Excellon Resources Inc. · TSXV:EXN
Excellon Resources — Shareholder Meeting (May 2018)
25 slides from Excellon Resources's shareholder meeting presentation, May 10, 2018
Slide 1: Mexico's highest grade Silver producer
Mexico’s highest grade Silver producer Annual and Special Meeting of Shareholders May 10, 2018
Slide 2: Disclaimer
Disclaimer This document contains “forward-looking statements” within the meaning of applicable Canadian securities legislation and applicable U.S. securities laws. Except for statements of historical fact relating to the Company, such forward-looking statements include, without limitation, statemen
Slide 3: The time is now.
The time is now. 2 www.excellonresources.com
Slide 4: An important year for growth
An important year for growth Strengthened board Improved safety and community performance Completed dewatering program and ramping up production Commenced surface exploration at La Platosa Returned focus on Miguel Auza Cash flow potential with Hecla toll milling arrangement 3 www.excellonresources.c
Slide 5: Board Management
Board Management André Fortier Brendan Cahill Chairman President and CEO Alan McFarland Rupy Dhadwar Chief Financial Officer Daniella Dimitrov Ben Pullinger Senior VP, Geology Laurie Curtis Denis Flood Jacques McMullen VP, Technical Services Dr. Craig Ford Andrew Farncomb VP, Corporate Responsibilit
Slide 6: Creating a platform for growth
Creating a platform for growth Key initiatives resulted in improved safety performance Enhanced management systems driving transparency and recognition Community engagement enhanced at Platosa and Miguel Auza 5 www.excellonresources.com
Slide 7: Achieved dry mining conditions in H2 2017
Achieved dry mining conditions in H2 2017 6 www.excellonresources.com
Slide 8: www.excellonresources.com
7 www.excellonresources.com
Slide 9: Increased production post-optimization
Increased production post-optimization 500,763 475,007 482,079 363,552 368,568 289,566 305,934 255,760 205,314 14,720 14,453 12,003 14,417 11,934 13,877 19,953 17,978 18,885 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Tonnes AgEq oz 8 www.excellonresources.com
Slide 10: Returning to industry leading costs
Total Cash Costs $71.17 All-in Sustaining Cost Per Silver Ounce Payable $61.96 $40.85 $37.87 $22.44 $19.27 $17.95 $18.48 $18.10 $18.42 $16.98 $15.89 $10.38 $9.81 $11.62 $6.27 $2.46 $3.85 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Returning to industry leading costs 9 www
Slide 11: Positioned to continue ramping up production
Positioned to continue ramping up production More efficient installation of ground support underway Commenced Optimization Plan – Phase 2 Driving development in key ramps to increase dry mineral inventory 10 www.excellonresources.com
Slide 12: Transition to cut and fill complete with 50,000 tonnes of dry inventory
Transition to cut and fill complete with 50,000 tonnes of dry inventory above producing faces 11 www.excellonresources.com
Slide 13: Exploration
Exploration 12 www.excellonresources.com
Slide 14: Mexico's CRD Belt
Major CRDs CRDs 1 Cerro San Pedro: 151 Mt (New Gold) 10 13 2 San Martin-Sabinas: 120 Mt (Peñoles) 16 3 Terrazas: 87 Mt (Andromeda) 11 3 4 Santa Eulalia: 50 Mt (Grupo Mex.) 4 5 Penasquito: 45 Mt+ (Goldcorp) 6 Naica: 35 Mt (Peñoles) 6 7 Santa Barbara: 30 Mt+ (Grupo Mex.) 7 18 8 Charcas: 25 Mt (Grupo M
Slide 15: Grow Platosa More
Grow Platosa More Platosa’s World Class Delineate additional tonnes near existing mine Discover and delineate new manto deposits Discovery workings Follow-up on skarn discovery and other regional skarn/ Source- style targets 14 www.excellonresources.com
Slide 16: Santa Eulalia cross section – over 300 years of production
Santa Eulalia cross section – over 300 years of production Platosa is just getting started, so far mineralization only defined in single stratigraphic horizon 15 www.excellonresources.com
Slide 17: Plan view of Platosa Mine
EX16LP1107 795 g/t Ag, 9.25% Pb and 25.85% Zn or 2,481 g/t AgEq over 2.19 m EX17UG347 Plan view of Platosa Mine 858 g/t Ag, 8.8% Pb and 9.7% Zn or 1,705 g/t AgEq over 5.1 m EX17UG323 886 g/t Ag, 8.8% Pb and 20.5% Zn or 2,318 g/t AgEq over 6.76 m N EX17UG369 1,528 g/t Ag, 13.5% Pb and 16.9% Zn or 2,9
Slide 18: Platosa Mine occurs on only 56 ha of 21,000 ha package
Rincon Del Caido 55 m @ 0.08 g/t Au, 132 g/t Ag, 3.13% Pb and 1.74% Zn Platosa Mine occurs on only Jaboncillo 7 m @ 13.07 g/t Au, 21.1 g/t Ag, 56 ha of 21,000 ha package. 3.57% Zn 43 m @ 0.22 g/t Au, 146 g/t Ag, La Platosa 2.76% Pb and 1.85%Zn Potential on property for multiple Platosa’s as well as
Slide 19: Currently drilling in Platosa Corridor
• Currently drilling in Platosa Corridor • Advancing new regional targets through soil geochemistry, detailed mapping and sampling and induced polarization (“IP”) surveys 18 www.excellonresources.com
Slide 20: 14,000 ha on northern part of prolific Fresnillo silver belt
14,000 ha on northern part of prolific Fresnillo silver belt • 35 km SE of Hecla’s high-grade San Sebastian • 135 km NW of Fresnillo and Juanicipio • Historical resource of 22.8M oz AgEq Ind., 11.8M oz Inf. • New exploration prospect from reviewing regional geology • Potential to feed mill with regi
Slide 21: Historical drilling encountered ultra high-grade veinlets near surface
Vein extensions under cover to be explored El Cobre 2008-201 1.2 m @ 76.49 g/t Ag El Gatuño and 0.14 g/t Au La Vibora CC-2005-01 Jabali 0.4 m @ 7,601 g/t Ag, Historical drilling 3.35% Pb and 1.9% Zn Abejas And 2006-85 0.35 m @ 1,010 g/t Ag encountered ultra high- 0.5 m @ 7,377 g/t Ag, 0.28 g/t Au, P
Slide 22: Cash flow generator
Cash flow generator • 650 tpd milling capacity, planning underway to increase to 800 tpd at minimal cost • New tailings facility with 20 year capacity • Bulk sample in Q3 2018 on ore from Hecla’s San Sebastian Mine, 42 km NW • 400 tpd milling agreement to commence in 2019 21 www.excellonresources.co
Slide 23: Price Performance
100.0% 75.0% 50.0% Price Performance 25.0% 6.7% 0.0% (2.1%) (4.1%) (25.0%) (50.0%) 1-May-17 1-Jul-17 1-Sep-17 1-Nov-17 1-Jan-18 1-Mar-18 1-May-18 EXN GDXJ Silver 22 www.excellonresources.com
Slide 24: Share Structure, Trading Summary, Key Shareholders
SHARE STRUCTURE TRADING SUMMARY* Issued & Outstanding: 98.3 M TSX:EXN OTC:EXLLF Options: 1.7 M Av. Daily Vol: 119,128 39,900 DSUs: 2.4 M 52-Week Range: $2.30-1.22 $1.87-0.92 RSUs: 2.8 M Market Cap: CAD$129M US$100M Warrants (C$0.50): 1.9 M (EXN.WT at C$1.75): 6.6 M (EXN.WT.A at C$2.80): 3.7 M Fully
Slide 25: Our vision is to be a premier silver producer
Our vision is to be a premier silver producer by To become a premier precious metals producer by capitalizing on generational opportunities and striving to always do better for our shareholders, employees and neighbouring communities 24