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TORONTO, ON–(Marketwired – July 13, 2017) – Excellon Resources Inc. (TSX: EXN) (TSX: EXN.WT) (OTC: EXLLF) (“Excellon” or the “Company”) is pleased to announce dry mining conditions and the completion of its mine optimization plan (the “Optimization Plan”) at the Company’s Platosa Mine in Durango, Mexico.
- All current production headings at Platosa are dry, with ramp up in production rates underway and high-grade headings accessed in the Rodilla and Guadalupe South Mantos
- Completed installation of dewatering infrastructure
- Achieved targeted pumping and drawdown rates
“Platosa is dry,” stated Brendan Cahill, President and Chief Executive Officer. “The completion of the optimization plan at Platosa marks a significant milestone in Platosa’s history and we now have a system fully implemented to eliminate the major bottleneck on production going forward. With dry operating conditions, our immediate goal is a smooth transition to materially higher rates of production and a return to an industry-leading cost profile in the coming quarters.”
“The team at Platosa, led by VP Technical Services Denis Flood, Operations Manager Hector Lira and Project Manager Gerardo Labra, deserves great credit for implementing this plan over the past 18 months. We also benefitted immensely from expert technical oversight by Michael Verreault and his team at HydroRessources Inc. and Patrick Martel and Alex Labbe of Technosub Inc.”
Optimization Plan Update
As further described in the Company’s annual information form (the “AIF”), the Company initiated an Optimization Plan to more effectively dewater Platosa through an enhanced well-pumping system. The Optimization Plan maintains and increases a localized “cone of depression” of the water table around the mine workings, allowing dry mining conditions at Platosa. The Company is transitioning to higher rates of production in fresh high-grade manto mineralization at lower costs relative to current and historical production at Platosa. Refer to the AIF for summary estimates on Platosa production rates and costs subsequent to the completion of the Optimization Plan.
The Company has now completed the installation and commissioning of two booster stations and installed 12 submersible pumps. Both booster stations are now running at full capacity and nearly 100% efficiency. Drawdown rates have met or exceeded the Company’s forecasts, with pumping rates increasing to over 30,000 gpm in early July.
The Company is currently operating on high-grade working faces in Rodilla and the Guadalupe South Manto. In the near term, the Company expects to access the high-grade 623 Manto and move to six production faces during the third quarter. A further update on the transition to higher production rates will be provided in the coming weeks.
Michael Verreault, Ing., has acted as a Qualified Person as defined in NI 43-101 for disclosure in respect of the drawdown rates referenced in this release. Mr. Verreault has a Masters in Applied Science (Hydrogeology) and 15 years of relevant experience focused on hydrogeology. He is a certified professional engineer (OIQ 125243) by the Ordre des ingénieurs du Québec and is President of Hydro- Ressources Inc. Mr. Verreault is independent of the Company and visited Platosa several times during the preparation and ongoing implementation of the optimization plan referenced herein.
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 capitalizing on the opportunity in current market conditions to acquire undervalued projects in Latin America.
Additional details on the La Platosa Mine and the rest of Excellon’s exploration properties are available at www.excellonresources.com.
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.
For Further Information, Please Contact:
Excellon Resources Inc.
Brendan Cahill, President & Chief Executive Officer or
Nisha Hasan, Director Investor Relations
Thu, 13 Jul 2017 11:00:00 GMT