Excellon Reports 2012 Financial Results

Toronto Stock Exchange - EXN

TORONTO, March 27, 2013 /CNW/ - Excellon Resources Inc. (TSX:EXN) ("Excellon" or "the Company"), Mexico's highest grade silver producer, is pleased to report financial results for the years ended December 31, 2012 and 2011.

2012 Highlights

• High-grade production of 1.55 million silver equivalent ounces from the 100%-owned and royalty free La Platosa Mine in Durango, Mexico:
• Ore grades of 846 g/t (24.67 oz/T), 6.75% Pb and 11.81% Zn;
• 1.1 million ounces Ag;
• 5.7 million lbs Pb; and
• 10.5 million lbs Zn;
• Net cash costs per silver ounce of $5.99 ⁽¹⁾ remain among the lowest in the industry;
  
  
• Net income of $8.4 million;
  
  
• Financial position remains strong, with cash, marketable securities and trade receivables totaling $11.0 million at year end;
  
  
• Fully-funded key expenditures during 2012 included:
• $9.9 million on exploration in Mexico and Canada;
• $2.8 million in capital expenditures at the La Platosa Mine and Miguel Auza Mill;
• $2.4 million to repurchase a 1% net smelter return royalty on La Platosa from Golden Minerals - immediately accretive to cash flow and freeing the property of royalties;
• $2.9 million to repurchase 5.1 million common shares of the Company;
• $5 million invested in the Sprott Physical Silver Trust representing an underlying investment of 134,732 ounces of silver;
• Discovery of new Source-style mineralization at Rincon del Caido, with results including:
• 132 g/t Ag, 3.13% Pb and 1.74% Zn over 55.5 m, including 336 g/t Ag, 3.27% Pb, 1.96% Zn over 4.10 m in hole LP1019;
• 146 g/t Ag, 2.80% Pb, 1.90% Zn and 0.216 g/t Au over 43.4 m, including 381 g/t Ag, 10.6% Pb, 11.50%, Zn, 0.354 g/t Au over 5.8 m in LP1023A; and
• 7.25 g/t Au and 3.57% Zn over 13.1 m in LP1038.

"Despite operating for less than three quarters during 2012, we had a successful year on a number of fronts," stated Peter Crossgrove, Executive Chairman.  "We realized the second highest net income in Company history of $8.4 million and the third highest total revenues.  Metal grades continued to be exceptional and we realized the best metal recoveries in Company history. From a production standpoint, we are beginning to demonstrate the continuing upside potential of the La Platosa Mine."

Mr. Crossgrove continued, "We matured as a Company on the community and government relations fronts during 2012.  We implemented an improved comprehensive corporate social responsibility program compliant with internationally recognized standards, which is now successfully underway.  Though we were under intense public scrutiny during much of 2012, the Mexican National Contact Point of the OECD and the environmental and labour authorities in Mexico stated that we are compliant with all of our obligations under Mexican and international laws and best practices.  We continue to put our workers health and safety at the forefront of all of our operational decisions.  Our relationship with local state and federal governments has never been better and we expect those relationships to improve yet further in the coming year."

"Finally, during 2012 we began intersecting the periphery of a significant carbonate replacement deposit, which we have been searching for since acquiring the project.  We are still in the early stages of this major discovery, but we hope that 2013 will bring us closer to realizing its full scope."       

Financial and Operating Highlights
Financial results for the three and twelve-month periods ended December 31, 2012 and 2011 are as follows:

Mine production for the three months and year ended December 31, 2012 and December 31, 2011 was as follows: 

(1) This is a non-IFRS performance measure.  Silver equivalence is a weighted volume average based on market spot prices for silver, lead and zinc during the year.  This measure excludes non-production related costs (i.e. care and maintenance) incurred during the illegal blockade from July 8, 2012 to October 16, 2012, see Note 2.
(2) Production was suspended from July 8, 2012 to October 16, 2012 due to an illegal blockade of the mine site.
(3) This is a non-IFRS performance measure.  Silver equivalent ounces produced in 2012 were established based on realized prices for silver, lead and zinc during the applicable year being applied to the recovered metal content of the concentrates.  Realized prices were approximately US$31 per oz Ag, US$0.90 per lb Pb and US$0.90 per lb Zn during 2012 and US$34 per oz Ag, US$1.00 per lb Pb and US$1.00 per lb Zn during 2011.

Note:  "t"= tonne;  "T"= ton

Completion of New Access Road to La Platosa Mine
Excellon is also pleased to announce the recent completion of a new secure access road to the La Platosa mine.  This road will improve site safety and security and reduce ore haulage distance and times by approximately 5.5 kilometres (20 minutes), respectively, while reducing costs associated with road and equipment maintenance.

Annual and Special Meeting of Shareholders
The Annual and Special Meeting of Shareholders will take place on Tuesday, April 30, 2013 at 10:00 am at the TMX Broadcast Centre, located at The Exchange Tower, 130 King Street West, Toronto, ON, M5X 1J2.  Please contact the Investor Relations Department for further information.

Qualified Person
The Company's exploration programs are supervised by John Sullivan, Excellon's Vice-President of Exploration and he has acted as the Qualified Person, as defined in National Instrument 43-101 ("NI 43-101"), for this disclosure.

Mr. Sullivan is an economic geologist with over 35 years of experience in the mineral industry.  Prior to joining Excellon in 2007 he was a senior geologist at a Toronto-based international geological and mining engineering consulting firm where he evaluated properties and prepared NI 43-101 reports on gold and base metal projects in Canada and internationally.  In addition he has held senior positions with two large Canadian mining companies where he directed major exploration programs, managed field offices, and evaluated projects in Canada, Europe, Africa and Latin America.  Mr. Sullivan is not independent of Excellon as he is an officer of the Company.

About Excellon
An Evolution in High Grade Silver:  Excellon's 100%-owned La Platosa Mine in Durango is Mexico's highest grade silver mine, with lead and zinc by-products making it one of the lowest cash cost silver mines in the country.  The Company is positioning itself to capitalize on undervalued projects by focusing on increasing La Platosa's profitable silver production and near term mineable resources.

Disclaimer:
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.