Excellon Reports Year End Results for 2010
TORONTO, ONTARIO -- (Marketwire) -- 03/25/11 -- Excellon Resources Inc. (TSX: EXN) (the 'Company' or 'Excellon') is pleased to provide this summary of its financial and operating results for 2010. A copy of the Company's consolidated financial statements for the year ended December 31, 2010, along with Management's Discussion and Analysis in respect thereof will be filed on SEDAR and is also available on the Company's website at www.excellonresources.com.
2010 Highlights:
-- The Company recorded a loss for the year of $3.9 million including
exploration expenditures of $9.0 million. Income from mine operations
was $11.5 million;
-- Sales were 1,302,321 oz. of silver, 5,726,157 lb of lead and 8,009,077
lb of zinc;
-- Cash costs for the year ended December 31, 2010 were US$7.18 per oz
silver;
-- Acquired an additional 17,000 ha (42,000 acres) of 100% owned land and
optioned an additional 17,000 ha (42,000 acres) of land. Both parcels
are strategically located and adjoin the original Platosa Property of
24,000 ha (59,000 acres);
-- Platosa exploration continued to be funded entirely out of internal cash
resources and in 2010, 54,193 metres were drilled in a total of 201
holes;
-- The Company carried out a 2,800 line kilometre ZTEM airborne geophysical
survey over portions of the Platosa Property; and
-- A successful water abatement program is currently in place to manage
water issues that occurred during the 3rd quarter.
Financial Highlights
Financial statement highlights for the year ended December 31, 2010, the five-month period ended December 31, 2009 and the year ended July 31, 2009 are as follows (figures in Canadian dollars unless otherwise noted):
Year ended 5 months ended Year ended
December 31, December 31, July 31,
2010 2009 2009
$ $ $
Revenue 30,425,392 16,031,660 20,056,321
Cost of production (including
amortization) 18,957,616 9,157,606 14,343,024
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Income from mine operations 11,467,776 6,874,053 5,713,297
Expenses:
Exploration expenditures 9,010,297 2,672,450 3,280,296
Write-down of mineral property 1,303,880 - -
General and administration 4,895,567 1,769,384 4,815,872
Other 1,689,089 766,623 1,647,527
Income taxes (recovery) (1,547,316) 928,558 870,432
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Net income (loss) for the period (3,883,741) 737,038 (4,900,830)
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During the year ended December 31, 2010 the Company recorded a loss of $3.9 million compared to a loss of $4.9 million for the year ended July 31, 2009 (net income of $737,038 for the five month period ended December 31, 2009).
Income from mine operations for 2010 was $11.5 million compared to $6.9 million for the five month period ended December 31, 2009. This is significantly lower in 2010, compared to annualized 2009 results, due to lower sales, higher cash costs and higher total production costs. The most significant factor affecting the mine results in 2010 was the underground water problem, which disrupted production for two weeks and increased production costs. Plant throughput rates were similar in the two periods, however, lower grade ore was processed, which negatively affected sales.
Silver sales account for approximately 67% of total sales in 2010 (63% in the five month period ended December 31, 2009, 68% in the year ended July 31, 2009).
Mining Operations
The following are the Platosa mine production statistics for the periods indicated:
12 months ended 5 months ended 12 months ended
December 31, December 31, July 31,
2010 2009 2009
Tonnes of ore processed 64,462 28,034 43,922
Ore grades:
Silver (g/t) 814 889 1,114
Lead (%) 6.37 7.21 8.90
Zinc (%) 7.68 7.49 8.86
Recoveries:
Silver (%) 85.4 89.0 88.1
Lead (%) 68.2 77.3 71.4
Zinc (%) 74.5 66.5 71.3
Production:
Silver - (oz) 1,317,605 633,478 1,475,833
Lead - (lb) 5,804,014 3,278,572 7,585,852
Zinc - (lb) 8,074,321 2,853,542 8,098,377
Sales:
Silver - (oz) 1,302,321 686,072 1,571,668
Lead - (lb) 5,726,157 3,450,520 8,655,152
Zinc - (lb) 8,009,077 3,613,929 7,999,072
Realized
prices:
Silver - ($US/oz) 19.78 17.66 12.66
Lead - ($US/lb) 0.95 1.06 0.64
Zinc - ($US/lb) 0.94 1.03 0.64
Water Abatement Program
The Company has implemented an aggressive abatement program in order to deal with the ongoing water management issues at the Platosa mine. The water inflows occur when mining encounters water-filled faults and the Company began a more intensive grouting program in the late summer of 2010. An underground diamond drill remains dedicated to drilling 25- to 50-metre long sub-horizontal grout cover holes in advance of certain production and development headings to seal off these faults. The Company is acquiring additional pumps and has upgraded electrical infrastructure as it continues to enhance the Platosa water management program. 'The Company recently crossed a major water-bearing fault that caused water inflow issues in the third quarter of 2010,' said Peter Crossgrove, Excellon's Chairman and CEO. 'This provides added confidence that our water abatement program will continue to be successful.'
ZTEM Survey
The Company is pleased to report that following an internal review of the interpreted ZTEM results in collaboration with our geophysical consultant, our geologists have identified numerous first-priority ZTEM anomalies on various portions of the 58,054 ha (143,450 acre) Platosa Property. A second drill is now on site and on March 24th began a Phase 1 program to test several of these targets. Progress will be monitored closely and priorities and targeting criteria will be adjusted as we gain confidence in our ability to correlate ZTEM anomalies with actual drilling results, particularly in the areas of the property where other geotechnical data are sparse. It is expected that the Phase 1 program will take six to eight weeks to complete and once the results are thoroughly analyzed a Phase 2 program will be planned and carried out. 'We are excited with the ZTEM results and are looking forward to seeing initial drilling results. We feel that testing these new targets will bring us closer to the discovery of the large-tonnage, proximal carbonate replacement deposit we believe remains to be discovered on the property,' said John Sullivan, Vice-President Exploration.
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/CRD belt. Excellon's focus is on expanding production and increasing its Mineral Resources at Platosa where an exploration program, focused on diamond drilling and advanced geophysical techniques is ongoing. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system.
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