Excellon Reports 2nd Quarter Profit of $464K
TORONTO, ONTARIO -- (Marketwire) -- 08/16/10 -- Excellon Resources Inc. (TSX: EXN) (the 'Company' or 'Excellon') reports earnings after tax of $464,197 for the three months ended June 30, 2010. In December 2009 the Company changed its year end to December 31 from July 31.
Period End Highlights:
-- The Company again reports profits with good operating performance at
Platosa. Profitability continues to be enhanced by the operation of the
Miguel Auza Mill acquired in June 2009.
-- In the quarter the Company shipped 352,814 oz. of payable silver,
1,729,004 lbs of payable lead and 2,403,364 lbs of payable zinc (on a
provisional basis).
-- Net cash costs after lead and zinc by-product credits for the three
months ended June 30, 2010 were US$5.82.
-- Exploration expenses for the quarter totalled $3,265,676 for the on-
going programs at Platosa and Miguel Auza. Results at Platosa continue
be successful and encouraging.
-- Cash at June 30, 2010 was $4.9million. Aggressive exploration spending,
equipment purchases and timing of sales shipments have led to the
decrease in the second quarter.
'Platosa continues to provide consistent and profitable operating performance for Excellon as evidenced by these results for the quarter ended June 30, 2010.' commented Peter Crossgrove, Excellon's Chief Executive Officer. 'The second quarter was weaker than the first quarter due to mining lower grades as the higher grade Guadalupe South manto was inaccessible due to the installation of water control systems. In addition, mining crews were partially focused on developing additional mining areas with the arrival of new mining equipment on site. Mining operations in the month of June returned to budgeted levels. While the quarter provided slightly lower volumes than recent history, the Company remained profitable even with aggressive exploration expenses that reduced earnings by approximately $1 million per month. This successful drilling program is producing continued manto mineralization additions and increasing evidence for the discovery of the proximal source.'
Financial Highlights
Three months Three months
ended ended
30-Jun-10 31-Mar-10
----------------- -----------------
Sales $ 8,047,580 $ 10,383,269
Cost of production (including
amortization) 2,570,605 3,404,237
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5,476,975 6,979,032
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Expenses:
Non-cash items 722,606 567,002
Exploration expenditures 3,265,676 2,279,883
G&A and other 2,284,615 2,938,459
Provision for (recovery of) income
taxes - current (765,767) 835,582
(Recovery of) income taxes - future (494,352) (190,990)
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5,012,778 6,429,936
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Net income for the period $ 464,197 $ 549,096
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Cash provided by operating activities $ 471,710 $ 3,372,243
----------------- -----------------
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Cash and short-term investments $ 4,931,361 $ 8,169,210
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Working capital surplus (deficiency) $ 5,695,270 $ 8,865,493
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Mining Operations
3 months 3 months
ended ended
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30-Jun-10 31-Mar-10
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Tonnes of ore processed 18,861 21,057
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Contained metal
Silver (ozs.) 401,749 565,361
Lead (lbs.) 2,686,772 3,376,378
Zinc (lbs.) 3,492,871 4,088,800
Average grade:
Silver (oz/t)(1) 23.5 29.6
Silver (g/t) 730.5 920.8
Silver (oz/T) 21.3 26.8
Lead (%) 6.5 7.3
Zinc (%) 8.4 8.8
Payable metal:
Silver - (ozs.) 352,814 406,108
Lead - (lbs.) 1,729,004 2,010,769
Zinc - (lbs.) 2,430,364 2,272,802
Realized prices
Silver - ($/oz.) 18.46 16.31
Lead - ($/lb.) 0.81 1.01
Zinc - ($/lb.) 0.83 1.03
About Excellon
Excellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, is committed to building value through production, expansion and discovery. Excellon is producing silver, lead and zinc from the high-grade manto Mineral Resource on its large Platosa Property, strategically located in the middle of the Mexican silver belt. In fiscal 2010, Excellon's focus is on expanding its operating capacity and increasing its Mineral Resources at Platosa through a CDN$12 million exploration program where five diamond drills are in operation. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system. The equally large Miguel Auza property hosts an Indicated and Inferred Mineral Resource and was the site of considerable historic mining for silver, (gold), lead and zinc. The exploration potential of Miguel Auza remains to be fully evaluated and is the object of an ongoing exploration program, which began in the fall of 2009. A one-drill initial target-testing program was completed in June.
On behalf of
EXCELLON RESOURCES INC.
Peter Crossgrove, Chairman & Chief Executive Officer
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 January 15, 2010 NI 43-101-compliant technical report prepared by Scott Wilson 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.
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.
Contacts:
Excellon Resources Inc.
Morgan Knowles
Director, Investor Relations
(416) 364-1130
mknowles@excellonresources.com
www.excellonresources.com