Excellon Resources Inc (TSX:EXN, OTCQB:EXNRF) is preparing for a possible restart of operations at its Mallay silver-lead-zinc mine in Peru after completing the first stage of rehabilitation work and beginning preparations for definition drilling.
The company said more than 2,800 metres of mine access have been rehabilitated across the 4090 and 4150 levels, while dewatering below the 4090 level is underway to support additional drilling and operations restart planning.
Excellon expects to publish an updated resource estimate in the fourth quarter of 2025, following the near completion of remodeling of historical drilling data.
The company plans to launch a 13,000-metre, 40-hole drilling program at the Isguiz Extension in the fourth quarter of 2025 to test down-dip and lateral extensions of known mineralization, with initial results expected in early 2026.
A 3,500-metre, six-hole program is also budgeted for the Shafra Zone to test depth potential below the Pierina gold-silver-lead-zinc vein and explore a gold-rich bulk-tonnage target.
Excellon’s Q4 programs at Isguiz and Shafra will test down-dip continuity and support a staged restart plan, according to CEO Shawn Howarth. “We aim to delineate additional mineralization and demonstrate a path to an extended mine life — well beyond the historical mineral resource estimate,” the CEO told shareholders in a statement.
The company said it has over $20 million in cash and available liquidity, giving it the ability to fully fund its drilling programs and restart efforts.