Excellon Reports Financial Results for the Three Month Period Ended March 31, 2011
TORONTO, ONTARIO -- (Marketwire) -- 05/13/11 -- Excellon Resources Inc. (TSX: EXN) (the 'Company' or 'Excellon') reports net income of $0.5 million for the three months ended March 31, 2011. (All dollar amounts are in US dollars) (For full details, please see the Company's Management Discussion & Analysis, which was filed on SEDAR, www.sedar.com)
First Quarter Highlights:
-- In the first quarter the Company had sales of 202,077 oz of silver,
931,080 lb of lead and 1,334,575 lb of zinc.
-- Net cash costs after lead and zinc by-product credits for the three
months ended March 31, 2011 were US$8.46/oz.
-- Exploration expenses for the quarter totalled $800,000 for the on-going
program at Platosa. Results continue be successful and encouraging.
-- The Company's cash and cash equivalents at March 31, 2011 was $4.9
million and working capital was $8.9 million.
Platosa mine production in the first quarter was close to plan but was about 25% lower than the same period last year. In addition, the ore grade was significantly lower than plan and when compared to the same period last year. The lower grade mined reflects increased development work required in the mine during the first quarter of 2011. Dilution was higher than anticipated resulting in the reduced ore grades.
Actual and planned mine production figures for the first quarter of 2011 are
as follows:
Period Tonnes Ag (g/t) Pb (%) Zn (%)
First quarter ended March 31, 2011 (plan) 12,500 801 7.21 7.45
First quarter ended March 31, 2011
(actual) 12,391 604 5.12 7.08
April 2011 results were significantly improved. Mine production was 30% ahead of plan at 5,833 tonnes at a silver grade of 1,055 g/t to produce 175,512 oz silver, 650,000 lbs of lead and 650,000 lbs of zinc. Development work during the first quarter allowed us to increase production significantly during April and early May. The Company's current cash position is $11.5 million.
Financial and Operating Highlights
Three months ended Three months ended
March 31, March 31,
2011 2010
$000's $000's
Revenue 7,385 9,975
Cost of sales 4,031 5,090
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Gross profit 3,354 4,885
Expenses:
Exploration expenditures 800 2,190
General and administration 1,131 1,095
Other 546 447
Income taxes 422 620
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Net income for the period 455 533
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Mining Operations
3 months ended 3 months ended
March 31, 2011 March 31, 2010
Tonnes of ore processed 12,391 16,521
Ore grades:
Silver (g/t) 604 921
Lead (%) 5.12 7.27
Zinc (%) 7.08 8.81
Recoveries:
Silver (%) 83.3 88.2
Lead (%) 68.2 73.3
Zinc (%) 71.6 78.4
Production:
Silver - (oz) 202,077 512,163
Lead - (lb) 931,080 2,392,238
Zinc - (lb) 1,334,575 3,228,515
Sales:
Silver - (oz) 202,077 447,970
Lead - (lb) 931,080 2,125,863
Zinc - (lb) 1,334,575 2,688,625
Realized prizes:
Silver - ($US/oz) 33.38 17.15
Lead - ($US/lb) 1.17 0.98
Zinc - ($US/lb) 1.09 0.96
Exploration
The first quarter exploration program had two principal objectives. One was to further define and expand the high-grade massive sulphide mineralization in the Pierna Manto, discovered in late 2010. The second was to continue to pursue the potential for discovery of larger-volume medial and proximal carbonate replacement deposit (CRD) mineralization. Geological evidence of this potential has been found in several drill holes completed since 2008 including hole EX10-LP763 drilled in 2010 in the Rincon del Caido area approximately 1.5 km NNW of the Guadalupe Manto. With respect to the Pierna Manto, the Company reported assays from five 2011 holes in a press release dated May 2, 2011. The best hole was LP904, which intersected 2.55 metres (m) of massive sulphides grading 1,412 g/t (41 oz/T) Ag, 18.99% Pb, 18.44% Zn. Hole LP903 also intersected very high values. The Pierna Manto remains open to the north and northwest along a significant northwest-southeast trending structure and drilling continues. Drilling in and close to the Rincon del Caido - 6A/6B Corridor continued to encounter encouraging geological signs related to large-tonnage proximal CRD mineralization. In late February the Company received the initial final interpreted results of the ZTEM airborne geophysical survey carried out in the fall of 2010. In late March a second drill was added to the Platosa exploration program to begin testing ZTEM anomalies. Although interpretation will be a continuing process as actual drilling results improve our knowledge of how the ZTEM results relate to the bedrock geology and structures encountered, the survey has already outlined a large number of previously undetected and untested conductive areas and structural zones or systems of interest. Drilling progress has been slow and as of the date of this report there are no results to report, however, Company geologists are confident that this survey will materially guide exploration for a large-tonnage proximal carbonate replacement deposit similar to others in the prolific CRD Belt of Mexico.
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. Excellon's focus is on expanding its operating capacity 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