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Excellon Resources – First Concentrate Production At The Mallay Silver-Lead-Zinc Mine In Peru

The KE Report Aug 6, 2026

Summary

Excellon's Mallay silver-lead-zinc mine in Peru produced first concentrate (the metal-rich powder shipped to smelters) after milling about 12,000 tonnes in July.

The concentrator is deliberately running at 400 tonnes per day — two-thirds of its 600-tonne rating — with 2027 set as the first full production year.

Management expects revenue to exceed the monthly burn this year, starting from about $10 million cash plus an undrawn $5 million credit facility.

Silver reports to the lead concentrate and zinc ships separately; current feed runs about three ounces per ton silver equivalent.

Half of a 10,000-meter infill program is done; the stated 3-to-4-year mine life has no reserves, with drilling aiming for 5-to-10 years.

Shawn Howarth's takeaways

  • Top takeaway Argues first concentrate is a de-risking milestone that proves the metallurgy and surface infrastructure rather than commercial production, framing the rest of 2026 as setting the mine up for a bigger 2027.
  • Believes the ~3 oz/ton silver-equivalent feed being processed now simply reflects material accessible at restart, and expects grades to rise as development reaches the deeper, higher-grade zones described in the 43-101.
  • His growth thesis is that mineralization continues below ~300 m and parallel zones exist west of the anticline; he points to infill drilling, a deep geophysics hole, and the undrilled Traceros surface anomaly 6 km west of the mine as the path to his stated 5-10 year mine-life objective.
  • Sees expansion scenarios toward 1,000 tpd because the mill can take another ball mill and additional flotation capacity, but conditions this on drilling proving multiple ore feeds.
  • Expects revenue to exceed the burn rate during 2026 on roughly 10 million cash plus an undrawn 5 million facility, and promises heavy news flow: infill and step-out results, mine planning updates, the Silver City spin-out and advancement of Kilgore.

Shad Markwitz's takeaways

  • Top takeaway Frames the restart soberly for listeners, cautioning that first concentrate is not commercial production and that 2027 is the year that really counts for output at Mallay.
  • Presses the resource caveat that there is no reserve estimate yet and the 3-4 year mine life rests on indicated resources, while agreeing mine life could extend well beyond that.