Excellon Resources Inc (TSX:EXN, OTCQB:EXNRF) CEO Shawn Howarth talked with Proactive about the company’s latest developments, including its recent acquisition of a past-producing silver mine in Peru.
The mine, previously operated by Buenaventura from 2012 to 2018, has seen an investment of approximately $115 million in infrastructure, with 50 km of underground development.
Beyond Peru, Howarth also discussed plans for exploration at the Kilgore Project in Idaho.
Proactive: Welcome back inside our Proactive newsroom. Joining me now is Shawn Howarth, CEO of Excellon Resources. Shawn, it's good to see you again. How are you?
Shawn Howarth: It's great to see you. Thank you very much. I'm doing well.
Happy to reconnect. It’s been a while since we last spoke. Before we get into what’s been happening, could you remind everyone about Excellon Resources?
Excellon Resources is a precious metals mineral developer with an exciting portfolio of assets spanning North America, South America, and Europe. Recently, we announced the acquisition of a past-producing silver mine in Peru, and we’re excited to discuss that further.
Yes, let's talk about that. You closed the acquisition toward the end of last year, and investors are wondering about the next steps. What did you like about this mine, and what do you see ahead?
This mine was operated by Buenaventura from 2012 to 2018, and approximately $115 million has been invested into its surface infrastructure. It also has around 50 km of underground mine development. We see this as a near-term opportunity for Excellon to leverage our past operational experience and bring the mine back into production quickly.
And it’s fully permitted to go back into production, correct?
That’s right. The mine is fully permitted for restart. The existing tailings facility has capacity for the next two to three years of operation. There’s also an initial JORC-compliant mineral resource, with about one year of reserves and additional mineral inventory for two to three years of mine life. After closing the transaction, we will upgrade this resource to 43-101 compliance.
Once the acquisition is finalized, what are the immediate next steps? Are you planning to start work this year?
Yes. We anticipate closing the transaction in early to mid-2025. After that, our focus will be getting back underground and restarting the mill. We expect this to take three to six months, meaning we could be producing silver as early as Q3 or Q4 of this year.
Will the revenue from this mine help fund your other projects? Can you give an update on what’s happening elsewhere in Excellon’s portfolio?
Absolutely. We’re excited to restart exploration at the Kilgore Project in Idaho. Cash flow from the Peruvian mine could help support other project development, particularly in Idaho. We’re focusing on deeper exploration for high-grade mineralization in select areas of the Kilgore deposit.
Is Idaho a good place to be developing a resource project right now?
Idaho is a great jurisdiction for resource development. We have strong partnerships with the U.S. Forest Service, and we’re fully permitted for exploration. Additionally, Idaho’s Governor, Brad Little, recently announced efforts to streamline permitting, which could help remove some administrative challenges for projects like ours.
Looking at Excellon’s strategy, are you considering further acquisitions, or are you focused on your current assets?
Our priority was to return to producer status, which Excellon had when we operated the Platosa Mine a few years ago. We have the experience and expertise to operate efficiently. When evaluating opportunities, we focus on leveraging our team’s skills and partnerships to develop silver mines in the 2 to 3 million ounce range. There are plenty of opportunities out there.
Quotes have been lightly edited for clarity and style