Excellon Resources reports financial results for the six months ended June 30, 2012

Toronto Stock Exchange - EXN

TORONTO, Aug. 9, 2012 /CNW/ - Excellon Resources Inc. (TSX:EXN) ("Excellon" or "the Company") Mexico's highest grade silver producer, is pleased to provide results for the second quarter of 2012.

Excellon reports net income of $0.5 million ($0.00 per share) and a total comprehensive loss of $0.8 million for the six months ended June 30, 2012 (all dollar amounts are in US dollars).  For complete details please see Management's Discussion & Analysis of Financial Results, which is available on SEDAR at www.sedar.com.

2^nd Quarter Highlights:

• Silver production of 374,204 ounces at 825 g/t Ag as compared to 383,500 ounces at 844 g/t Ag in the same period of 2011;
• Lead and zinc production of 6.5 million pounds up 74% over the same period of 2011;
• Cash operating cost per ounce silver (net of by-product credits) of $4.25;
• Purchase of 1% Net Smelter Royalty ("NSR") from Golden Minerals Company during second quarter expected to be accretive to cash flow going forward; and
• Excellon holds cash, marketable securities and trade receivables of $18.6 million as of June 30, 2012.

Financial and Operating Highlights:

Highlights for the three and six months ended June 30, 2012, and June 30, 2011 are as follows:

		Three months ended June 30, 2012	Three months ended June 30, 2011	Six months ended June 30, 2012	Six months ended June 30, 2011
		$ 000's	$ 000's	$ 000's	$ 000's
Revenue		13,994	15,442	27,100	22,827
Cost of sales		(5,377)	(4,129)	(10,218)	(8,767)
		8,617	11,313	16,882	14,060
Expenses:
	Corporate administration	(2,294)	(1,493)	(4,098)	(2,960)
	Exploration	(2,498)	(1,504)	(4,578)	(2,304)
	Other income (expense)	(2,542)	1,103	(338)	1,500
	Income tax	(805)	(1,364)	(1,770)	(1,786)
Net income for the period		478	8,055	6,098	8,510
Other comprehensive loss		(1,304)	(667)	(1,226)	(183)
Total comprehensive income (loss)		(826)	7,388	4,872	8,327

Mining Operations:

The following are the La Platosa mine production statistics for the periods indicated:

		Three months ended June 30, 2012	Three months ended June 30, 2011		Six months ended June 30, 2012		Six months ended June 30, 2011
Tonnes of ore processed		17,463	15,373		34,596		27,318
Ore Grades:
	Silver (g/t)	825	844		884		739
	Silver (oz/T)	24.06	24.63		25.78		21.57
	Lead (%)	7.07	6.24		6.83		5.75
	Zinc (%)	13.52	7.91		12.07		7.55
Recoveries:
	Silver (%)	93.5	94.7		92.9		86.7
	Lead (%)	83.9	81.8		80.6		72.8
	Zinc (%)	86.3	76.1		85.4		74.0
Production:
	Silver (oz)	374,204	383,500		810,555		577,221
	Lead (lb)	2,157,535	1,721,354		4,059,564		2,666,109
	Zinc (lb)	4,348,176	2,025,098		7,638,129		3,376,925
Sales:
	Silver (oz)	380,299	383,500		782,395		577,221
	Lead (lb)	2,196,453	1,721,354		3,912,626		2,666,109
	Zinc (lb)	4,348,078	2,025,098		7,369,372		3,376,925
Realized Prices:
	Silver ($US/oz)	29.26	38.23		31.66		37.12
	Lead ($US/lb)	0.90	1.11		0.93		1.13
	Zinc ($US/lb)	0.89	1.06		0.92		1.06

Note:  "t"= tonne;  "T"= ton

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 under explored 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 Crossgrove"
Executive Chairman

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.

Excellon Resources Inc.
Joanne C. Jobin, Vice President, Investor Relations
T. [phone]
E. [email protected]
W. www.excellonresources.com