Excellon Resources produces 589,881 AgEq oz in Q1

2014-04-15 07:11 ET - News Release

Mr. Brendan Cahill reports

EXCELLON STARTS 2014 WITH STRONG FIRST QUARTER PRODUCTION

Excellon Resources Inc. is releasing first-quarter 2014 production results from the La Platosa mine in Durango, Mexico.

Q1 2014 Production Highlights589,881 silver equivalent ounces produced (Q1 2013 A 495,529 AgEq oz), including: 365,941 oz Ag (Q1 2013 A 312,167 oz Ag)2.3 million lbs Pb (Q1 2013 A 2.2 million lbs Pb)2.6 million lbs Zn (Q1 2013 A 3.5 million lbs Zn)Production on track to meet 2014 targetsCash, current accounts receivable and marketable securities total $9.1 million as of March 31, 2014 ($7 million as of December 31, 2013) "The first quarter was a strong start to the year and built on the improvements we realized during 2013," stated Brendan Cahill, President and Chief Executive Officer. "We had exceptional production in March in particular, with over 250 tonnes produced per day, another important step towards incrementally increasing Platosa's production profile. We also milled over 8,300 tonnes of ore during the month at Miguel Auza.""During the first quarter we refocused on enhancing mine safety, which is a key part of our effort to increase operational consistency and further reduce costs. The first quarter of production has positioned us well to meet our targets for 2014 and resume exploration at Platosa in the near term."

Q1 2014 Production Results
                 Q1 2014* Q1 2013  2013     
Tonnes Mined     19,202   18,283   70,490   
Tonnes Milled    18,890   18,361   69,862   
Grades:                                     
Silver (g/t)     614      591      718      
Lead (%)         6.67     6.35     6.14     
Zinc (%)         8.12     10.01    8.00     
Recoveries:                                 
Silver (%)       92.7     93.7     92.6     
Lead (%)         84.2     84.8     79.4     
Zinc (%)         80.8     83.8     80.2     
Metal Production:                           
Silver (oz)      365,941  312,167  1,409,852
Lead (lb)        2,346,7662,161,2237,342,108
Zinc (lb)        2,629,6823,506,9659,876,955
AgEq (oz)**      589,881  495,529  2,055,567

* Subject to adjustment following settlement with concentrate purchaser.

** Silver equivalent ounces established using average metal prices during the period indicated applied to the recovered metal content of concentrates. Ore production during the first quarter was primarily from the 6A and Guadalupe (North, Main and South) mantos, though production from the 6A Manto was limited during January and February as water was managed in that area. Grades during the quarter were generally in line with estimates for the Platosa mineral resources mined during the period. The Company expects to develop into higher grade mantos in the 623, 6A and Rodilla mantos later in 2014. Metal recoveries improved significantly during the period relative to the third and fourth quarters of 2013.

OutlookThe Platosa operation is working to incrementally increase daily production throughout 2014, with an initial target of 210 tpd, a 9% increase over 2013. This target will be assessed and adjusted by management on an ongoing basis as the Company continues to focus on improving and strengthening operational efficiencies at the mine site, including further enhancing grouting techniques and water management. The Miguel Auza mill had approximately 55% spare capacity during 2013, leaving significant availability for increased tonnage. The Company is also seeking custom milling opportunities in the Miguel Auza area to increase mill utilization.Excellon is targeting 2014 production of 1.4 to 1.6 million ounces of silver, 7.5 to 8.5 million pounds of lead and 9.0 to 10 million pounds of zinc or 2.1 to 2.3 million silver equivalent ounces (based on $24 silver, $0.90 lead and $0.90 zinc).The Company plans to release first quarter financial results following the close of market on April 29, 2014, immediately preceding the Company's annual shareholders meeting.