Excellon Resources Inc. · TSXV:EXN
Excellon Resources — Investor Presentation (November 2018)
32 slides from Excellon Resources's investor presentation, November 2018
Slide 1: Mexico's highest grade Silver producer
Mexico’s highest grade Silver producer TSX:EXN | EXN.WT.A | OTC:EXLLF Investor Presentation – November 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 TSX:EXN | EXN.WT.A | OTC:EXLLF WWW.EXCELLONRESOURCES.COM
Slide 4: World class asset, Execution, Growth
World class Execution Growth asset Mine optimization Fully funded exploration complete and programs on two of the One of the richest silver ramping up richest mineral belts in assets in the world - the world resources at over 1 kg/t AgEq and growing 3 TSX:EXN | EXN.WT.A | OTC:EXLLF WWW.EXCELLONRESOU
Slide 5: Board of Directors and Management
Board of Directors Management ANDRÉ FORTIER 3, Chairman BRENDAN CAHILL, President and CEO ALAN MCFARLAND 1,2,3 RUPY DHADWAR, CFO DANIELLA DIMITROV 1,4 BEN PULLINGER, SVP, Geology LAURIE CURTIS 2,4 DENIS FLOOD, VP, Technical Services JACQUES MCMULLEN 2,4 DR. CRAIG FORD, VP, Corporate Responsibility O
Slide 6: Over 500,000 tonnes mined since production commenced in 2005
Over 500,000 tonnes mined since production commenced in 2005 100% owned underground silver- lead-zinc mine LA PLATOSA MINE Safe jurisdiction located 55 km from TORREON Torreon (pop of 1.2 million) with DURANGO EVOLUCIÓN PROPERTY nearby international airport, grid FRESNILLO power and national highway
Slide 7: Edge of a virtually untouched CRD system
Over one million tonnes mined and defined La Platosa 2018 Mineral Resource Estimate Tonnes Ag Pb Zn AgEq Ag Pb Zn AgEq Category (t) (g/t) (%) (%) (g/t) (oz) (lb) (lb) (oz) Indicated 485,000 549 5.6 5.9 1,055 8,562,000 59,752,000 62,953,000 16,456,000 Inferred 13,000 516 4.7 6.5 1,014 216,000 1,344,0
Slide 8: TSX:EXN | EXN.WT.A | OTC:EXLLF WWW.EXCELLONRESOURCES.COM
7 TSX:EXN | EXN.WT.A | OTC:EXLLF WWW.EXCELLONRESOURCES.COM
Slide 9: Silver Equivalent Ounces Produced
Production declined due to surveying and planning issues which have been corrected 25,000 700,000 637,205 500,763 600,000 Silver Equivalent Ounces Produced 20,000 482,079 300,766 475,007 500,000 Tonnes Milled 15,000 305,934 289,566 400,000 255,760 205,314 300,000 10,000 200,000 5,000 100,000 12,003
Slide 10: Returning to industry leading costs
Costs increased as a result of lower production, lower by-product prices and associated provisional price $71.17 adjustments $61.96 $40.85 $44.02 $37.87 $29.94 $22.44 $17.95 $18.48 $18.10 $18.42 $11.62 $15.89 $9.75 $6.27 $2.46 $3.85 ($1.07) Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2
Slide 11: Located on Evolución property in Zacatecas with low trucking cost
• Located on Evolución property in Zacatecas, approx. 220 km from Platosa with low trucking cost • 650 tpd milling capacity, planning underway to increase to 800 tpd at minimal cost • New tailings facility with 20 year capacity • Bulk sample in Q4 2018 on ore from Hecla’s San Sebastian Mine, 42 km N
Slide 12: Top silver producing country in the world
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 4 Santa Eulalia: 50 Mt (Grupo Mex.) 3 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 13: Grow Platosa More, Platosa's World Class
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 12 TSX:EXN | EXN.WT.A | OTC:EXLLF WWW.EXCELLONRESOURCES.COM
Slide 14: La Platosa Rincon del Caido
La Platosa Rincon del Caido After Sillitoe and Bonham 1990 13 TSX:EXN | EXN.WT.A | OTC:EXLLF WWW.EXCELLONRESOURCES.COM
Slide 15: Plan view of Platosa Mine
Plan view of Platosa Mine EX18UG380 1.9 m @ 1,727 g/t AgEq EX18UG398 6.7 m @ 2,034 g/t AgEq EX18UG394 10.2 m @ 3,428 g/t AgEq EX18UG420 EX16LP1107 2.7 m @ 1,708 g/t AgEq 3.0 m @ 2,481 g/t AgEq EX17UG347 5.1 m @ 1,705 g/t AgEq EX17UG369 EX18UG411 3.1 m @ 2,926 g/t AgEq 10.5 m @ 714 g/t AgEq EX18UG435
Slide 16: Platosa is just getting started
Santa Eulalia cross section – over 300 years of production Platosa is just getting started, so far mineralization only defined in single stratigraphic horizon 15 TSX:EXN | EXN.WT.A | OTC:EXLLF WWW.EXCELLONRESOURCES.COM
Slide 17: 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 18: Currently drilling in Platosa Corridor
• Currently drilling in Platosa Corridor • Advancing new regional targets through detailed mapping, sampling and induced polarization (“IP”) surveys 17 TSX:EXN | EXN.WT.A | OTC:EXLLF WWW.EXCELLONRESOURCES.COM
Slide 19: 45,000 ha on northern part of prolific Fresnillo silver belt
45,000 ha on northern part of prolific Fresnillo silver belt • Adjacent to Hecla’s high- grade San Sebastian Mine in Zacatecas • 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
Slide 20: Carbonate dominated big barren veins
Carbonate dominated big barren veins in hole 118 Bladed Veins on surface at Madeira High grade precious metals veinlets?? 19 TSX:EXN | EXN.WT.A | OTC:EXLLF WWW.EXCELLONRESOURCES.COM
Slide 21: Target generation through detailed mapping
• Target generation through detailed mapping, Former small scale sampling and production induced surface samples of polarization (“IP”) up to 667 g/t Ag and 2.3 g/t Au surveys 0.4 m @ 7,601 g/t Ag, • Initial drilling has 3.4% Pb and 1.9% Zn confirmed And 0.5 m @ 7,377 g/t Ag, 0.3 g/t Au, 4.7% Pb per
Slide 22: The evolution of exploration in Mexico
• Consolidated land package covering over 35 km of strike • Negligible previous exploration • Hyperspectral imagery and regional compilation work confirm major structures and alteration associated with Fresnillo trend continue through property • Regional mapping and geochemical program underway The
Slide 23: 100% Mexican, Fully Engaged, Sustainable
100% Mexican Fully Engaged Sustainable Investments 350 employees and Local communities of Health, education & contractors Bermejillo & Mapimi social infrastructure We partner with local, state and federal governments to bring real advancements to our communities 22 TSX:EXN | EXN.WT.A | OTC:EXLLF WWW
Slide 24: Share Structure and Trading Summary
SHARE STRUCTURE TRADING SUMMARY* Issued & Outstanding: 98.7 M TSX:EXN OTC:EXLLF Options: 1.6 M Av. Daily Vol: 124,361 28,922 DSUs: 2.2 M 52-Week Range: $2.15-0.68 $1.72-0.52 RSUs: 2.6 M Market Cap: CAD$72M US$53M Warrants: C$0.50 (Exp Nov. 27, 2019) 1.9 M Warrants: C$2.80 (Exp Dec. 31, 2018) 3.7 M F
Slide 25: Generate free-cash flow, Platosa and Evolución exploration
Generate free-cash flow Ongoing production ramp up at Platosa Underground drilling to further define and extend mantos near existing infrastructure Platosa exploration Explore for new mantos and skarn/source Drilling underway on the northern part of the Evolución exploration Fresnillo silver trend,
Slide 26: Mine optimization complete
Mine Generating Discovering optimization cashflow more complete 25 TSX:EXN | EXN.WT.A | OTC:EXLLF WWW.EXCELLONRESOURCES.COM
Slide 27: Appendix
Appendix 26 TSX:EXN | EXN.WT.A | OTC:EXLLF WWW.EXCELLONRESOURCES.COM
Slide 28: Board and Management biographies
ANDRÉ FORTIER3, Chairman BRENDAN CAHILL, President, CEO and Director Former SVP of Noranda, CEO of Kerr Addison Mines and Campbell Resources. M&A securities lawyer (Davies Ward Phillips & Vineberg LLP). Former VP Corp Dev. of Pelangio Exploration. Member of Young Presidents’ Organization, Transplant
Slide 29: Historical production and operating summary
9-mos 2018(2) 2017(2) 2016 2015 2014 2013 Tonnes Milled 59,663 63,742 55,593 56,849 64,206 69,862 Ag (g/t) 367 393 456 491 603 718 Ore Grades Lead (%) 3.81 3.75 4.40 4.56 6.57 6.14 Zinc (%) 5.59 5.30 5.70 7.20 8.90 8.00 Ag (oz) 643,390 718,460 752,689 794,289 1,162,929 1,409,852 Lead (Ib) 3,947,367
Slide 30: Cash G&A ($ M)
$7.8 $6.1 $5.7 $5.8 Cash G&A ($ M) $4.9 $4.7 $4.6 $3.9 $3.4 $2.9 $2.4 $2.5 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 29 TSX:EXN | EXN.WT.A | OTC:EXLLF WWW.EXCELLONRESOURCES.COM
Slide 31: The Case for Gold and The Case for Silver
THE CASE FOR GOLD THE CASE FOR SILVER • Ongoing currency war • Ratio – trading at 85:1, but produced at less than 10:1 • Negative interest rates – no • Consumption – 50%+ of silver opportunity cost to hold gold production consumed & must be replaced by mine production • Major central bank buying and
Slide 32: 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 info@excellonresources.com www.excellonresources.com TSX:EXN | EXN
Excellon Resources — Investor Presentation (November 2018) on 6ix