Excellon Resources Reports Nine Month Profit and Outlook for Fourth Quarter
November 14, 2012
Toronto Stock Exchange - EXN
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
$1.3 million on drilling at the DeSantis and Beschefer properties
$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:
Peter McGaw recommends EXN on a recent video interview on Industry Watch.
Click here to watch the full interview