Toronto Stock Exchange - EXN
TORONTO, Jan. 23, 2012 /CNW/ - Excellon Resources Inc. (TSX:EXN) ("Excellon" or "the Company") is pleased to report fourth quarter and year end production updates for 2011 and that it has exceeded both fourth quarter and annual silver production targets for 2011 by approximately 40% and 4.5% respectively. The Company also reports that at year-end, it held approximately US$22 million in cash.
In the fourth quarter the Company produced 484,617 ounces in concentrate compared to a budget target of 346,674 ounces of silver in concentrate.
Annual silver production totaled 1.38 million ounces in concentrate as compared to a budget target of 1.32 million ounces of silver in concentrate.
Guidance for 2012:
Planned production for 2012 is estimated at 1.37 million ounces of silver in concentrate with a throughput of 72,000 tonnes at the Company's Miguel Auza Mill.
Jeremy Wyeth, President and CEO states; "We are very pleased that we have been able to exceed our targets for the fourth quarter 2011, enabling us to meet our annual budget for 2011. This positions us well for 2012."
The Company has budgeted an estimated US$6.9 million for the 2012 Mexican drill program in and around the La Platosa Mine. Subject to change, depending on results, the budget will be split roughly evenly between the search for additional high-grade manto sulphides and the high-tonnage source of the manto mineralization. In addition the Company has allocated an estimated US$3.9 million for Canadian exploration drilling progammes at the Beschefer (Quebec) and DeSantis (Ontario) gold properties. The Company will fund all 2012 exploration programs through operational cash flow.
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 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 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. 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's exploration activities are fully funded through existing cash flow.
On behalf of
EXCELLON RESOURCES INC.
President and Chief Executive Officer
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 United States.
For further information: