Excellon Resources Gaining
www.excellonresources.com
Momentum on Strong Cash Flow
Chris Hopkins
Chief Financial Officer
Excellon Resources is a mineral resource
company operating in Durango and Za-
catecas States, Mexico. The Company is
producing silver, lead and zinc ore from
high-grade manto deposits on its Pla-
tosa Property, strategically located in the
middle of the Mexican silver belt. It pro-
cesses this ore at its concentrator in the
town of Miguel Auza 220 km south of
the mine and produces silver-lead and
silver-zinc concentrates, which are sold
under the terms of a long-term contract
to an international trader. Miguel Auza
hosts an indicated and inferred mineral
resource and was the site of consider-
able historic mining for silver, gold, lead
and zinc over the centuries. Chris Hop-
kins, Excellon’s CFO tells us more about
where his company is headed.
Resource Intelligence: Can you give us a little his-
tory on Excellon’s involvement in Mexico?
Chris Hopkins: Certainly, Excellon became involved
in Mexico in the early 1990s. It acquired the
Platosa property in 1996 and in 1998 entered
into a joint venture on part of the property
with Apex Silver Mines Ltd. We began produc-
tion in 2005. In June of last year, the Company
completed the acquisition of all the outstand-
ing common shares of TSX-listed Silver Eagle
Mines Inc. for a purchase price of $5,488,722
comprised of $3,370,000 in common shares and
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$1,200,000 in net cash payments for transaction
costs. The purchase included Silver Eagle’s Mex-
ican assets, in particular its Miguel Auza mine
and newly expanded 650 tonne per day mill. We
began processing Platosa ore at Miguel Auza in
March 2009 while acquisition negotiations were
underway. The mine has been on care and main-
tenance since December 2008.
Another important 2009 development was the
purchase of the re-
maining 49% joint
venture interest in
a large portion of “We have world class
the Platosa Prop-
erty from Golden
exploration upside and
Minerals Com- exposure to silver, lead
pany, (successor
to Apex Silver) for and zinc prices through
US$2.0 million in
cash and a 1% Net
the highly profitable op-
Smelter Returns erations at Platosa.”
royalty.
~ CFO Chris Hopkins
On December 10,
2009 we reported
that the Platosa
Indicated Mineral Resource has increased to
a total of 579,000 tonnes grading 909 g/t (27
oz/T) Ag, 9.09% Pb, and 10.51% Zn (as at Oc-
tober 31 2009), up nicely from 396,000 tonnes
grading 986 g/t (29 oz/T) Ag, 9.00% lead, and
10.10% zinc (as at February 3, 2008). The In-
ferred Mineral Resource also increased from
72,700 to 160,000 tonnes at a somewhat lower
grade than that of 2008.
RI: So what are the details on your Platosa Prop-
erty?
CH: Platosa is located in the northeast corner of
the State of Durango, Mexico approximately
45 km north-northwest of the city of Torreon,
Coahuila State, where the largest silver, zinc, lead
smelter and refining complex in Mexico is locat-
ed. The Property consists of 71 contiguous min-
ing concessions covering a total area of 24,065
hectares. It is nominally divided into three areas
based on underlying agreements and/or conces-
sion ownership:
• Excellon 100%/Golden Minerals Royalty
Area: This area comprises 46 concessions total-
ling 10,118 ha. It contains the Platosa mantos,
current Mineral Resources, and Platosa Mine
plus the surrounding area, which prior to
November 2009 had been held in Joint Ven-
ture with Apex Silver Mines Limited (Apex).
In November 2009, Apex’s successor Golden
Mineral Corp. sold to Excellon its interest
in the former Joint Venture concessions or
US$2,000,000 and a 1% Net Smelter Return
royalty.
See page 96 for Disclosure, Disclaimers & Info on Mineral Resource and Reserves
Booth # 2107
416.364.1130
• Altiplano Area: This area comprises 20 conces-
sions owned by Excellon totalling 11,076 ha.
These 20 concessions are subject to a 3% NSR
payable to Exploraciones de Altiplano, S.A. de
C.V., a private Mexican company.
• Others: This area comprises five concessions
totalling 2,870 ha. They are owned 100% by
Excellon and are not subject to any underlying
agreement or royalty.
In addition we own
or lease 1,841 ha of
surface rights.
RI: And what are you
doing there now?
CH: We’re continu-
ing to drill and ex-
pand our resources
at Platosa. On Janu-
ary 14, 2010 we an-
nounced assay results
for thirteen addition-
al drill holes, most
of which intersected
high-grade massive sulphides. Hole LP708 cut
3,300 g/t (96 oz/T) Ag, 11.8% Pb, 0.13% Zn
over 1.15 metres (m) and hole EX09-LP692
intersected 1,470 g/t (43 oz/T) Ag, 4.9% Pb,
7.3% Zn over 1.77 m. Both represented exten-
sions to the 623 Manto, which as reported in the
press release dated December 10, 2009, has an
Indicated Mineral Resource of 62,000 tonnes
grading 1,183 g/t (34 oz/T) Ag, 10.27% Pb and
8.52% Zn. Our 2010 drilling program has three
drills working in the vicinity of the mine explor-
ing for extensions of existing sulphide bodies and
for new ones based on targets developed using
both geophysical techniques and geological data
and modeling developed during our several years
of drilling in the area. A fourth drill will probe
targets in the Saltillera/Zorra area five kilometres
west of the mine where we continue to see the
potential for a large-tonnage proximal carbonate
replacement deposit (CRD).
RI: The acquisition of the Miguel Auza Property
has made an important addition to your holdings
and capabilities. Can you focus on that a little?
CH: Certainly. The Miguel Auza Property is a
large property with great potential for the dis-
covery and exploitation of additional epithermal
silver/gold, lead and zinc veins similar to those
that have been worked so profitably for decades
in the Fresnillo camp, 150 km to the south as
well as elsewhere in the Mexican Silver Belt. It
also presents evidence of a potential carbonate
replacement deposit (CRD) which could be very
important. Although mining has taken place in
 Excellon Resources
- Continued
the camp since the 1500s very little systematic
modern exploration has actually been carried
out and the historic data record is almost non-
existent. Silver Eagle focused on developing the
Calvario Vein system and only began a con-
centrated review of the potential of the overall
property shortly before ceasing activities. Sev-
eral additional vein systems are known including
those exploited by the Spaniards, and the prop-
erty remains largely under-explored. We began
an initial exploration program on the property in
the fall of 2009. Its focus is on determining if
portions of the Calvario Vein system can be ex-
ploited economically and whether other areas of
the large property warrant concentrated explora-
tion efforts.
There was a small flotation mill on the prop-
erty when Silver Eagle acquired it, which was
expanded and used to process oxide material as
Silver Eagle developed the King Ramp and the
sulphide portion of the Calvario Vein system.
Further expansion and modernization took place
during 2008 and it processed Calvario sulphide
mineralization for three months until mid-De-
Main underground pump station at the 100 metre level
Free Revolutionary Online Investment Calculators and all 43-101 data with sources and project values www.resourceintelligence.net
cember 2008. We began shipping our Platosa ore
to the mill in mid-March 2009.
RI: So you are shipping all your Platosa ore to the
Miguel Auza mill?
CH: Yes, and since mill capacity is greater than
production rate at Platosa the mill operating
schedule is set to match shipments and have a
throughput rate that maximizes metallurgical re-
sults. For the mid-March to December 31, 2009
period throughput averaged 280 tonnes per oper-
ating day and was as high as 375 tonnes per day.
A total of 57,902 tonnes of Platosa ore grading
994 g/t Ag, 8.04% Pb, 8.81% Zn were processed
during that period. Recoveries averaged 80% for
Ag reporting to the Pb concentrate, 9% for Ag
reporting to the Zn concentrate for a total of
89% Ag recovery. Pb recovery averaged 74.0%
and Zn recovery 68.0%. Concentrate production
totalled 5,733 tonnes of silver-lead and 6,656
tonnes of silver-zinc.
RI: In summary, why should investors consider
Excellon for their portfolio?
Booth # 2107
www.excellonresources.com
416.364.1130
CH: Excellon is a well-established operator in the
high-grade mining business in Mexico. We have
assembled very large land positions, which have
seen considerable historic production and as
well, hold the potential for significant discoveries
of much larger resources. We are well funded,
expect to generate over $45 in revenues in fiscal
2010 with greater revenues expected as produc-
tion increases in the future. We have world class
exploration upside and exposure to silver, lead
and zinc prices through the highly profitable
operations at Platosa. This self-funded explora-
tion play provides investors with great potential
without the risk of a pure exploration company.
Excellon is an established operator.
Milestones:
• Continue exploring the large
under-explored, strategically
located properties at Pla-
tosa with a $12 million budget
devoted largely to diamond
drilling
• Develop drilling targets at
Miguel Auza with a modest
budget of close to $1 million.
• Increase the mining capacity at
Platosa and continue process-
ing ore at the Miguel Auza mill
• Continue to operate Platosa
on a sustained and consistent
basis generating strong cash
flows.
• Continue multi-tooled, focused
exploration to increase Mineral
Resources at Platosa
• Confirm indications of large-
scale mineralization on both
our properties
• Evaluate additional strategic
acquisition possibilities
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