Mr. Brendan Cahill reports
EXCELLON PRODUCES TWO MILLION SILVER EQUIVALENT OUNCES IN 2014
Excellon Resources Inc. has released fourth quarter and annual 2014 production results from the La Platosa Mine in Durango, Mexico.
2014 Production Highlights (compared to 2013)
Silver equivalent ("AgEq") production of 2.05 million ounces (2013 - 2.06 million AgEq Oz)Silver production of 1.2 million ounces (2013 - 1.4 million ounces)Lead production of 7.5 million lb (2013 - 7.3 million lb)Zinc production of 10.1 million lb (2013 - 9.9 million lb)
Q4 2014 Production Highlights (compared to Q4 2013)
Silver equivalent production of 366,272 ounces (Q4 2013 - 545,428 AgEq Oz)Silver production of 206,343 ounces (Q4 2013 - 411,277 ounces)Lead production of 1.1 million lb (Q4 2013 - 1.7 million lb)Zinc production of 1.7 million lb (Q4 2013 - 1.9 million lb)
"We had a strong first eight months of the year, with improved production rates and mill recoveries," stated Brendan Cahill, President and Chief Executive Officer. "Though production was lower during the last four months of the year, we hit our revised target for silver production. Silver equivalent production remained near-record, with lead and zinc production achieving a new record of 17.6 million lb, the highest in the last five years and, key contributors to revenue in the current low silver price environment. Looking forward, we are now beginning to mine the high-grade 623 Manto, which will contribute to improved production, grades and costs later in 2015 and, particularly, through 2016 and 2017." Mr. Cahill continued, "As always, improved water management remains a key opportunity to increase production and dramatically reduce costs at Platosa. We are confident that under dry mining conditions, we can significantly increase production rates, and ultimately, a dry mining scenario is our goal. We are already working with experts in the field on developing a comprehensive water management program and look forward to providing an update on this in the coming months."
Production of 1.2 million ounces of silver was in line with the Company's revised guidance provided during the third quarter. Lead production of 7.5 million pounds met the Company's original target of 7.5- 8.5 million pounds, while zinc production of 10.1 million pounds exceeded the Company's original target of 9-10 million pounds. Combined lead and zinc production of 17.6 million lbs was the highest in the last five years, due in large part to base metal grades and improved recoveries in 2014. The Company expects strong lead and zinc production to continue providing positive cash flow during the ongoing period of relatively low silver prices, with imminent zinc supply deficits expected to result in higher zinc prices during 2015 and beyond. Ore production during the fourth quarter was primarily from the 6A, Guadalupe, Guadalupe South and 5A mantos. Grades during the quarter were generally in line with estimates for the Platosa mineral resources mined during the period. Mine operations were development-focused during the quarter due to water management delays experienced in the third quarter. Development meterage exceeded targets by 11% (480 metres developed versus 432 metres budgeted). Dry mining conditions in the 6A Manto allowed for significantly increased rates of development during the quarter. Development will be focused on the 6A, 623 and Rodilla mantos through the first two quarters of 2015. During the fourth quarter, the Company began accessing the periphery of the high-grade 623 Manto, hosting mineral resources of 83,000 tonnes at 1,232 g/t Ag (1,777 g/t AgEq), with this manto expected to reach full production after mid-2015. Total cash costs and all-in costs per AgEq Oz for 2014 and 2015 production targets will be provided in the Company's 2014 annual financial results, scheduled for release prior to market open on March 25, 2015.
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