Excellon Resources Inc. is pleased to announce dry mining conditions and the completion of its mine optimization plan at the Company’s Platosa Mine in Durango, Mexico.
- All current production headings at Platosa are dry, with ramp up in production rates underway and high-grade headings accessed in the Rodilla and Guadalupe South Mantos
- Completed installation of dewatering infrastructure
- Achieved targeted pumping and drawdown rates
“Platosa is dry,” stated Brendan Cahill, President and Chief Executive Officer. “The completion of the optimization plan at Platosa marks a significant milestone in Platosa’s history and we now have a system fully implemented to eliminate the major bottleneck on production going forward. With dry operating conditions, our immediate goal is a smooth transition to materially higher rates of production and a return to an industry-leading cost profile in the coming quarters.”
“The team at Platosa, led by VP Technical Services Denis Flood, Operations Manager Hector Lira and Project Manager Gerardo Labra, deserves great credit for implementing this plan over the past 18 months. We also benefitted immensely from expert technical oversight by Michael Verreault and his team at HydroRessources Inc. and Patrick Martel and Alex Labbe of Technosub Inc.”
Optimization Plan Update
As further described in the Company’s annual information form (the “AIF”), the Company initiated an Optimization Plan to more effectively dewater Platosa through an enhanced well-pumping system. The Optimization Plan maintains and increases a localized “cone of depression” of the water table around the mine workings, allowing dry mining conditions at Platosa. The Company is transitioning to higher rates of production in fresh high-grade manto mineralization at lower costs relative to current and historical production at Platosa. Refer to the AIF for summary estimates on Platosa production rates and costs subsequent to the completion of the Optimization Plan.
The Company has now completed the installation and commissioning of two booster stations and installed 12 submersible pumps. Both booster stations are now running at full capacity and nearly 100% efficiency. Drawdown rates have met or exceeded the Company’s forecasts, with pumping rates increasing to over 30,000 gpm in early July.
The Company is currently operating on high-grade working faces in Rodilla and the Guadalupe South Manto. In the near term, the Company expects to access the high-grade 623 Manto and move to six production faces during the third quarter. A further update on the transition to higher production rates will be provided in the coming weeks.
Michael Verreault, Ing., has acted as a Qualified Person as defined in NI 43-101 for disclosure in respect of the drawdown rates referenced in this release. Mr. Verreault has a Masters in Applied Science (Hydrogeology) and 15 years of relevant experience focused on hydrogeology. He is a certified professional engineer (OIQ 125243) by the Ordre des ingénieurs du Québec and is President of Hydro- Ressources Inc. Mr. Verreault is independent of the Company and visited Platosa several times during the preparation and ongoing implementation of the optimization plan referenced herein.