Toronto Stock Exchange - EXN
TORONTO, Oct. 16, 2012 /PRNewswire/ - Excellon Resources Inc. (TSX:EXN) ("Excellon" or "the Company") is pleased to announce that it has resumed production at the La Platosa mine in the state of Durango, Mexico. The Company expects to release an updated production forecast in due course.
"La Platosa is the highest grade, and one of the lowest cost, silver producers in Mexico," stated Peter Crossgrove, Executive Chairman. "While ramping up over the past month, we have prepared for a rapid restart of production, which we expect will result in a successful fourth quarter, particularly considering current market prices for silver, lead and zinc."
Mr. Crossgrove continued, "We are grateful for the efforts of all levels of Mexican government in ensuring our return to production following this recent difficult period. We are perhaps even more thankful for the unwavering support and activism of the local communities of Bermejillo and Mapimi. La Platosa is an essential part of the local economy, providing some 250 jobs and direct and indirect income to 380 families, along with a further 50 jobs at our mill at Miguel Auza and hundreds of jobs for other workers across Mexico. The local communities recognize that ongoing interference by outside influences poses a grave risk to their livelihoods and the future of their communities."
Status of Drilling
Excellon has also been drilling with four rigs since mid-September at the Rincon del Caido area of La Platosa to follow up on drill hole EX12LP-1019, which intersected the most significant "Source"-type geology and sulphide mineralization yet encountered on the property: 132 g/t (3.8 oz/T) Ag, 3.13% Pb and 1.74% Zn over 55.5 metres, with anomalous gold throughout. The Company expects further exploration results to be available for release prior to month end.
Status of Illegal Protest
A small number of representatives, generally totaling 10-15 persons, of the Sindicato Nacional de Trabajadores Mineros Metalúrgicos, Siderúrgicos y Similares de la República Mexicana (the "USW Union"), which is affiliated with the United Steelworkers, and the Ejido la Sierrita (the "Ejido"), both of which are advised by the non-governmental organization ProDESC, continue to illegally encamp on the Company's property approximately 350 metres from the main mine access. These protesters have occasionally caused minor disturbances at the main mine gate, though the Company has maintained full access to the mine site via an alternate gate. As noted in previous releases, on July 5, 2012 the USW Union lost a government-supervised vote of La Platosa mine workers to elect the representative union at the mine. Further information regarding the USW Union, Ejido, ProDESC and the causes of the protest is available in a backgrounder posted at www.excellonresources.com.
Excellon's high-grade silver production drives transformative exploration potential. The Company'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. With 41,000 hectares of exploration ground surrounding the mine, Excellon is focused on discovering the large-tonnage Source of the high-grade silver mantos currently in production. Such a discovery has the potential to transform La Platosa into the next major project in Mexico's prolific CRD/silver belt.
On behalf of
EXCELLON RESOURCES INC.
Peter A. Crossgrove
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.