Excellon Resources (NYSE/TSX: EXN) (“Excellon” or the “Company”) is advancing a portfolio of precious metals assets, including a pipeline of production, development, and exploration projects. The Company is currently operating in the US, Mexico, and Germany – the Platosa Mine, Mexico’s highest-grade silver mine, production commenced in 2005; the Kilgore Gold Project, a high quality gold development in Idaho with strong economics and significant growth and discovery potential; and an option on the Silver City Project, a high-grade epithermal silver district in Saxony, Germany with 750 years of mining history and no modern exploration.

The Platosa Mine has been in production since 2005, and is 5km north of Bermejillo, Durango, Mexico. The silver mine is located within a 14,000 hectare land package, and is a carbonate replacement deposit (“CRD”). Being the highest-grade silver mine in Mexico, the Platosa Mine exploits a series of typical, though very high‐grade, massive sulphide, distal CRD silver, lead, zinc manto deposits located strategically in the middle of the prolific Mexican CRD Belt. Diamond drilling results continue to confirm that the Platosa property holds considerable potential for the discovery of additional high‐grade manto mineralization and for the discovery of large‐tonnage, though lower grade, proximal skarn mineralization. The Mexican CRD Belt is perhaps the world's best developed CRD cluster with typical deposit sizes within the belt ranging from 10-15 million tonnes. The Platosa Mine lies in the centre of the northwest‐southeast‐trending axis of the largest deposits of the belt. Excellon produced 1.63 moz silver equivalent at Platosa in 2020.

"Our Platosa mine continued to deliver strong production in Q4 2020 after our restart of operations in late Q2, with another quarter of near-record mined and milled tonnage," stated Brendan Cahill, president and chief executive officer. "The numerous improvements we have made to the operation are bearing fruit and we continue to identify additional areas for optimization. Our Miguel Auza mill realized excellent performance throughout 2020 and continues to deliver strong and improving recoveries. Our metal production for 2020 was not far off 2019, despite losing almost an entire quarter of production due to the pandemic -- a testament to the resilience and perseverance of our operational teams. We thank them for their dedication as we look forward to a strong 2021 and yet higher silver prices to come."

The company’s Kilgore Gold Project hosts an epithermal gold deposit, located in Clark County, eastern Idaho. The current resources stands at – Indicated 44.6Mt @ 0.58g/t gold for 825,000oz of gold, and Inferred 9.4Mt @ 0.45g/t gold for 136,000oz of gold. Kilgore displays similar characteristics to Kinross Gold’s Round Mountain Mine, which has produced over 14 million ounces of gold to date. The Preliminary Economic Assessment was very robust, having a post-tax Net Present Value of $259.5M with a 5% discount. The All In Sustainable Cost ($/oz) at US$832 per oz, with a Post-tax IRR of 71.5% (based on $1700/oz gold price).

The optioning of the 164 km2 Silver City Project in Saxony, Germany is icing on the cake for Excellon shareholders. Silver City covers a 36 km SW-NE strike by one to five km wide epithermal vein system situated west of the city of Freiberg (30 km southwest of Dresden) in the famous Freiberg mining district. The exploration license and surrounding area have a long and rich history of silver mining with numerous historic mining camps, small mines and prospects, many of which have only been explored and/or mined to shallow depths seldom exceeding 200 metres below surface. Located along the western edge of the Erzgiberge terrain, the terrain is an erosional window of Variscan basement rocks exposed due to uplifting of the terrain during the Cenozoic period. A large number of hydrothermal veins have been emplaced into this terrain. The area’s long history of mining dates back to the 12th century. Similar to the gold rush in North America, the silver rush in Europe originated in the Ore Mountains of Saxony, which were the source of wealth and power for the Saxon monarchy. Mining continued until the 19th century and ceased when Germany abandoned the silver standard after the Franco-Prussian war and as the depth of mining operations became difficult with the methods then being employed. Sporadic silver mining continued in the 1880’s, but ultimately ceased in 1969 due to economic, political and technological limitations.

Figure 4 – Sample at the Silver City Project

As of today, Excellon Resources (TSX/NYSE: EXN) has 32.34M shares outstanding, and is currently trading at $4.53, giving it a market cap of $146.5M.

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