Mallay Silver-Lead-Zinc Mine Processing Plant in Peru Completes Trial Production, Processing 19,900 Tonnes of Ore
en.Wedoany.com Reported - On October 29, Canada-based Excellon Resources announced that the processing plant at its Mallay silver-lead-zinc mine in central Peru had completed three rounds of trial production, processing a cumulative 19,884 tonnes of ore and recovering 52,860 ounces of silver contained in concentrates, with silver, lead and zinc recoveries reaching 84%, 84% and 81%, respectively. The company has received its first sales payment of US$4.4 million under the concentrate offtake agreement signed with Glencore.
The ore used in the three trial production rounds came mainly from surface stockpiles formed during earlier mine development and from narrow-vein stopes above the 4,090-metre level. The processing plant currently operates in batch mode, with plans to gradually transition to continuous production. The existing plant has a rated ore processing capacity of 600 tonnes per day, and the company aims to reach this level by mid-2027.
A new contractor has been selected for the underground mining works, and the 400 decline has been dewatered and is now under rehabilitation. The company plans to sign the formal mining contract in the fourth quarter of 2026 and to complete the mobilization of the construction crew and equipment in the first quarter of 2027. The three narrow-vein stopes above the 4,090-metre level are expected to continue supplying feed to the processing plant through the first quarter of 2027.
The mining plan schedules the start of long-hole mining at the Clavo 3 zone and cut-and-fill mining at the Daria vein in December 2026, with Clavo 3 planned to ramp up production gradually in the first quarter of 2027. With the completion of access development on the 400 level, the Clavo 6 zone is expected to enter production in the second quarter of 2027.
SGS has been engaged to update the mineral resource estimate for the Mallay mine, with plans to incorporate data from up to 27 new drill holes and additional underground channel samples near the 4,090-metre level. SRK Consulting is preparing a mining plan for the next two years based on the updated geological model, with the resource estimate and mine plan expected to be completed by the end of 2026.
