Excellon Resources (EXN.TO) has announced it will start a 10,000 meter drill program at La Platosa which will be aimed at expanding the total resources of the project in order to increase the mine life. Based on the most recent resource estimate, completed in H1 of this year, Excellon’s remaining mine life is less than 7 years, so something will definitely have to be done in order to show investors there’s additional potential beyond the current market capitalization of C$79M.
The company plans to start a seismic survey close to its existing mine infrastructure, which could indeed be a cost-effective way to generate new exploration targets. The 10,000 meter drill program will focus on the Rincon del Caido discovery which was made in 2012 and the targets generated through the seismic survey.
Excellon was lucky as it was able to process very high-grade ore, but the company should really shift a gear higher to make sure its Platosa mine will continue to produce silver during the next decade.
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Disclosure: The author holds no position in Excellon Resources. Please see our disclaimer for current positions.
