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Excellon to meet with Ejido la Sierrita

06.09.2012  |  CNW

Toronto Stock Exchange - EXN

TORONTO, Sept. 6, 2012 /CNW/ - Excellon Resources Inc. (TSX:EXN) ("Excellon" or "the Company") is pleased to advise that the Company continues to access its La Platosa Mine in the state of Durango, Mexico through the alternative access opened on August 29, 2012 (see press release dated August 30, 2012).

Today, representatives of the Company will be meeting with members of the Ejido la Sierrita (the "Ejido") in Mexico City to work on a resolution to the illegal blockade commenced by the Ejido at La Platosa on July 8, 2012 with the assistance and funding of the non-governmental organization ProDESC and the Sindicato Nacional de Trabajadores Mineros Metalúrgicos, Siderúrgicos y Similares de la República Mexicana (the "USW Union"), affiliated with the United Steelworkers Union.  The federal government of Mexico will mediate the meeting, with the state government of Durango also in attendance.

The federal government has advised all parties that the meeting will focus strictly on the three issues the Ejido claim as the primary reasons for the illegal blockade:  (i) ore trucking concessions, (ii) cafeteria concessions and (iii) water management.  The federal government has stated that a concrete advance or resolution of these three issues should result in the permanent removal of the Ejido's illegal blockade of La Platosa.

Prior to the illegal blockade, Excellon provided the Ejido with the documents and information necessary to implement the trucking and cafeteria concessions.  As the Ejido have not obtained a permit from CONAGUA (the federal bureau responsible for Mexican water management and permitting) for the water pumped from La Platosa, Excellon cannot currently provide the Ejido with water to be removed from the La Platosa property.  Excellon has made alternative proposals to the Ejido in respect of water management and hopes to advance these proposals further today with the cooperation of the Ejido and the federal and state authorities.  The water pumped from La Platosa is of agricultural quality and in its natural state, as confirmed on a quarterly basis by an independent certified laboratory (samples collected by Health Safety and Environmental Outsourcing (HSEO) of Torreon and tested by Laboratorio del Grupo Microanálisis S.A. de C.V. of Mexico City), with the results of such testing reviewed by CONAGUA.

Excellon will be accompanied at the meeting by representatives of the Concerned Women of Bermejillo (the "CWB"), a group of local women from the communities of Bermejillo and Mapimi whose families and livelihoods have been affected by the illegal blockade. The CWB recognizes that La Platosa is an essential part of the local economy, providing 250 jobs and direct and indirect income to 380 families.  The CWB continues to pledge its support for Excellon and the resumption of full production and employment at La Platosa.

Status of La Platosa Mine:
On the morning of August 29th, a combined group of state and federal authorities peacefully reopened access to the mine site via a new alternative access approximately one mile from the main access where the main illegal blockade is located.  Later in the day, approximately 40 blockaders from the main blockade moved to illegally block this new access.  During the late afternoon shift change, however, the Concerned Women of Bermejillo successfully and peacefully disrupted the new illegal blockade, allowing workers access to the mine.

During the blockade, essential services were maintained at La Platosa, including pumping operations.  The Company aims to resume full production when ordinary course permits are received.  Excellon will provide an updated forecast when the ramp up to full production is completed.

Excellon has provided a backgrounder for all stakeholders at www.excellonresources.com that describes the issues to be discussed at today's meeting and the Company's position in respect of each, along with further information regarding the illegal blockade, the Ejido, USW Union and ProDESC.

About Excellon
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
Executive Chairman

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.

SOURCE Excellon Resources Inc.

Excellon Resources Inc.
Joanne C. Jobin, Vice President, Investor Relations
T.  (416) 364-1130
E.  info@excellonresources.com
W. www.excellonresources.com


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