Excellon Resources (EXN.to, EXLLF)

What to do with my Excellon Resources shares---

One share of Silver Eagle Mines (SEG.to) = 0.2704 shares of Excellon Resources (EXN.to)

Think I'll hold on to them for now. But sooner or later, with the decrease in revenue from the declining oil fields, the Mexican Government is going to have to find a replacement revenue source. Increased taxes on the mining industry could be one of their answers.

http://www.excellonresources.com/

New president and CEO:

http://finance.yahoo.com/news/Excellon-Appoints-New-ccn-2552520544.html?x=0&.v=1

http://stockcharts.com/charts/gallery.html?EXN.TO

Nice move today:

http://stockcharts.com/charts/gallery.html?EXN.TO

Identifying Mexican Mining Stars by Trey Wasser, 1/10/10

"Speaking of large CRD deposits, I recently visited Excellon Resources' (EXLLF.PK) La Platosa mine. This is another deposit that was originally discovered by Minera Cascabel and is arguably the highest grade deposit in Mexico. The average grades at La Platosa run about 986 gpt silver with 9% lead and 10% zinc. Needless to say, at those grades the lead and zinc add some significant by-product credits to the silver and reduces their current cash costs to $3 per ounce. Unlike most companies, this is an "all in" cash cost that includes corporate G&A and exploration costs. They have a very active exploration program and are adding to the mine life while also exploring the district. They recently purchased Silver Eagle Mines and picked up a newly refurbished mill at Miguel Auza, about 200km away. They paid $5MM for Silver Eagle and got a $15MM mill and $24MM in Mexican tax losses. They are crushing the La Platosa ore and trucking it to Miguel Auza, which is producing about 200TPD. They are currently permitting an onsite mill and have all the equipment already at the mine. This mill will be capable of closer to 350TPD and cash costs will go even lower, probably to a negative number. New management is really focusing on getting corporate expenses in line. Excellon has a current market cap of about $150MM. When the new mill is built, I think they will be producing about 3MM ounces of silver at a $0 or negative "all in" cash cost. That means potentially $50MM to $60MM a year in cash flow and some huge profits. It has all the ingredients so I added EXN to the Model right after the visit."