TORONTO, July 16, 2012 /PRNewswire/ – Excellon Resources Inc. (TSX:EXN) (“Excellon” or “the Company”) reports that on Monday, July 9th, members of the Edijo de La Sierrita (The Edijo), assisted by the NGO group PRODESC and Sindicato Nacional de Trabajadores Mineros Metalúrgicos, Siderúrgicos y Similares de la República Mexicana which is affiliated with the United Steelworkers Union of Canada (USW) commenced an illegal action at the Company’s La Platosa Mine, located in Durango Mexico.
Illegal Action Status:
The State and Federal Governments have informed the Company that this action is illegal and as such, Excellon has filed criminal charges for damages against all members and groups who are participating in this illegal action.
The Company has the full support of the State and Federal Governments on this issue and continues to work with the Government to assist in ending this action as soon as possible, so that the workers of La Platosa can return to the mine and resume their livelihoods. At this time, the Company understands that the Edijo, under the advice of PRODESC, has refused to meet with local government representatives.
Mining activity at La Platosa continues to be suspended, however essential services are being maintained. At present the Company continues to produce concentrate from stockpiled material at its mill, Miguel Auza located in Zacatecas State, however, it is expected that the stockpile will be depleted within the next few days. At that time, a decision will be made regarding potential layoffs at Miguel Auza while this action continues.
Union Involvement and Status:
The Company has recently been informed, that participants of the illegal action are being remunerated by the Sindicato Nacional de Trabajadores Mineros Metalúrgicos, Siderúrgicos y Similares de la República Mexicana, affiliated with the USW, in an effort to prolong the action.
On July 5, 2012, Labour Authorities attended, as dictated by State and Federal law, a voting process for the selection of a representative union at La Platosa on July 5, 2012.
It is the understanding of the Company that the outcome of the voting did not favour, the Sindicato Nacional de Trabajadores Mineros Metalúrgicos, Siderúrgicos y Similares de la República Mexicana, affiliated with the USW, as they only received approximately 1/3 of the vote cast. The results will not be official until the Labour Authority completes the formal tabulation process as per the requirements of Mexican labour law. The Company understands that this process may take several weeks.
The Company also understands that the Sindicato Nacional de Trabajadores Mineros Metalúrgicos, Siderúrgicos y Similares de la República Mexicana and the Sindicato Nacional de Industria “Vicente Guerrero” de los Trabajadores de la Extracción, Fundición, Transformación, Distribución, Montaje y Transportación de Productos de Metal, Minerales Conexos, Derivados y Similares, which presently represents the mine workers may dispute and petition the results of the vote.
Excellon remains committed to stand by whatever union the employees of Excellon have chosen to represent them.
Excellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, and Ontario and Quebec, Canada, is committed to building value through production, expansion and discovery. Excellon is Mexico’s highest-grade silver producer; it produces silver, lead and zinc from the high-grade manto Mineral Resource on its large, 100% owned Platosa Property, strategically located in the middle of the Mexican CRD/silver belt. Excellon’s focus is on expanding its operating capacity and increasing its Mineral Resources at Platosa where an exploration program focused on diamond drilling and advanced geophysical techniques is ongoing. The Platosa Property, not fully explored, has several geological indicators of a large m ineralized system. The Miguel Auza Mill Operation in Zacatecas also has 41,000 hectares of underexplored land. Excellon also has ongoing gold exploration programs on the DeSantis Project, located near Timmins, Ontario and the Beschefer Project, located in northwestern Quebec.
Both these projects host gold mineralization and significant potential for the discovery of more. Excellon will continue to use cash from operations to fund its ongoing exploration activities.