Toronto- and New York listed Excellon Resources is considering spinning out its Silver City project, in Saxony, Germany, to shareholders as a new Europe-focused greenfield exploration company, the miner reported on Monday.
“The company is at an inflection point, where to continue growing we need to capitalise on opportunities that drive additional value. A spin-out of Silver City would fit that strategy and provide shareholders with direct exposure to district-scale exploration focused in a historically prolific mining region,” president and CEO Shawn Howarth said.
Silver City was mined for high-grade silver for more than 800 years until the late nineteenth century. Excellon holds exploration licences totalling 340 km2 over a major epithermal silver system that has been encountered in almost every drill hole, with high grade intersections including 1 043 g/t silver-equivalent over 1.3 m, 1 042 g/t over 0.45 m and 1 633 g/t over 0.35 m.
Excellon is also reviewing acquisition and partnership opportunities in Mexico, where the company is winding down operations. Production at Platosa will continue until the end of the month, with remining ore processed and care-and-maintenance preparations to be completed in October.
In Idaho, in the US, Excellon is advancing drilling at Kilgore, with 1 500 m having been drilling since the start of its 2022 exploration programme.
“Kilgore is a cornerstone exploration project in our portfolio that will benefit from continued advancement, including the ongoing drill programme. Acquiring advanced development of producing assets with further potential to benefit from an experienced operational management team would be another great way to grow value and attract liquidity to the company and will be rigorously pursued,” said Howarth.