Excellon moves closer to restarting Peru's Mallay mine after rehabilitation work

Excellon Resources Inc. (TSX:EXN) is advancing towards a potential restart of its Mallay silver-lead-zinc mine in Peru, having completed initial rehabilitation work and commenced dewatering. The company plans extensive drilling programs totaling over 16,000 meters in Q4 2025 at the Isguiz Extension and Shafra Zone to delineate additional mineralization and extend the mine's life, with initial results anticipated in early 2026. Excellon possesses over $20 million in cash and liquidity, providing full funding for these exploration efforts and the restart, aiming to significantly enhance the mine's resource base beyond historical estimates.

Analysis

Excellon Resources Inc. is making significant strides towards restarting its Mallay silver-lead-zinc mine in Peru, having completed the initial rehabilitation of over 2,800 meters of mine access across two levels. Concurrently, dewatering efforts below the 4090 level are underway, directly supporting future drilling and operational restart planning. This progress indicates a tangible advancement in the company's operational readiness.

The company plans an aggressive exploration campaign in Q4 2025, including a 13,000-meter, 40-hole program at the Isguiz Extension and a 3,500-meter, six-hole program at the Shafra Zone. These initiatives are designed to test down-dip and lateral extensions of mineralization, as well as explore a gold-rich bulk-tonnage target, with the explicit aim of delineating additional resources and extending the mine's life beyond historical estimates. Initial drilling results are anticipated in early 2026.

Financially, Excellon is well-positioned with over $20 million in cash and available liquidity, which fully funds the planned drilling programs and restart efforts. This strong financial standing mitigates immediate funding risks associated with the restart and exploration, supporting an optimistic outlook for the project's advancement and potential resource expansion, further bolstered by an expected updated resource estimate in Q4 2025.

Key Decisions for Investors

• Investors should closely monitor the upcoming Q4 2025 updated resource estimate and the initial drilling results expected in early 2026, as these will be critical indicators of Mallay's extended mine life and resource potential
• The company's strong liquidity position of over $20 million provides a solid financial foundation for these restart and exploration efforts, reducing near-term funding concerns
• Consider the potential for significant resource expansion and operational restart as key catalysts, but remain aware of typical mining project development risks inherent in such ventures