Press release from Marketwire
Excellon Resources Expresses Disappointment With CSR Counsellor's Closing Report Issued Today and Claims Social Responsibility Process Is Flawed
Wednesday, October 19, 2011
TORONTO, ONTARIO--(Marketwire - Oct. 19, 2011) - Excellon Resources Inc. (TSX:EXN) ("Excellon" or "the Company") announced today that it strongly believes that the Corporate Social Responsibility Request for Review Process initiated at its Platosa Mine Site in Durango State, Mexico is flawed due to erroneous information and therefore cannot add any value to Excellon nor any other Canadian company which may be drawn into this process.
Excellon supports the stated aim of the process in principle which is "to assist Canadian Companies to deal with allegations", but fails to see how the process could ever achieve its stated aim as it is presently structured.
Jeremy Wyeth, President and CEO states: "Excellon views its Corporate Social Responsibility as an integral part of the way it operates as a Company and has a proud record with its operations in Mexico. We have successfully worked with two different unions at our two Mexican work sites. The Company is recognized as one of the highest paying mining employers in Mexico with an excellent safety record. Furthermore, we have always had outstanding relationships with all local communities and the Federal and Durango State Governments.We engage in forums for working with local affected communities and meet on a regular basis to maintain our relationships. Excellon's daily shift safety meetings allow satisfactory opportunity to raise any concerns to the supervisory staff and management."
The initial request process was initiated by a disgruntled employee of the Company who was lawfully dismissed last year for sleeping on a scooptram underground while the equipment was running (a violation of the company's safety policy and Mexican Law), along with a Mexican NGO and a union that does not represent the employees at the Platosa Mine site. This union is associated with the Canadian Steelworkers Union.
Excellon through its due diligence regarding this issue subsequently proved to the CSR Counsellor that the allegations made by the requesters were false, and yet the process that has been started cannot end until the requesters, who are not stakeholders of either the community or the Company, decide that they are satisfied.
The CSR Counsellor's Office is attempting to force the Company to enter into a process of structured dialogue with the requesters, which would be in violation of Mexican Labour Laws, and inducing a breach of its existing labour contract with the existing certified union at the mine site. Excellon refused to break Mexican Law and could not legally enter into discussions with rival unions without complying with the Mexican Labour process of Government supervised voting.
It is clear to Excellon that the CSR Counsellor's Office involvement in this process is appearing to legitimize unfounded allegations against the Company as this process would clearly favour one union against the other unions attempting to show that they are representative.
At a meeting held yesterday with Excellon Management, and the Prospectors and Developers Association of Canada, the CSR Counsellor acknowledged that the requesters were not stakeholders. This is clearly not what is stated in the CSR Counsellor's closing report.
The Company has already lost seven days of production at the Platosa Mine in the last two months due to illegal blockades by two rival unions that are engaged in a national battle for dominance in Mexico. Excellon believes that this blockade was fueled by the CSR Counsellor's Office site visit to Mexico in July, 2011. The Durango State Government informed Excellon that in the first blockade by the union that was part of the requesting party, 250 people were bussed in from Zacatecas State over 300kms away to blockade the mine.
Excellon is of the opinion that the Labour Laws in Durango State and the implementation by the Durango State Government are not dissimilar to Canadian Labour Laws.
Excellon has been dealing for eight weeks on an almost daily basis with the Mexican Labour Authority to ensure that Mexican Labour Law is upheld through this process. It is disconcerting that a foreign entity/entities can so easily use an agent of the Canadian Government to aid and abet them in their attempts to circumvent Mexican labour Laws. The requesting union is refusing to follow the Mexican Labour Law that requires them to file a challenge against the existing registered union and then follow a government supervised voting process. The union is demanding instant recognition without following the legal voting process, a tactic that they have used previously on other Canadian Companies operating in Mexico.
Excellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, and Ontario and Quebec, Canada, is committed to building value through production, expansion and discovery. Excellon is producing silver, lead and zinc from the high-grade manto Mineral Resource on its large, 100% owned Platosa Property, strategically located in the middle of the Mexican silver belt. Excellon's focus is on expanding its operating capacity and increasing its Mineral Resources at Platosa where an exploration program focused on diamond drilling and advanced geophysical techniques is ongoing. All of these activities are fully funded through existing cash flow. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system. Excellon also has on-going gold exploration programs on the DeSantis Project, located near Timmins, Ontario and the Beschefer Project, located in northwestern Quebec. Both these projects host known gold mineralization and significant potential for the discovery of additional mineralization.
On behalf of EXCELLON RESOURCES INC.
Jeremy Wyeth, President and Chief Executive Officer
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, business and financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any minerals produced [particularly silver], the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties, and particularly the January 15, 2010 NI 43-101-compliant technical report prepared by Scott Wilson Roscoe Postle Associates Inc. with respect to the Platosa Property. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
FOR FURTHER INFORMATION PLEASE CONTACT:
Joanne C. Jobin Excellon Resources Inc. Investor Relations Manager (647) 964-0292 or (416) 364-1130 email@example.com www.excellonresources.com
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release, which has been prepared by management.