Toronto Stock Exchange - EXN
TORONTO, July 16, 2012 /CNW/ - Excellon Resources Inc. (TSX:EXN) ("Excellon" or "the Company") reports that on Monday, July 9th, members of the Edijo de La Sierrita
(The Edijo), assisted by the NGO group PRODESC and Sindicato Nacional
de Trabajadores Mineros Metalúrgicos, Siderúrgicos y Similares de la
República Mexicana which is affiliated with the United Steelworkers
Union of Canada (USW) commenced an illegal action at the Company's La
Platosa Mine, located in Durango Mexico.
Illegal Action Status:
The State and Federal Governments have informed the Company that this
action is illegal and as such, Excellon has filed criminal charges for
damages against all members and groups who are participating in this
The Company has the full support of the State and Federal Governments on
this issue and continues to work with the Government to assist in
ending this action as soon as possible, so that the workers of La
Platosa can return to the mine and resume their livelihoods. At this
time, the Company understands that the Edijo, under the advice of
PRODESC, has refused to meet with local government representatives.
Mining activity at La Platosa continues to be suspended, however
essential services are being maintained. At present the Company
continues to produce concentrate from stockpiled material at its mill,
Miguel Auza located in Zacatecas State, however, it is expected that
the stockpile will be depleted within the next few days. At that time,
a decision will be made regarding potential layoffs at Miguel Auza
while this action continues.
Union Involvement and Status:
The Company has recently been informed, that participants of the illegal
action are being remunerated by the Sindicato Nacional de Trabajadores
Mineros Metalúrgicos, Siderúrgicos y Similares de la República
Mexicana, affiliated with the USW, in an effort to prolong the action.
On July 5, 2012, Labour Authorities attended, as dictated by State and
Federal law, a voting process for the selection of a representative
union at La Platosa on July 5, 2012.
It is the understanding of the Company that the outcome of the voting
did not favour, the Sindicato Nacional de Trabajadores Mineros
Metalúrgicos, Siderúrgicos y Similares de la República Mexicana,
affiliated with the USW, as they only received approximately 1/3 of the
vote cast. The results will not be official until the Labour Authority
completes the formal tabulation process as per the requirements of
Mexican labour law. The Company understands that this process may take
The Company also understands that the Sindicato Nacional de Trabajadores
Mineros Metalúrgicos, Siderúrgicos y Similares de la República Mexicana
and the Sindicato Nacional de Industria "Vicente Guerrero" de los
Trabajadores de la Extracción, Fundición, Transformación, Distribución,
Montaje y Transportación de Productos de Metal, Minerales Conexos,
Derivados y Similares, which presently represents the mine workers may
dispute and petition the results of the vote.
Excellon remains committed to stand by whatever union the employees of
Excellon have chosen to represent them.
Excellon, a mineral resource company operating in Durango and Zacatecas
States, Mexico, and Ontario and Quebec, Canada, is committed to
building value through production, expansion and discovery.
Excellon is Mexico's highest-grade silver producer; it produces 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 CRD/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. The Miguel Auza Mill Operation in Zacatecas also has
41,000 hectares of underexplored land. Excellon also has ongoing gold
exploration programs on the DeSantis Project, located near Timmins,
Ontario and the Beschefer Project, located in northwestern Quebec.
Both these projects host gold mineralization and significant potential
for the discovery of more. Excellon will continue to use cash from
operations to fund its ongoing exploration activities.
On behalf of
EXCELLON RESOURCES INC.
Peter A. Crossgrove
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. 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 November 22, 2011 NI 43-101-compliant
technical report prepared by 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
For further information:
Excellon Resources Inc.
Joanne C. Jobin, Vice President, Investor Relations
T. (416) 364-1130