TORONTO, Jan. 16, 2014 /CNW/ - Excellon Resources Inc. (TSX:EXN) (OTC:EXLLF) ("Excellon" or the "Company"), Mexico's highest grade silver producer, is pleased to announce fourth quarter and annual 2013 production results from the La Platosa Mine in Durango, Mexico.
Q4 and 2013 Production Highlights
- 2.1 million silver equivalent ounces ("Ag Eq Oz") produced during 2013 (Q4 - 545,000 Ag Eq Oz), including:
- 1.4 million oz Ag (Q4 - 411,000 oz Ag)
- 7.3 million lb Pb (Q4 - 1.7 million lb Pb)
- 9.9 million lb Zn (Q4 - 1.9 million lb Zn)
- Record annual produced and milled tonnage of ~70,000 tonnes, including record quarterly produced tonnes of ~20,000 tonnes in Q4
"During the latter half of 2013 we began to see the results of our continuing efforts to improve and optimize La Platosa production," stated Brendan Cahill, President and Chief Executive Officer. "Of particular note, during the last two quarters of the year we milled almost 38,000 tonnes of ore grading 812 g/t silver for 866,000 silver ounces, demonstrating the potential to increase tonnage while maintaining an industry leading grade and cost profile."
"Our teams at La Platosa and Miguel Auza deserve great credit for the significant improvements in production that were realized in the second half of the year. We aim to continue increasing our production profile and reducing costs into 2014, while further enhancing the foundation of our business - the health and safety of our workers."
Q4 and 2013 Production Results
|Q4 2013||Q4 2012||2013||2012|
|Ag Eq (oz)||545,428||360,831||2,055,567||1,550,964|
|Subject to adjustment following settlement with concentrate purchaser.|
Silver equivalent ounces established using prices of US$24 per oz Ag,
US$0.90 per lb Pb, and US$0.90 per lb Zn
applied to the recovered metal content of the concentrates.
Production of over 1.4 million ounces of silver was the Company's highest annual production at La Platosa since 2009. The Company realized a significant improvement in tonnes per day ("tpd") of production during the latter half of the year from ~175 tpd during Q1/Q2 to ~210 tpd in Q3/Q4 (including 223 tpd in Q4) as the benefits of underground development work during the first half of the year were realized and the Company began identifying further operational efficiencies and improving water management. Production of 2.1 million Aq Eq Oz during the year was in line with the Company's revised target (announced September 17, 2013) and silver grades were generally in line with budget (718 g/t Ag versus 728 g/t Ag budgeted).
Ore production during the fourth quarter was primarily from the 5A, 6A and Guadalupe North mantos. Tonnes milled represented a 27% increase on the previous quarter for a total of 21,186 tonnes. Grades were in line with estimates for the La Platosa resources mined during the period. As in the third quarter, recoveries were slightly lower due to (i) significant remnant grouting from historical water management measures in certain areas mined, (ii) oxide mineralization in the 5A manto, and (iii) similar lead and zinc grades affecting the mill's differential separation of each metal. Silver recoveries improved in the latter part of the quarter to approximately 92%.
The Platosa operation is working to incrementally increase daily production throughout 2014, with an initial target of 210 tpd, a 9% increase over 2013. This target will be assessed and adjusted by management on an ongoing basis as the Company continues to focus on improving and strengthening operational efficiencies at the mine site, including further enhancing grouting techniques and water management. The Miguel Auza mill had approximately 55% spare capacity during 2013, leaving significant availability for increased tonnage.
The Company is currently targeting production of approximately 1.5 million ounces of silver or 2.2 million Ag Eq oz (at US$24 per oz Ag, US$0.90 per lb Pb, and US$0.90 per lb Zn). Net cash costs and all-in costs per Ag Eq Oz for 2013 and forecast for 2014 will be provided in the Company's 2013 annual financial results, scheduled for release prior to market open on March 26, 2014.
In light of the tragic accident that occurred on January 9, 2014, the Company continues to review and enhance safety protocols and training at the La Platosa mine, with a particular focus on improved safety awareness amongst all of its employees and management.
Excellon's 100%-owned La Platosa Mine in Durango is Mexico's highest grade silver mine, with lead and zinc by-products making it one of the lowest cash cost silver mines in the country. The Company is positioning itself to capitalize on undervalued projects by focusing on increasing La Platosa's profitable silver production and near-term mineable resources.
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 November 22, 2011 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.