Excellon Resources begins rehabilitation work at Mallay Silver Mine in Peru
Excellon Resources Inc (TSX:EXN, OTCQB:EXNRF) announced that it has mobilized a mining contractor and commenced underground rehabilitation activities at its Mallay Silver Mine in Peru.
The company said the work is a key step in its plan to restart operations at the past-producing mine and return to silver production.
An experienced underground mining contractor has been mobilized to begin rehabilitation, development, and preparation activities. Initial efforts are focused on cleaning and reinforcing the main haulage levels of the mine, including scaling, improving ground support and ventilation, and re-opening key drifts and ramps for equipment access.
Rehabilitation activities are expected to be completed within four months, aligning with the company’s broader restart schedule. As rehabilitation advances, Excellon plans to evaluate production planning using existing underground development and stope preparation.
According to the current timeline, the company remains on track to ramp up to nameplate capacity of 600 tons per day by the second quarter of 2026.
“Our team, in partnership with an experienced Peruvian contractor, is now fully engaged in safely and responsibly rehabilitating the underground workings and preparing key areas of the mine for the next phase of development,” Paul Keller, Excellon’s chief operating officer said in a statement.
“This progress underscores the company's operational focus and commitment to executing the Mallay restart efficiently and safely, bringing Excellon closer to resuming silver production in Peru."
Over the next six months, the company is prioritizing execution of its detailed restart plan while also working to demonstrate mineral potential beyond the historically defined resource base.
An updated NI 43-101 Mineral Resource Estimate for the Mallay Mine is in progress and is expected to be completed by late August 2025. The estimate will incorporate historical data and reflect current metal price assumptions.
Rehabilitation of critical underground workings is ongoing and scheduled for completion by November 2025. Once this phase concludes, Excellon plans to advance internal mine planning and evaluate operational scenarios to support the restart.
Following rehabilitation, the company will initiate development and stope production preparations, with further production guidance to follow.
Underground exploration drilling is also planned, targeting extensions of known high-grade veins and new mineralized zones with the goal of expanding the resource base.
At the same time, exploration efforts are underway on high-priority targets in the immediate Mallay area, including the Pierina vein system. Excellon is also advancing community discussions related to Tres Cerros, a 2.5-kilometre corridor exhibiting high-sulfidation epithermal alteration, surface mineralization, and geophysical anomalies.
Shares of Excellon were up around 7% in Toronto on Monday morning at $0.34.
Source: https://www.proactiveinvestors.com/