Excellon Increases Indicated Silver Mineral Resource by over 500% for the Mallay Mine
Excellon Increases Indicated Silver Mineral
Resource by over 500% for the Mallay Mine
Toronto, Ontario--(Newsfile Corp. - February 23, 2026) -
Excellon Resources Inc. (TSXV: EXN) (OTC
Pink: EXNRF) (FSE: E4X2)
("
Excellon
" or the "
Company
") is pleased to announce its first
independent Mineral Resource Estimate ("
MRE
") for the Mallay Silver-Lead-Zinc Mine ("
Mallay
" or the
"
Project
") in central Peru, prepared by SGS Canada (Geological Services).
Excellon acquired Mallay as a modern, fully permitted past-producing underground mine with a 600 tpd
processing facility first commissioned in 2012, supported by an extensive drilling and operating
database generated during Buenaventura's ownership. The new MRE establishes a compliant, higher-
confidence inventory to underpin staged restart planning while Excellon advances new upside targets
through ongoing drilling that is not reflected in the MRE. The estimate reflects Excellon's work to
consolidate historical drill and mine channel-sample data previously used for reserve estimation by the
prior operator, and to generate a current Mineral Resource through geological reinterpretation and 3D
modelling in accordance with CIM Best Practice Guidelines and NI 43-101 disclosure standards.
Highlights:
Mineral Resources are reported at a base cut-off grade of 120 g/t silver equivalent ("
AgEq
") based on
assumed metal prices, recoveries and costs (see Notes / Input Parameters):
Indicated Mineral Resources:
890,000 tonnes grading 195 g/t silver, 3.33% lead, and 4.83%
zinc. The Indicated mineral resource includes 5.57 Moz of silver, 65 Mlbs of lead, and 95 Mlbs of
zinc.
Inferred Mineral Resources:
362,000 tonnes grading 149 g/t silver, 2.67% lead, and 4.32% zinc.
The Inferred mineral resource includes 1.74 Moz of silver, 21 Mlbs of lead, and 34 Mlbs of zinc.
Mineral Resource (AgEq):
12.01 Moz grading 420 g/t Indicated and 4.00 Moz grading 344 g/t
Inferred.
High confidence dataset underpinning MRE:
The estimate is based on extensive historical
drilling and operating data, including 166,420 m of drilling and 22,740 m of channel samples,
supported by mine mapping and mined-out wireframes to exclude depleted areas.
No new drilling
has yet been integrated into the MRE.
Material silver growth vs. historical inventory at comparable Ag grades:
The NI 43-101
MRE outlines a materially larger Indicated silver inventory than the end-2018 historical Isguiz
inventory, at broadly comparable silver grades.
Near-term growth catalysts not included in the current MRE:
A 10,000-metre infill and
extension program is underway to improve confidence for mine planning and test near-mine
extensions, where Isguiz mineralized zones appear to be widening. In parallel, Excellon is
prioritizing the Footwall Zone (calc-silicate mineralization, locally 3-8 m widths, identified over a
330 m high by 500 m along strike), and the Shafra Zone gold-silver area.
Shawn Howarth, President and CEO, commented,
"This new resource estimate is a major
milestone for Excellon and a critical step forward on restart planning - but it is just the beginning. We
have substantially expanded the historic mineral inventory we acquired at Mallay before incorporating
any results from the current drill program.
With almost one million Indicated tonnes of high-grade silver-
lead-zinc mineralization defined at a cut-off aligned with our restart assumptions, using a conservative
silver price of US$30.00 per ounce, and assuming a fully utilized mill capacity of approximately 200,000
tonnes per year (600 tonnes per day), we believe Mallay has the foundation to support a multi-year
strategy consistent with the planning horizon we have outlined to the market.
Importantly, this estimate is built on historic drilling and operating channel-sample data, enhanced by
modern 3D modelling and confirmatory structural work, providing a strong technical platform for staged
development, near-mine drilling, and ongoing resource growth.
We see meaningful potential to further
extend that planning horizon as drilling progresses and as upside targets - such as the Footwall Zone
and Shafra - are advanced, none of which is in the current MRE."
Table 1: Mallay Mine Project Underground Mineral Resource Estimate, February 18, 2026
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Mallay Mine Property Mineral Resource Estimate Notes:
(1) The effective date of the Mallay Mine project Mineral Resource Estimate (“MRE”) is February 18, 2026.
(2) The mineral resource was estimated by Allan Armitage, Ph.D., P.Geo. of SGS Geological Services and is an independent Qualified Person
as defined by NI 43-101. Armitage completed a site visit to the project on December 12-13, 2025.
(3) The classification of the Mineral Resource Estimate into Indicated and Inferred mineral resources is consistent with current 2014 CIM
Definition Standards for Mineral Resources and Mineral Reserves.
(4) All figures are rounded to reflect the relative accuracy of the estimate and numbers may not add due to rounding.
(5) All mineral resources are presented undiluted and in situ, constrained by continuous 3D wireframe models (considered mineable shapes),
and are considered to have reasonable prospects for eventual economic extraction. The mineral resource is exclusive of mined out material.
(6) Mineral resources are not mineral reserves. Mineral resources which are not mineral reserves, do not have demonstrated economic viability.
An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated or Measured Mineral Resource and must not be
converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated or
Measured Mineral Resources with continued exploration.
(7) The Mallay mineral resource estimate is based on a validated drillhole database which includes data from 1,595 surface and underground
drill holes and 18,150 channels. The drilling and channels total 166,420 m of drilling and 22,740 m of channels. The resource database totals
19,609 drill hole assays and 40,131 channel assays.
(8) The mineral resource estimate is based on 10 three-dimensional (“3D”) resource models representing epithermal veins which comprise the
Mallay vein system. 3D models of mined out areas were used to exclude mined out material from the current MRE.
(9) Grades for Ag, Pb, and Zn are estimated for each mineralization domain using 0.5 m capped composites assigned to that domain. To
generate grade within the blocks, the inverse distance squared (ID2) interpolation method is used for all domains. Average density values were
assigned to each domain based on values determined from mining and processing.
(10) It is envisioned that the Mallay Mine project deposits may be mined using underground mining methods. Mineral resources are reported at a
base case cut-off grade of 120 g/t AgEq. The mineral resource grade blocks were quantified above the base case cut-off grade, below surface
and within the constraining mineralized wireframes.
(11) The underground base case cut-off grade of 120 g/t AgEq considers metal prices of US$30.00/oz Ag, $1.00/lb Pb and $1.35/lb Zn, and
considers metal recoveries for Ag, Pb and Zn: 89% for Ag, 88% for Pb and 87% for Zn.
(12) The underground base case cut-off grade of 120 g/t AgEq considers a mining cost of US$60.00/t rock and a processing, treatment and
refining, transportation and G&A cost of US$40.00/t mineralized material.
(13) The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing,
or other relevant issues.
MRE Input Parameters
Parameter
Value
Unit
Silver Price
$30.00
US$ per ounce
Zinc Price
$1.35
US$ per pound
Lead Price
$1.00
US$ per pound
Underground Mining Cost
$60.00
US$ per tonne mined
Processing, Treatment and Refining,
Transportation and G&A Cost
$40.00
US$ per tonne milled
Silver Recovery - Sulphide
89.0
Percent (%)
Lead Recovery - Sulphide
88.0
Percent (%)
Zinc Recovery - Sulphide
87.0
Percent (%)
Mining loss/Dilution (underground)
10/10
Percent (%) / Percent
(%)
Cut-Off Grade Sensitivity
To illustrate the robustness of the estimate across a range of cut-offs, the updated model shows the
following contained AgEq ounces at selected cut-offs:
Table 2: Mineral Resource Estimate at Varying Cut-Off Grades
Cut-off Grade
(AgEq g/t)
Tonnes
Grade
Total Metal
Ag
(g/t)
Pb
(%)
Zn
(%)
AgEq (g/t)
Ag
(oz)
Pb
(Mlbs)
Zn
(Mlbs)
AgEq
(oz)
Indicated
50
991,000
179
3.05
4.45
386
5,706,000
67
97
12,302,000
100
924,000
189
3.23
4.71
409
5,627,000
66
96
12,136,000
120
890,000
195
3.33
4.83
420
5,572,000
65
95
12,014,000
150
831,000
204
3.50
5.05
440
5,454,000
64
93
11,755,000
180
769,000
215
3.69
5.28
462
5,313,000
63
90
11,431,000
210
715,000
225
3.87
5.48
482
5,166,000
61
86
11,088,000
250
633,000
241
4.17
5.80
515
4,903,000
58
81
10,487,000
Inferred
50
397,000
140
2.49
4.05
322
1,781,000
22
35
4,104,000
100
378,000
145
2.59
4.21
334
1,759,000
22
35
4,055,000
120
362,000
149
2.67
4.32
344
1,739,000
21
34
4,000,000
150
336,000
157
2.82
4.48
360
1,697,000
21
33
3,887,000
180
298,000
171
3.08
4.64
384
1,635,000
20
30
3,681,000
210
272,000
180
3.25
4.82
403
1,573,000
19
29
3,523,000
250
234,000
193
3.50
5.07
430
1,454,000
18
26
3,234,000
(1)
Underground mineral resources are reported at a base case cut-off grade of 120 g/t AgEq (highlighted). Values in this table reported above
and below the base case cut-off grades should not be misconstrued as a Mineral Resource Statement. The values are only presented to show the
sensitivity of the block model estimate to the base case cut-off grade.
(2)
All values are rounded to reflect the relative accuracy of the estimate and numbers may not add due to rounding.
Figure 1: Longitudinal Section Looking East - MRE Mineralization by Grade
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Figure 2: Longitudinal Section Looking East - MRE Mineralization by Category
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Additional Upside at Mallay, Not Included in the Current MRE
Isguiz Continuity to Drive Mineralized Extensions:
Initial 10,000-metre drill program underway
is designed to improve confidence in the MRE for mine planning and expand near-mine
mineralization.
Footwall Calc-Silicate Upside:
Excellon has identified a broader footwall calc-silicate zone
(locally 3-8 m widths) adjacent to the principal vein system that is not included in the current MRE.
Footwall Zone testwork and staged stockpiling:
As previously disclosed (February 5, 2026),
initial third-party metallurgical testwork on the Footwall Zone material is complete and supports
processing via blending with Isguiz and other Mallay zones during staged restart.
Stockpiling is
being sequenced to support planned blending and metallurgical validation.
Shafra Zone:
5,000 m drill program aimed at extending known gold veins (Pierina vein) and other
mineralized zones.
Figure 3: Longitudinal View, Looking East - Interpretation of the Footwall Zone Exploration
Area
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What's Changed: Upgrading Historical Work to Applicable Reporting Standards
Excellon's resource estimation work was completed in three integrated phases:
1
.
In-house geological reinterpretation and 3D modelling: Minera CRC geologists with Mallay deposit
experience revalidated and relogged historical drill holes, supported by historical Buenaventura
core, reviewed underground mapping, sampling, and coded mineralization domains developed by
Buenaventura, and revised the mine model using a modern 3D platform.
2
.
Confirmatory structural validation: Excellon completed a confirmatory review and estimation focus
on the 10 most significant structures historically exploited by Buenaventura, which are expected to
form the basis of early staged mine development and initial mining areas.
3
.
Independent technical report and disclosure: SGS has been commissioned to prepare the NI 43-
101 technical report and supporting disclosure for the new MRE.
Comparison to Historical Mallay Resource Disclosure
Indicated Mineral Resources in Excellon's new MRE are approximately 500% higher than the combined
end-2018 Buenaventura Proven + Probable Reserves plus Indicated Resources reported for Isguiz on a
historical basis. This comparison is provided for context only and should not be interpreted as a like-for-
like comparison of Mineral Resources and Mineral Reserves.
Notwithstanding a lower cut-off grade, the
Indicated Resource remains broadly comparable to Buenaventura's historical reserve grade for the
same zone - reflecting both a restart-aligned cut-off and improved modern 3D modelling.
By comparison, Buenaventura's historical disclosure for the Isguiz Zone at December 2018 (based on
2018 commodity prices and Buenaventura's cost structure):
Proven + Probable Reserves:
133,889 tonnes @ 203 g/t Ag, 3.68% Pb and 6.75% Zn
Indicated Resources:
6,762 tonnes @ 229 g/t Ag, 2.23% Pb and 3.42% Zn
Inferred Resources:
251,805 tonnes @ 208 g/t Ag, 4.02% Pb and 4.90% Zn
Historical Resource Disclosure Notes:
(1)
Prepared Compañía de Minas Buenaventura ("Buenaventura") reported in December 2018 as Proven + Probable Reserves plus Indicated and
Inferred Resources in "Revisión y validación de reservas e inventario de minerales al 31 de diciembre 2018 de la mina Mallay de Compañía de
Minas Buenaventura S.A.A. GEOMINERIA").effective date of the Mallay Mine project Mineral Resource Estimate ("MRE") is February 18, 2026.
(2)
Commodity prices used: Ag US$18/oz, Pb US$2,250/t, Zn US$2,600/t
(3)
Reserve polygons constrained by operating mine design rules including a maximum vertical projection of 20 m from channel sampling in areas
lacking drill data
The historical estimate was prepared by Buenaventura for internal reporting purposes during
operations at Mallay. Excellon considers the historical estimate to be relevant as it relates to
mineralization that was historically mined and supported by underground development and channel
sampling; however, the historical estimate was prepared using assumptions, parameters and
classification criteria that differ from current CIM Definition Standards.
A Qualified Person has not
done sufficient work to classify the historical estimate as current Mineral Resources or Mineral
Reserves and Excellon is not treating the historical estimate as current and it should not be relied
upon.
The historical estimate reports categories described as "Proven and Probable Reserves" and
"Indicated and Inferred Resources" by Buenaventura. These categories were prepared under
Buenaventura's internal classification system and are not reported in accordance with the current CIM
Definition Standards adopted by NI 43-101; accordingly, the historical categories cannot be directly
compared to current CIM Mineral Reserves or Mineral Resources.
Next Steps
10,000-metre infill and extension drill program (underway)
Integrate the MRE into longer-term mine scheduling and staged restart planning (underway)
Incorporate calc-silicate mineralized zone into restart plan (based on further drilling)
Report on Isguiz vein extensions Q1 & Q2 2026
Corporate Update
The Company has granted a total of 127,312 deferred share units ("DSUs") to non-executive directors in
respect of directors' fees, pursuant to the Share Incentive Plan. Each vested DSU entitles the holder to
receive upon settlement a cash payment equal to the market value of one common share in the capital of
the Company, or, at the discretion of the board of directors of the Company, one common share or any
combination thereof. The DSUs vest one year from the date of grant and are settled following resignation
or termination as a director in accordance with the Share Incentive Plan and TSXV policies.
Qualified Persons
Allan Armitage, Ph.D., P.Geo. of SGS Geological Services is an independent Qualified Person as
defined by NI 43-101, has reviewed and approved the Mineral Resource Estimate and the scientific and
technical information relating to the MRE contained in this news release. Armitage completed a site visit
to the project on December 12-13, 2025.
Paul Keller, P.Eng., Excellon's Chief Operating Officer and a "Qualified Person" as defined by National
Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the near-
mine opportunities and technical information contained in this release.
About Excellon Resources Inc.
Excellon's vision is to realize opportunities through the acquisition and advancement of quality precious
and base metal assets, leveraging an experienced management team for the benefit of its employees,
communities and shareholders. The Company is focused on the potential restart of the Mallay Silver
Mine in Peru. Excellon also holds a portfolio of exploration-stage projects, including Kilgore, an
advanced gold project in Idaho, and Silver City, a high-grade epithermal silver district in Saxony,
Germany, and the Tres Cerros Gold/Silver Exploration Property in Peru, providing additional growth
upside. Additional details on Excellon's properties can be found at
www.excellonresources.com
.
For Further Information, Please Contact:
Excellon Resources Inc.
Shawn Howarth, President & Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSXV) has reviewed the adequacy or accuracy of this news
release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
All statements, other than statements of historical fact, contained, referenced or incorporated by
reference in this news release constitute "forward-looking statements" and "forward-looking
information" within the meaning of applicable Canadian and United States securities legislation.
Generally, these statements can be identified by words such as "anticipate", "believe", "continue",
"could", "estimate", "expect", "intend", "may", "plan", "potential", "schedule", "should", "target", "will"
and similar expressions, and include statements about events or results that may occur in the future.
This news release contains forward-looking statements and forward-looking information (collectively,
"forward-looking statements") within the meaning of applicable Canadian and United States securities
laws. Forward-looking statements include, but are not limited to, statements regarding the completion,
content and timing of filing the NI 43-101 technical report supporting the updated Mineral Resource
Estimate for the Mallay Mine; the accuracy and reliability of historical drilling, sampling and other data
(including channel sampling and other operating data) used in the Mineral Resource Estimate; the
interpretation of the historical inventory and comparisons to historical estimates; the timing, scope,
success and results of ongoing and planned drilling, including any potential to expand, convert or
reclassify Mineral Resources; the exploration potential of the Isguiz extensions, the Shafra Zone and
the Footwall calc-silicate mineralization, including the potential scale, continuity, metallurgical
response and future relevance of such mineralization; the timing and results of metallurgical
characterization and other technical work; the potential restart of the Mallay Mine and related
timelines, including mine planning, staged development, ramp-up objectives and any decision to
commence or resume production; and the Company's future financial position, strategies and
objectives.
Forward-looking statements are inherently subject to known and unknown risks, uncertainties and
contingencies that may cause actual results to differ materially, including: geological, sampling and
assay variability; interpretation risk related to historical data generated by third parties; permitting and
access delays; cost or technical challenges during rehabilitation and drilling; market and commodity
price volatility; financing risks; and the risk factors set out in the Company's Annual Information Form
dated June 30, 2025, the MD&A and other public disclosure.
The forward-looking statements herein are expressly qualified by these cautionary statements and by
the cautionary statements in the Company's continuous disclosure. Forward-looking statements are
made as of the date of this news release, and the Company disclaims any obligation to update or
revise them, whether as a result of new information, future events or otherwise, except as required by
applicable law.
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