Excellon Resources Inc. (TSX:EXN and OTC:EXLLF) (“Excellon” or the “Company”) is pleased to provide an operations update following the resumption of mining and milling activities at its Mexican operations in mid-June 2020.
“We realized strong production in July after restarting the Platosa Mine in mid-June and that trend continued through August,” stated Brendan Cahill, President & CEO. “The cost reduction measures we implemented in Q2 are delivering results, even prior to the pending switch to a private electricity supplier. Underground exploration has resumed at Platosa and we are about to resume surface drilling on potential extensions to the Platosa resource and the Jaboncillo and PDN targets north of the mine. With silver prices at 10 year highs, we expect to have positive cashflow from our Platosa operation going forward.”
July 2020 Production Results
* Processed tonnes includes June 2020 stockpile
** Subject to final settlement prices and assays with concentrate purchaser/AgEq ounces calculated using average July 2020 metal prices
Cost reduction measures at Platosa included material reductions to the workforce, changes to shift schedules and mining methods, and the renegotiation of treatment charges on zinc concentrates. The changes to shift schedules resulted in a more productive operation despite reductions in the workforce; as a result, the Company continues to benefit from lower operating costs and higher commodity prices. The shift to a private electricity provider is expected to be completed in the third quarter, with further reductions to operating costs expected in Q4.
COVID-19 Mitigation and Response Plans
On the restart of operations, following the government-mandated suspension of non-essential business activities in Q2, the Company provided two days of safety and COVID-19 exposure prevention training, reorganized the workforce and implemented more efficient work schedules and various ventilation, mining method and other business improvements. COVID-19 prevention, hygiene and safety measures, health screening, travel restrictions, contact tracing, testing and quarantine protocols are in place and have so far proven effective in protecting the workforce from confirmed COVID-19 cases that originated from community spread.
To date there has been no material impact to production or shipment of concentrate from any of the Company’s operations as a result of COVID-19. Additionally, there has been no significant disruption to the supply chain of the Company’s operations. Excellon continues to monitor and implement business continuity measures to mitigate and minimize to the extent possible any potential impacts of the pandemic that might emerge in our operations, procurement and commercial activities.
Excellon’s vision is to create wealth by realizing strategic opportunities through discipline and innovation for the benefit of our employees, communities and shareholders. The Company is advancing a precious metals growth pipeline that includes: Platosa, Mexico’s highest-grade silver mine since production commenced in 2005; Kilgore, a high quality gold development project in Idaho with strong economics and significant growth and discovery potential; and an option on Silver City, a high-grade epithermal silver district in Saxony, Germany with 750 years of mining history and no modern exploration. The Company also aims to continue capitalizing on current market conditions by acquiring undervalued projects.