample testing
program (the "Bulk Sample") at Miguel Auza Facility in Q3
2018
- Expected milled tonnage of 400 tonnes per day ("tpd") or
12,000 tonnes per month to be batched processed under formal
milling arrangement
- Expected to increase the Company's operating cash flow and
reduce milling cost per tonne and all-in sustaining cost ("AISC")
per payable ounce on Platosa Mine production
- Ample capacity remains available to process increased
Platosa Mine production and potential new discoveries at either
Platosa or Miguel Auza
"We are very pleased to begin this partnership with Hecla to process ore from the San Sebastian
Mine, 42 kilometres northwest of our Milling Facility," stated
Brendan Cahill, President and CEO of
Excellon. "This arrangement provides opportunities for additional
operating cash flow to the Company and lower milling cost per tonne
and all-in sustaining cost from Platosa. Our Milling Facility's
exceptional scalability has made this opportunity possible, with
ample capacity remaining to process increased Platosa production
and potential new discoveries at either Platosa or Miguel Auza."
"This arrangement is a significant step towards extending the
life of the San Sebastian mine and we are looking forward to
working with Excellon on this opportunity," stated Phillips S.
Baker, Jr., President and CEO of Hecla. "We will take a bulk sample in the
third quarter and if it is positive could begin mining sulphide ore
next year. San Sebastian sulphides have the potential for
five years of mine life and considerable upside with our recent
exploration discoveries. Excellon's Miguel
Auza facility is well-located for our purposes and expected
to be well suited to process our sulphide ore going forward."
Toll Milling Arrangement
Under the terms of the agreement, the formal toll milling
arrangement is expected to commence in 2019 following the
successful completion of the Bulk Sample in Q3 2018. During the
Bulk Sample and the initial period of the formal arrangement, the
Miguel Auza Facility will produce a copper-lead concentrate and a
zinc concentrate from San Sebastian ore. Following commencement of
the formal milling arrangement, a dedicated copper flotation
circuit will be installed and copper, lead and zinc concentrates
will be produced.
The Milling Facility currently has milling capacity of 800 tpd,
with a 650 tpd ball mill in operation and a second, 150 tpd ball
mill on standby. Crushing capacity totals over 1,000 tpd, none of
which is required for Platosa ore, which is crushed on site at
Platosa. The Company is reviewing current flotation capacity in
collaboration with Hecla but
expects existing capacity to be sufficient for the Bulk Sample and
any upgrades necessary for the initial period of the formal toll
milling arrangement to be of marginal cost. Planning is underway on
the copper circuit upgrade in collaboration with Hecla.
The five-year agreement is subject to due diligence, the
successful processing of the Bulk Sample, and receipt of any
regulatory approvals and third-party consents. Hecla also has an option to extend the
agreement for an additional two years.
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.