Platosa Mine Reports Significant Improvements In Operations

 

TORONTO, ON - Excellon Resources Inc., President and CEO Brendan Cahil said, "Development rates, maintenance and electrical efficiency improved materially, grouting was eliminated and overall mobile pump usage was slashed. We began to see much higher rates of production at Platosa Mine, in Mexico, which have averaged 215 tonnes per day to-date in July, an increase of 72% relative to the first half of 2017, with access to fresh, high grade manto mineralization in Rodilla and Guadalupe South. Our next steps are to continue driving development headings to access additional high-grade working faces in the 623 and Pierna mantos and further ramp up production through the remainder of the year."

During April and May, production primarily came from the 674 heading, outside of the Rodilla resource area, which adversely impacted ore grades. During May, operations began to access a high-grade bench in Rodilla, with metal grades consequently improving. As the Optimization Plan resulted in drier mining conditions, high-grade ore in Rodilla became increasingly more accessible, particularly in the last days of June and into July.

Development rates increased materially from mid-June onward, allowing access to additional ore in the Rodilla Manto and affording access to the high-grade Guadalupe South Manto, which was accessed in the last days of June. Development is now driving towards the high grade 623 Manto directly from the Guadalupe South Manto along a recently identified connector zone of mineralization between the two mantos, targeting the area of drill hole EX16UG274, which intersected 662 g/t Ag, 4.9% Pb, 25.5% Zn and 0.57 g/t Au or 1,886 g/t AgEq over 13.00 meters. During the period, the Company also drove an exploration drift above the 623 Manto to conduct further delineation and expansion drilling of the area in advance of production later this year.

During the period, 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 recoveries (in the case of high-grade lead and/or zinc ore), as well as being cash flow generative. The following table sets out the mix of ore and low grade stockpiles processed per month in the period and also reflects the increase in ore grade during the period as the Rodilla Manto was accessed in dry conditions in late May.

Production rates improved materially in the the last week of June and, therefore, this increase is not reflected in the quarter's results. In addition, July production rates have averaged 215 tpd to-date in significantly higher-grade material than accessed in the second quarter. Going forward, the Company expects to increase production and development rates and reduce installed pumps to 20-25, each of which will yield further operational and financial returns.