In a recent interview (
https://www.youtube.com/watch?v=Bn2XyIGB5xw&feature=youtu.be ) Brendan Cahill and Ben Pullinger presented ‘data and plans of interest’ for Excellon in response to questioning by Matthew Gordon. Matthew had clearly done his homework well and deserves credit for the depth and quality of information elicited.
Five development projects were analyzed with objectives, stepping stones to achievement, and self-critiques on feasibility (rather honestly done). These were Kilgore, Silver City, Jaboncillo-PDN (Platosa), Oakley, Evolucin.
When asked for their #1 project (14:26), Brendan answered Kilgore. The current PEA for Kilgore is 825,000 oz. Au at 0.58 g/t (not very exciting). But Ben and Brendan emphasized that is only a superficial oxide region above a potentially (very) large Aspen formation. The Aspen formation borders a caldera (15:48) and might extend substantial distances along strike. Remember OliverZ’s comments (that the Aspen formation was what excited him).
Ben called the oxide layer only ‘sweat’ from the deeper deposit (15:44). Drill holes into the Aspen Formation show promise (56.4 m @ 2.05 g/t, 59.5 m @ 3.79 g/t, 50.3 m @ 4.24 g/t, 94.5 m @ 4.21 g/t, 30.5 m @ 5.37 g/t Au). Over the next 18 - 20 months they plan additional drill holes into the Aspen Formation ($12 million) (17:00). A lot of diamond drilling is needed to meet stringency for a formal PEA. Goals include extending geological surface studies, Forest Service and environmental requirements, deep drilling beginning next summer, financing.
What if in 2 – 3 years they can prove up 5 million oz. for a mine producing 100,000 oz. Au per year over 10 years from an extended Aspen Formation? (16:40)
A new Board Member from the Otis merger is Michael Timmins, formerly VP corporate development at Agnico Eagle and with a substantial track record in mine acquisitions and ‘key investments in junior gold companies’. Brendan mentions him (32:30) as a counselor for many ideas. But Brendan says he is also talking to everyone about everything all the time (23:46). Brendan labeled himself ‘a trader’ - including even for Platosa - in response to a question by Matthew (22:02). Matthew’s point was selling Platosa would amply fund Kilgore and Silver City explorations.
But Brendan responded better yet, might be securing the longitudinal cash flow from Platosa to fund explorations [rather than relying solely on financings and JVs]. Brendan emphasized (elsewhere) the plan for Platosa is to push hard for profitability to fund other development projects. #3 of which is Jaboncillo/PDN which have potential footprints in skarn perhaps 25 times as big as that of the current Platosa mine (22:40),
and are on the Platosa property.
The most novel and potentially massively rewarding project (clearly Ben’s #1) is Silver City. Excellon controls about 25 km strike length in Saxony including ancient mines with rich narrow veins previously mined by pick and shovel until the late 1800’s. Grades were up to 1,000 gm Ag/ton, down to perhaps 60 to 200 meters. Comparative geologists predict substantially richer regions are at great depths. They have promising drill cores (
https://www.excellonresources.com/_resources/news/2020/20201201b.pdf ). But Ben’s goal would be veins of at least 2 or 3 meters and at least 800 gm Ag/ton, to justify attack with modern mining methods (29:07). Brendan and Ben presented a substantial list of achieved and achievable goals (24:12; 25:32). These include options, licensing fees, surface access rights, various licensing and regulatory approvals from authorities, relationships with farmers who own the land and corporations which do the farming, and most importantly - people at or associated with the Freiberg Helmholtz Institute
https://www.excellonresources.com/news/details/index.php?content_id=257. A lot of groundwork is done. More cores are being processed. They have ‘good looking rock’ (25:57) and assays will follow. Munzig could be eventful. High end results could be multi-kilograms Ag per ton (26:52).
Please note that the fifth largest silver producing region in the world is in Poland east of the trend held by Excellon (
https://www.pgi.gov.pl/en/psg-1/psg-2/informacja-i-szkolenia/wiadomosci-surowcowe/10934-copper-and-silver-resources-in-poland.html ). A principal company there processes and pulverizes Excellon cores for assay thorough Vancouver-related labs. In addition to visual inspection of the cores in that process, scientists at the Freiburg University are developing spectral analysis methods for real time characterization of various elements in cores (
https://presentations.copernicus.org/EGU2020/EGU2020-20410_presentation.pdf ).
Oakley (11:24) and Evolucin are promising but were discussed briefly.
I have no professional skills in mining or investment analysis. I have tried to summarize accurately statements of others, reading between the lines. I own shares in Excellon. I incorporate here by reference disclaimers in Excellon news reports and presentations.
Many thanks for the thoughtful comments of contributors to this board.
Bob