Excellon Reports Second Quarter Financial Results
TORONTO, ONTARIO -- (Marketwire) -- 08/10/11 -- Excellon Resources Inc. (TSX: EXN) (the 'Company' or 'Excellon') reports net income of $8.1 Million for the three months ended June 30, 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 second quarter the Company had sales of 383,500 oz of silver,
1,721,354 lb of lead and 2,025,098 lb of zinc.
-- Net cash costs after lead and zinc by-product credits for the three
months ended June 30, 2011 were US$3.74/oz.
-- Exploration expenses for the quarter totalled $1.5 million for the on-
going program at Platosa. Results continue to be successful and
encouraging.
-- The Company's cash and cash equivalents at June 30, 2011 was $12.3
million and working capital was $15.8 million.
Actual and planned mine production for the second quarter and first six months of 2011 are as follows:
Period Tonnes Ag (g/t) Pb (%) Zn (%)
Second quarter ended June 30,
2011 (plan) 14,500 793 7.15 7.77
Second quarter ended June 30,
2011 (actual) 15,372 844 6.24 7.92
Six months ended June 30, 2011
(plan) 27,000 797 7.18 7.62
Six months ended June 30, 2011
(actual) 27,318 739 5.75 7.55
Financial and Operating Highlights
3 months 3 months 6 months 6 months
ended ended ended ended
June 30, June 30, June 30, June 30,
2011 2010 2011 2010
$000's $000's $000's $000's
Revenue 15,442 7,846 22,827 17,821
Cost of sales 3,042 4,766 7,073 9,856
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Gross profit 12,400 3,080 15,754 7,965
Expenses:
Exploration expenditures 1,504 3,195 2,304 5,385
General and administration 1,196 939 2,327 2,034
Other 281 (169) 827 278
Income tax 1,364 (1,214) 1,786 (594)
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Net income for the period 8,055 329 8,510 862
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Mining Operations
3 months 3 months 6 months 6 months
ended ended ended ended
June 30, June 30, June 30, June 30,
2011 2010 2011 2010
Tonnes of ore processed 15,372 18,861 27,318 39,918
Ore grades:
Silver (g/t) 844 730 739 831
Lead (%) 6.24 6.45 5.75 6.88
Zinc (%) 7.92 8.41 7.55 8.62
Recoveries:
Silver (%) 89.4 86.3 86.7 87.3
Lead (%) 76.4 67.8 72.8 70.7
Zinc (%) 75.9 76.2 74.0 77.4
Production:
Silver - (oz) 383,500 426,166 577,221 874,136
Lead - (lb) 1,721,354 2,035,317 2,666,109 4,161,180
Zinc - (lb) 2,025,098 3,266,064 3,376,925 5,954,689
Sales:
Silver - (oz) 383,500 365,082 577,221 813,052
Lead - (lb) 1,721,354 1,793,475 2,666,109 3,919,338
Zinc - (lb) 2,025,098 3,005,115 3,376,925 5,693,740
Realized
prizes:
Silver -
($US/oz) 38.23 18.84 37.12 17.91
Lead -
($US/lb) 1.11 0.80 1.13 0.90
Zinc -
($US/lb) 1.06 0.83 1.06 0.89
Exploration
During the second quarter diamond drilling continued to encounter success near existing mine infrastructure, in particular in the high-grade Pierna Manto situated between the Rodilla and NE-1 mantos. In late-June 2011 the Company reported results from eight new holes that intersected high-grade massive sulphides over estimated true widths ranging from 0.30 to 7.01 and expanded the footprint of the Pierna Manto. Among these, hole EX11-LP915 intersected 2.16 metres (m) of massive sulphides grading 1,598 g/t (46.6 oz/T) Ag, 18.19% Pb, 17.79% Zn. The assay results relating to these eight holes are included in the press release dated June 27, 2011. Pierna has now been largely closed off, however, one drill rig continues to work in the mine area exploring for additional massive sulphides.
A second drill was added to the Platosa exploration program near the end of March to begin testing ZTEM anomalies. As of early August eight holes, of which two were abandoned for technical reasons, had been drilled to test these targets. The completed holes confirmed the expected geology but did not intersect significant mineralization. This is not entirely surprising since the interpretation of ZTEM results is an evolving science, particularly in the Mexican carbonate environment. Company geologists, and a consulting geophysicist, continue to review drilling results together with the ZTEM data and the Company is incorporating newly-developed ZTEM interpretive elements into on-going drill hole planning. The Company expects that this process of revisiting the ZTEM data as drilling results accumulate will be an ongoing process. Excellon also remains confident that this methodical approach will continue to bring the Company closer to the discovery of a large-tonnage proximal carbonate replacement deposit (CRD) at Platosa.
With respect to the Sundance Option the Company and project operator Sundance commenced diamond drilling August 3rd. This initial program is testing surface sulphide showings, soil geochemical and geophysical CRD targets developed by Sundance on the Pluton Property, located north of the historic mining town of Mapimi and immediately west of and contiguous with the original Platosa Property.
The Platosa exploration program has met with considerable success, including the discovery of the Pierna Manto and the 6A/6B Manto extension, since the preparation of the last Mineral Resource estimate for the property. As such the Company has engaged Roscoe Postle Associates Inc. to prepare an updated Mineral Resource estimate and accompanying NI 43-101 compliant technical report. This work has begun and we expect it to be complete in late 2011.
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, 100% owned 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. All of these activities are fully funded through existing cash flow. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system.
On behalf of EXCELLON RESOURCES INC.
Jeremy Wyeth, President and 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
Vice President, Investor Relations
(416) 364-1130
mknowles@excellonresources.com
www.excellonresources.com