Excellon Resources (TSXV:EXN) - Mallay Restarts as Drilling Supports Resource Depth

Shawn Howarth (0:00)

Shawn Howarth, President and CEO of Excellon Resources Inc, a TSXV listed company. The ticker symbol is EXN. Excellon is a near-term silver restart story with assets, flagship assets in Peru.

We're focused on restarting the past, producing my eye silver mine, and concurrent to that, starting to unlock what we think is district potential with exploration nearby with the Tres Cerros Gold and Silver project. Separately, we own Idaho Assets, a PFS or PEA stage development project called Kilgore and exploration in Eastern Germany as well, which we spun out into its own vehicle called the Silver City in Q4 of this year. Shawn, good to have you here.

SPEAKER_2 (0:47)

We knew this story back in 2021-2022, but it looks a very different piece now and we're going to get into that proper. But first of all, here in Beaver Creek, you had a good week?

Shawn Howarth (0:56)

It's been the busiest week for me. I'd say this is the last interview and so if I'm a little bit hoarse, I apologize. It's been good.

SPEAKER_2 (1:05)

Let's make it a good one. Come out with the fireworks. Actually, I think we knew Brandon from back in the day.

I've seen you guys four years in, so tell us a bit about yourself, what your background, how's it relevant to what you've been doing?

Shawn Howarth (1:19)

Yeah, I mean, I came in in 2022 Obviously, the company at the time was looking to reposition its portfolio. We were at that point, sunsetting some past producing silver assets in Mexico.

The job was number one to come in and help restructure that portfolio and look at opportunities going forward. I think what was key here is we had a really strong board that was supporting this, including Brandon and chairperson Larry Curtis. And then beyond that, we had a management team that was capable of seeing through this with strong operational experience. So, the course of 2022, 2023, we exited Mexico. In 2024, we started the acquisition of the Mai-Ai Silver Mine, which we'll talk about. And focused for us is an Excellon was taking the operational expertise and the experience that we had in previous experiences and how we can apply that in a new flavor, in a new project.

SPEAKER_2 (2:17)

Right.

Shawn Howarth (2:17)

Okay.

SPEAKER_2 (2:17)

Different times, different challenges. Obviously, Silver's gone through a nice little run.

It helps. Can I just start with the rest of the portfolio? You've spent a lot of time at Silver City in Germany, obviously, Kilcoor, what's the plan there? Yeah.

Shawn Howarth (2:30)

So in May of this year, we raised 2 million on a free money valuation, 20 million dollars for Silver City. The plan is, we haven't spun it yet, but we're in the process of it. Expect to finish that by the end of this year. I think that's exciting, number one, because it's a fresh take on a European-focused silver exploration vehicle. It's pretty topical in the market right now and can become one of the frontier silver explorers within Central Europe and Germany.

Concurrent to that, we have the Kilcoor project. It's about a million ounces epithermal gold at half a gram per ton in Idaho.

We drilled this in 2023 or started drilling the program. I think the thesis with this project is that there is higher grade structure that we'd like to chase below the current defined open pit. There was a PA that was completed on this in 2019, that outlined about a five-year mine plan, 100,000 ounces. So it has potential. It's definitely an exploration project in resource development. But key for us as far as can we joint venture, restructure and bring so on that can help us with that.

SPEAKER_2 (3:35)

Okay. That makes sense. So with that, you tied it up, tied things up there. Okay. Mallay, I'm going to get that. Yeah, Mallay. Mallay.

Shawn Howarth (3:42)

Mallay, phonetically Mallay and Mallay. Mallay.

SPEAKER_2 (3:45)

When did you pick that up?

Shawn Howarth (3:47)

We acquired that in late 2024, closed the deal in 2025

We raised about $30 million in three tranches, one in a 10 cent round, one in a 20 cent round, and most recently in a 60 cent round. Yeah. And that capital has gone in to reopen the underground. We've restarted the mill, so we're producing a concentrate. We're in this test mill processing right now, our pre-production stage.

SPEAKER_2 (4:09)

Yeah.

Shawn Howarth (4:10)

And what's critical is taking the current production levels and start to ramp them up so that we can get to rated capacity of 600 tons per day or around 2 million ounces on an annualized silver equivalent production basis by the middle of next year.