Excellon on the up as Q1 output rises

TORONTO (miningweekly.com) – Mexico’s highest-grade silver producer Excellon Resources on Monday rose to a new 52-week high on the TSX, after it reported strong results for the quarter ended March 31.

Toronto-based Excellon, which operated the high-grade La Platosa mine, in Durango state, reported that silver equivalent production rose 40% quarter-on-quarter to 365 552 oz, comprising 211 557 oz of silver (up 39% quarter-on-quarter), 1.3-million pounds of lead (up 57%) and 1.6-million pounds of zinc (up 26%).

The improved short-term output was the result of the company’s efforts to deal with significant water inflows in the underground mine.

Results were also boosted by the company accessing the Rodilla Manto in late February, seven months ahead of schedule, where Excellon encountered significant ultrahigh-grade mineralisation (over 1 000 g/t silver, 10% lead and 10% zinc) outside of the Platosa resource block model.

This high-grade ore was blended with lower-grade and low-cost stockpiles to improve mill recoveries and concentrate payability. “We are currently developing into the next level of the Rodilla Manto and expect the continuing optimisation programme at Platosa to deliver further operational improvements as the year progresses,” stated president and CEO Brendan Cahill.

Excellon had developed an optimisation programme to comprehensively manage water at Platosa through an enhanced pumping system. The company advised that the second phase of the programme, drilling of the primary dewatering wells, was starting.

Excellon’s TSX-listed stock on Monday rose as much as 38% to C$1.35 apiece, boosting the stock’s year-to-date performance by 227%.