TORONTO, Nov. 14, 2012 /CNW/ - Excellon Resources Inc. (TSX: EXN) ("Excellon" or "the Company"), Mexico's highest grade silver producer, is pleased to announce financial results for the third quarter of 2012 and provide an updated outlook on fourth quarter production.

"While the third quarter of 2012 was difficult due to the illegal blockade at La Platosa, we remain on course for a successful year and have had a profitable first nine months. We have now returned to full production at La Platosa, the highest grade and one of the lowest cost silver mines in Mexico," stated Peter Crossgrove, Executive Chairman. "We are looking forward to a successful fourth quarter on both the production and exploration fronts. Our 2012 production to date versus the same period in 2011 has realized significantly higher silver and zinc grades, as well as higher metal recoveries across the board, both of which should lessen the impact of production lost during the third quarter."

Mr. Crossgrove continued, "Our third quarter discovery of Source-style mineralization at the Rincon del Caido area is currently being followed-up on aggressively with four diamond drills. We have also recently commenced a 5,000-metre drill program at the DeSantis Project near Timmins on new and promising targets and we are preparing to resume drilling at our Beschefer Project in Quebec early in 2013."

Highlights of the Nine-Month Period Ended September 30, 2012

  • High-grade production of 830,100 ounces grading 876 g/t Ag (25.55 oz/T Ag) at net cash costs of $5.31;
  • Discovery of new Source-style mineralization at Rincon del Caido, with results including:
    • 132 g/t (3.8 oz/T) Ag, 3.13% Pb and 1.74% Zn over 55.5 m, including 336 g/t (10 oz/T) Ag, 3.27% Pb, 1.96% Zn over 4.10 m in LP1019;
    • 146 g/t (4.3 oz/T) Ag, 2.8% Pb, 1.9% Zn and 0.216 g/t Au over 43.4 m, including 381 g/t (11.1 oz/T) Ag, 10.6% Pb, 11.5% Zn, 0.354 g/t Au over 5.8 m in LP1023A;
  • Expenditures, fully funded from cash flow, include:
    • $2.4 million on drilling at La Platosa for both mantos and Source mineralization;
    • $1.3 million on drilling at the DeSantis and Beschefer properties in Canada;
    • $1.9 million in capital expenditures at the La Platosa Mine and Miguel Auza Mill;
    • $2.4 million to repurchase a 1% net smelter return royalty on the La Platosa Mine, immediately accretive to cash flow - no further royalties payable on La Platosa;
    • $2.9 million to repurchase 5.1 million common shares of the Company;
    • $5 million invested in the Sprott Physical Silver Trust representing an underlying investment of 134,732 ounces of silver;
  • Four drills currently turning at La Platosa to follow up on Source-style discovery, one rig turning at DeSantis on new and promising targets;
  • Financial position remains strong, with cash, marketable securities and trade receivables totaling $11.8 million as at September 30, 2012.


Financial and Operating Highlights:
Production at the La Platosa Mine was halted from July 8, 2012 to October 16, 2012 due to an illegal blockade of the mine site.

Financial results for the three and nine-month periods ended September 30, 2012 and 2011 are as follows:


  Three months ended
September 30,
Nine months ended
September 30,
  2012 2011 2012 2011
  $ 000's $ 000's $ 000's $ 000's
Revenue 60 11,174 27,160 34,001
Cost of sales (3,958) (6,148) (14,176) (14,915)
  (3,898) 5,026 12,984 19,086
  Corporate administration (1,386) (2,812) (5,484) (5,772)
  Exploration (1,679) (1,658) (6,257) (3,962)
  Other income (expense) 1,440 (1,006) 1,102 494
  Income tax 1,173 (526) (597) (2,312)
Net income (loss) for the period (4,350) (976) 1,748 7,534
Other comprehensive income (loss) 2,486 (2,392) 1,260 (2,575)
Total comprehensive income (loss) (1,864) (3,368) 3,008 4,959